Credit scores and counseling can go together hand in hand if you are careful about if.
Credit scores are important for a lot of reasons
A credit score is one of the most important numbers that you deal with. It can have a huge impact on your chances of getting a mortgage, a job, a rental property or many other types of loans including boat loans. A low score can cause you to pay extremely high finance charges. Your ability to buy a house is severely limited if you have a bad score. Most banks will turn you down immediately.
Although some states ban it, many insurance companies will use a credit score to determine rates. They feel that people with higher scores are better risks or vice versa
You may get a loan but the rate may be higher and cost much more money in the long run,
You have trouble buying a house and go to rent a property and find out that the landlord checked your score and won’t rent to you either.
Your score depends on a lot of things.
Your payment history is a major part of your score. Late payments will really hurt you and they stay on your record for a long time. You then have to plan for the long haul to improve your score. Another important factor is your debt ratio. This is the amount you owe compared to the amount of credit that you have available. The preferred percentage is less than 30%.
Other things that affect your score are inquires on your credit report by lenders to open new credit and the length of time that you have had credit,.
there are things you can do to improve your credit. Many people choose credit counselors. You should think about your goals and problems before you contact a counselor. Make a list. Remember that some services like budget may be free , but many services will require a fee payment.
You need to make sure your counselor is certified too handle your needs. Credit counselors affiliated with the NFCC and AFCPE meet stringent standards of certification that seek to ensure a uniform standard of quality. Take the time to talk to the agency beforehand and get all the information you need up front. Don’t rush. Call more than one agency and compare.