Credit Counseling: What Is It and How Does It Work?

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is Credit Counseling?
How Does Credit Counseling Work?
Creating a realistic budget Reducing monthly expenses Refinancing Avoiding foreclosure Recovering from bankruptcy Mortgage or homeownership debt Student loan debt Improving your credit
Will credit counseling damage your credit score?
Who Needs Credit Counseling?
Is Credit Counseling Ever Required to Get a Personal Loan?
When to Use Credit Counseling
Creating a budget and sticking to it Reading a credit report and correcting any errors Buying a home Making student loan payments Managing debt Taking out a reverse mortgage Refinancing a mortgage Bankruptcy Foreclosure
What Happens in a Credit Counseling Session
Who Is a Credit Counselor?
National Foundation for Credit Counseling National Association of Certified Credit Counselors Financial Counseling Association of America
Tips for Finding a Credit Counselor
Choosing a Counselor Who Is Right for You
Getting the Most Out of Credit Counseling Services
Will Credit Counseling Help You to Get a Personal Loan?
Monthly income Monthly debts Credit history Credit score
The Takeaway
3 Personal Loan Tips
Shopping around helps ensure that you’re getting the best deal you can. Lantern by SoFi makes this easy. With one online application, you can find and compare personal loan offers from multiple lenders. If the interest rates you’re being offered seem too high, try lowering the loan amount. Generally, the larger the loan, the greater the risk for lenders, who likely charge a higher interest rate for the increased risk level. Watch out for lenders who advertise “guaranteed” loans. Legitimate lenders will want to know your creditworthiness before offering a loan.
Frequently Asked Questions
Photo credit: iStock/Inside Creative House
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About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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