Are Credit Card Management Services Worth The Fees?

Credit card management services assist consumers by monitoring credit, providing debt and loan advice and providing access to credit reports. In a day when identity theft runs high and a lot of transactions are completed online, it is wise to monitor your credit to protect yourself from fraud. However, many of these services are themselves fraudulent or may be a waste of money. Look for the following aspect when selecting a credit or debt management agency to ensure you are getting what you need.

Access to all Three Credit Bureaus

Your credit score is recorded and monitored by three bureaus: Equifax, Experian and TransUnion. Understanding your score means accessing all three of these reports. It is also the best way to ensure your report is accurate. If a late payment or debt is showing up on only one of your three reports, it should be a red flag that the charge may not be accurate. By cross-checking reports across the agencies, you have a better chance of catching fraud and miss-reporting. 

Unlimited Checks Each Month

A beneficial service should not put a limit on how many times you can access your credit score and information. While your credit score will not change significantly day-to-day, small changes will occur with regular frequency. Additionally, you need to be able to view your report for certain situations. For example, if you are concerned over a late payment you need to see if it has hit your credit report. You also need to know your credit score before seeking a loan or entering a rental application.

Email Alerts

Your credit debt management service should email you with regular alerts about your financial health. Today, there is no reason why reports should not be automated to bring you a lot of ease in managing your finances. The whole point of these services is to make monitoring your debt easy and seamless for you. If you do not receive email alerts, you are missing out on a big part of the convenience factor. 

Personal Response to Questions

Most consumer credit management services have a significant online interface you will use for daily interactions with the company. However, if you have a question, you should be able to speak with a representative by phone. Long wait times are not an industry standard, so do not accept unreasonable delays from a company. Seek a service that is responsive to your questions and takes the time to answer them sufficiently.

Options for Debt or Credit Counseling

Most credit management services are simply watchful eyes over your finances. Some services do offer credit counseling, which can be a great tool in advising you on the best strategies to rebuild your credit. There are definitive steps any person can take to get out of debt effectively and build a healthy credit score and asset to debt ratio. If you are concerned with these issues in your own finances, look for a service that can offer you advice and credit negotiation services to assist you in developing a greater financial health. 

View all 3 of your FREE Credit Scores

blog comments powered by Disqus