Credit Repair should not be confused with other credit services such as debt consolidation, credit counseling, or debt negotiation.
Credit repair is helping consumers dispute and delete inaccurate, unverifiable, and untimely items on their credit report that are being illegally reported. Credit repair is also about helping consumers understand their credit and helping them build positive credit so they can have the positive credit profile and score they deserve.
Debt consolidation is the process of combining all outstanding debts in one loan account. The purpose of debt consolidation is usually to lower monthly repayments or lower interest rates on a loan.
Credit Counseling is advice given by counselors to people about how to use credit responsibly and how to get out of serious debt. When a person participates in credit counseling their creditors may note it in their credit reports.
The fact that they have resorted to a credit counseling program is a huge red flag for prospective credit grantors. Remember, paying off debts is a step in the right direction, but it does not restore their credit.Debt negotiation is when a 3rd party negotiates with creditors and establishes a payment plan on behalf of the debtor.