It may be more important now than ever before for consumers to be aware of their credit scores. A consumer credit counseling service (CCCS) can help a person in a number of financial areas. People can use a CCCS before preparing a loan application. If someone is trying to establish a realistic, effective budget, a CCCS can help with that, as well.
Most people, however, visit credit counselors when they are having trouble getting out of debt. After an interview process, a counselor can help a client set up a reasonable spending plan that will help him overcome his debt problems. The plan will also allow the client to save some amount of money each month for emergency situations. A CCCS can also work with a client’s creditors to bring down monthly payments and to put an end to collection calls.
“What is a CCCS?” Using a CCCS to Help Raise Credit Scores
A credit score, or FICO score, is actually made up of three scores that come from each of the credit reporting bureaus, Transunion, Equifax, and Experion. Most people realize that a credit score can affect their ability to get approved for loans or credit cards, but a lot of people do not know that having a good credit score can actually help them save thousands of dollars. For instance, if a person had a credit score between 720 and 800 he could be approved for a loan at a much lower interest rate than a person with a score ranging somewhere between 601 and 679. If the loan gets paid over the course of 30 years, the difference between what each person would actually pay would be astronomical.
A CCCS can help a person raise their credit score by using a number of different tactics. Many services will also give their clients credit report updates. This is one of the best ways to protect against identity theft, as a sudden change in score can indicate that something fraudulent has occurred.