What Advice Do Consumer Credit Consulting Firms Give?

Consumer credit consulting firms offer financial management advice to keep your credit score high and your asset to debt ratio in balance. They consider your credit history and current financial health then make recommendations to improve your fiscal position. Some of those recommendations may include:

Appropriate debt limits: You should maintain an overall debt of less than 10% of your assets. At times this will be higher, and a service can help you determine when more debt is appropriate.

Total credit used limits: You should keep a balance of less than 5% of your total allowable credit. 

Number of credit lines open: You should have multiple sources of credit and debt, but not too many.

Diversified credit and debt: You should have a balance of revolving and installment loans with a history of paying off both types.

Identity fraud protection: A credit consulting firm should alert you of suspicious activity on your financial reports. If you do your personal banking online, this is an important factor to be aware of. 

Debt negotiation: If you do find yourself unable to make payments on a debt, a credit consulting firm may be able to assist you in negotiating down your existing debt.



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