Requirements

• Laws vary from state to state, but the person you want to advise you on credit repair matters should belong to a credit service organization (CSO). A CSO provides at least three products and/or services including: improves, saves or preserves a consumer's credit record, history or rating; helps you in obtaining an extension of credit; and offers you advice, assistance, instruction or related materials.
  
  In Oregon, for example, CSOs must be registered by the Division of Finance and Corporate Securities in order to do business in that state. Check with your state to learn which requirements apply locally.
  
  

Credit Preservation

• Once you have found a credit counselor who meets state legal requirements and whose references check out, you can expect that you'll receive help in preserving your credit. This means that your adviser can help you plan a strategy for getting out of debt; removing damaging information from your credit reports; lowering your interest rate on credits cards; and finding ways to raise your credit score.
  
  

Credit Extension

• In some cases, your credit may not be damaged due to something that you have done such as late payments on your bills, personal bankruptcy or similar problems. Incorrect information on your credit report and identify theft are two reasons why your credit score is low, something that can be remedied by contacting the credit bureaus and creditors directly. If you need credit, your credit counselor can work with a creditor to have them extend credit, if eligible. Have your adviser explain what interest rates and terms of credit are available to you.
  
  

Budget

• Your credit counselor will help you look beyond your current plight by offering guidance on how to set up a personal budget. That budget will take into consideration your income, current debt, living expenses, retirement and other life goals. Ask your adviser to help you manage a budget that will fit your lifestyle.
  
  

Tips

• Most credit counselors charge a fee for their services including those working for non-profit organizations. Obtain a fee schedule before working with any adviser with some offering a sliding fee based on your ability to pay them. Avoid a long term contractual obligation; be suspicious of anyone who promises something too good to be true.