Credit.org is a non-profit agency that was founded in 1974. The company’s mission is to improve the lives and financial well-being of individuals and families by providing quality financial education and coaching. Credit.org offers confidential and professional credit counseling, debt management services, bankruptcy education, and housing counseling, as well as online personal finance education and in-person seminars.
Pros
- Free Debt Analysis
- Variety of Services
- Industry Accreditations
Free Debt Analysis
Credit.org allows potential customers to take advantage of a free debt analysis and talk with a Certified Personal Financial Counselor (CPFC). Each counselor has successfully completed a course of education to become certified. During the free analysis, individuals will review their finances, discuss debt relief options, create an action plan, and receive expert support. This plan may not go any further than the free credit counseling services. In some instances, a CPFC will advise consumers to enroll in a debt management plan to consolidate unsecured debt into one payment.
Variety of Services
The counseling agency offers a number of service options for those looking to build their credit, get out of debt, and own a home. Credit.org provides credit coaching, credit report guidance, credit score tips, budgeting and planning tools, debt coaching, debt management plans, bankruptcy coaching, student loan coaching, mortgage coaching, mortgage calculators, reverse mortgage coaching, and more.
Industry Accreditations
Credit.org has several industry accreditations and certificates. The company has Certified Personal Financial Counselors and is accredited by the NFCC and AICCCA.
Cons
- Enrollment Fees
- Long Setup Time
- Lack of Client Control
Enrollment Fees
Fees assessed under Credit.org’s debt management plan are a one-time enrollment fee of up to $35 with a monthly service charge of up to $20. Fees vary by state and by individual circumstances.
Long Setup Time
The initial 30 to 45 minute phone call with Credit.org to start the process is relatively standard, but the time it takes to gather all necessary financial documents may be a substantial time commitment.
Lack of Client Control
When a customer chooses to work with Credit.org, their counselor and the company will then divide their payments and send out funds to their creditors without their involvement. For example, if a customer would prefer to pay off their highest interest rate accounts first, but their counselor disagrees, the counselor ultimately gets to make the decision. The way the company’s business model is set up, the counselor decides the appropriation of funds, not the customer.
Our Recommendation
If you’re primarily interested in working with a credit counselor or financial coach to improve your financial situation, Credit.org may not be a bad option. However, if you’re looking for a dedicated debt settlement or debt consolidation firm to help you get out of debt, Credit.org won’t be able to do much to assist you. At this time we recommend another company for debt consolidation and counseling services, such as Consolidated Credit.
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User Score20 people found this review helpful!Wow! It LOOKED like it was a good move. They were able to lower most of the interest rates on my cards. But that’s where the service seems to end.
I changed banks and filled out the form on the website. Guess what? They goofed and tried to use the old account. $30.00 NSF fee. A text to them was answered with a nice apology for their mistake and a promise of reimbursing me for the bank fee. On top of that, they charged ME $20.00!!! So now that’s $50.00. So, I start digging and looking at the credit card statements. They have been paying some of the cards late EVERY month! My balance is higher now than it was when I started!! But they sure got paid every month! I fired them today and spent most of the day paying the bills and late fees on my accounts.
Like I said, it LOOKED good, but we got burnt. I suggest staying far, far away.Was this review helpful? YesRead More -
User Score011 people found this review helpful!Steals your money without your consent.. then takes forever to refund if you even get a refund. Credit counselors make you feel like a failure and make fun of your situation. I am still waiting to get my money back that they stoleWas this review helpful? YesRead More
- Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
- Negotiates with your creditors on your behalf.
- Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
- Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
- Combines all your debts and creditors into one monthly payment.
- Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
- You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
- Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
- Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
- Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
- Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
- Borrowers can receive funds from their loan within only a few days.
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