Understand the risk of credit counselling and work on your credit

How to get the best credit advice

07:28 20 July 2014

It is common for people seeking credit advice or counsel to trust the lenders or respective loan officers and suppose that what they advise is the gospel truth. The loan officers have reviewed numerous credit reports and so they are presumed to know everything they say. However, their advice is not always perfect. 

When you listen to them, it doesn’t hurt to take their message with a pinch of salt. It is unfortunate that a good number of people have been misled or deceived by lenders who are either not up to it or advancing their own selfish agendas. 

 

Good credit counsel will organise workshops and give you the best advice on how to manage your finances, assist you develop a workable budget and offer enlightening material that you can peruse on your own.

 

Where are the good credit counsellors?

 

There are numerous reputable non-profit credit counsellors. They are available at local offices, through mobile platforms and online. You are likely to get the best credit advice at organizations that offer personalised counselling. Such these organizations are housing cooperatives, credit unions and most universities. They operate non-profit credit sensitization programs.

 

Other good sources of credit counsel are the consumer protection body and your financial service provider. Family and friends can sometimes offer excellent referrals for where to turn to and also provide good insight themselves. 

 

It is important to note that non-profit does not always translate to free or legitimate. Some organizations offering credit advice may have high fees that are concealed. Others will request that you make ‘voluntary’ contributions. These may push you to even greater debts.

 

Be your own credit counsel 

 

Most importantly, be your own credit adviser and critique your own credit report. When you get credit advice from a loan officer or lender, carefully consider it to gauge whether it is good counsel, or something fishy is cooking.