Warning: ob_start(): non-static method sem_seo::ob_google_filter() should not be called statically in /home/creditrepairzoom/public_html/wp-content/plugins/sem-seo/sem-seo.php on line 540
Credit Repair

Credit Repair vs Credit Counseling

A lot of people write ask us:  what is the difference between credit repair and credit counseling?

Credit counseling and credit repair are two entirely different things:

  • Credit Repair: the process of removing/updating items on your credit report to boost your credit score.  This is typically conducted by a licensed attorney who professionally manages disputes with each of the credit reporting agencies, as well as past and previous creditors.  Credit repair provides a direct, relatively quick method of improving your credit score.
  • Credit Counseling: this involves working with a professional counselor to create a smart, sensible budget that allows you to repay your existing debts.  This budget may be part of a Debt Management Plan, or “DMP.”  Your counselor may be able to negotiate 10-20% reductions in monthly debt payments.  Credit counseling is often free for the consumer, as credit counseling services are compensated by the consumer’s creditors.

As you can probably gather from the above descriptions, credit repair is a quicker, short-term method of boosting your credit score.  This makes it ideal if you need if you need credit repair for a home loan or auto loan.  Credit counseling, on the other hand, is a longer-term, more indirect approach to reducing debt, increasing credit score, and living a more financially-healthy life. Additionally, credit counseling is often required by law for a period of 6 months after bankruptcy.

If you are really serious about improving your credit, you should probably take advantage of both these approaches.  Fortunately, we can help.  We work with some of the leading credit repair and counseling services in the United States.