Americans who are dealing with financial hardship because of job loss and aftermath caused by the pandemic could be struggling to make ends meat and in some cases they might be racking up credit card debt or they’re simply late on paying bills.
KGUN 9 caught up with Sean Herdrick with the Better Business Bureau of Southern Arizona who says there are ways to get your credit fixed but you have to be careful about who’s handling your situation because they can take your money and leave you with bad credit.
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By: Shawndrea ThomasPosted at 5:23 PM, Apr 19, 2021 and last updated 12:54 PM, Apr 20, 2021
TUCSON, Az. (KGUN) — Americans who are dealing with financial hardship because of job loss and aftermath caused by the pandemic could be struggling to make ends meat and in some cases they might be racking up credit card debt or they’re simply late on paying bills.
KGUN 9 caught up with Sean Herdrick with the Better Business Bureau of Southern Arizona who says there are ways to get your credit fixed but you have to be careful about who’s handling your situation because they can take your money and leave you with bad credit.
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“To see how many 1-star ratings there are for credit companies is frightening. They promise you they will do all of this stuff for your credit, get things taken off. Negotiate with your creditors. They’ll ask for a fee up front, you send them the fee and they never come back to you,” Herdrick said.
According to the BBB you can check their website to find out details about how a company operates. And while there are three common ways to fix your credit. It’s also a good idea to get schooled on extra fees.
“We vet the companies we accredit and if you find an accredited credit business chances are they’re doing a good job and they’re going to help you out. Credit counseling and that’s probably the best way. There’s also debt relief or settlement companies where they offer to settle your debts for you or come up with a plan to do that and a debt consolidation company they will offer a loan at a lower interest rate to help pay off all of your debts at once,” Herdrick said.
The U.S Department of Commerce released data that says Americans are spending their stimulus checks on clothing and sporting goods while others are using it for bills to fend off financial ruin and get their credit back on track.
“Do your research make sure the company you hire can give you what you need,” Herdrick said.
BBB Tip links:
- Freezing your credit and alerts: https://www.bbb.org/article/news-releases/18931-bbb-tip-credit-freezes-and-fraud-alerts
- Credit and debit counseling: https://www.bbb.org/search?find_country=USA&find_entity=60266-000&find_id=2266_6200-2000-100&find_loc=tucson&find_text=Credit%20and%20Debt%20Counseling&find_type=Category&page=1&sort=Relevance&state=fl&touched=1
Consumer Financial Protection Bureau:
- Protecting your credit during the coronavirus pandemic: https://www.consumerfinance.gov/about-us/blog/protecting-your-credit-during-coronavirus-pandemic/ [consumerfinance.gov]
- How to rebuild your credit: https://files.consumerfinance.gov/f/documents/cfpb_how-to-rebuild-your-credit.pdf [files.consumerfinance.gov]
- Building credit from scratch: https://files.consumerfinance.gov/f/documents/201612_cfpb_credit_invisible_checklist.PDF [files.consumerfinance.gov]
- Debt collection portal: https://www.consumerfinance.gov/consumer-tools/debt-collection/ [consumerfinance.gov]
- What should I do when a debt collector contacts me?: https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-when-a-debt-collector-contacts-me-en-1695/ [consumerfinance.gov]
- Credit reports and scores: https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/ [consumerfinance.gov]
- Know your data: Our updated list of reporting companies: https://www.consumerfinance.gov/about-us/blog/know-your-data-our-updated-list-of-reporting-companies/ [consumerfinance.gov]
- How we’re helping consumers during Financial Capability Month: https://www.consumerfinance.gov/about-us/blog/how-were-helping-consumers-during-financial-capability-month/ [consumerfinance.gov]
- Learn how best to request forbearance, mortgage relief, or eviction help at consumerfinance.gov/housing [consumerfinance.gov]