If you have a poor credit rating and want to improve your credit score then there are two options which you can try to get help. You can employ the services of a credit repair company or you can get yourself a credit counsellor. Credit counselling, as opposed to credit repair companies has a lot of advantages when you want to rebuild bad credit.
Credit counselling is also known as debt counselling and is usually provided by a non-profit organisation. It will therefore not cost you anything, unlike employing the services of a company where you will be charged a fee. Because debt counsellors are not offering you advice in return for a fee you are able to feel more confident and trusting towards them. They will guide you through the process of obtaining your credit report from the bureaus and getting any inaccuracies in your report fixed. But in truth, removing any errors from your report is only a small part of rebuilding bad credit.
A debt counsellor will offer you advice about budgeting, paying your bills regularly, and learning how to manage your money more effectively over the long term. You will more than likely have to have a meeting with your counsellor where you will be asked to write down every expense that you have each month. This can really help you to get an overall picture of your current financial situation. Your credit counsellor will then be able to advise you on the steps to take to rebuild bad credit.
Credit counselling is not just concerned with helping you to rebuild bad credit, it is about educating you to spend and borrow responsibly and to make good credit habits a way of life. Living within your means is a skill which comes easily to some people, but others amongst us need guidance to learn the skills effectively. Credit counselling services often provide credit workshops and leaflets which you can take away and study. They may even provide one-on-one counselling services or have meetings which you can attend on a regular basis.
In conclusion, if you try to rebuild bad credit by getting yourself a credit counsellor you really have nothing to lose and a lot to gain. With a credit counsellor you have all of the advantages that you will get if you employ a credit repair company. Plus you will learn how to budget and maintain a good credit score once you have improved your current credit rating. Credit counselling will teach you good financial habits for life. This means that once you have managed to rebuild your credit you will find it much easier to maintain your credit score at a good level.