Have you received a mailer from Credit Associates discussing debt forgiveness? Do they ask you to call the eligibility office?
If you haven’t received it, here’s the example below.
So what exactly is Credit Associates? Why are they able to make these claims?
That is exactly what we are going to look at. Keep reading to discover more about Credit Associates.
What is Credit Associates?
CreditAssociates pitches a product called debt settlement (also known as debt relief and debt consolidation programs). If you are not familiar, Debt settlement is the process in which a third party negotiates with your creditor on your behalf. The goal of a debt settlement firm is to negotiate a lower balance on your account. Typically they will try to negotiate the total debt amount down to about 50% of what you owe to provide you with some debt relief. Debt settlement may be a good option, but it also may not be compared to other options. One of the things I look for is the mailer itself, and to be honest, Credit Associates seems to have one of the most honest mailers, not focusing on too good to be tacts or scare tactics, which I appreciate.
Debt settlement may be a great option for you, but it’s helpful to understand each of your options.
Does Credit Associates Hurt Your Credit?
Yes, joining Credit Associates’ debt relief program can negatively affect your credit if your accounts are current when you join the program. The reason your credit score could be negatively impacted is that creditors will settle your accounts when the accounts fall behind as you generally have very little negotiation power when all your accounts are current and you’re making payments.
That said, your credit score being negatively impacted would be the case for any debt relief program, not just Credit Associates.
Check out our article estimating just how much your credit score could negatively be impacted.
Credit Associates Reviews
When I am reviewing companies, I do my best to pull reviews from the most unbiased sources. I want to read both the positive and the negative reviews to get a sense of my potential experience.
BBB
I found BBB reviews on Credit Associates. They had a lot of reviews, which I always find so helpful to be able to hear about other’s experiences. They received a 1.44 out of 5. They have received 42 complaints in the last year, but overall have an A+.
The positive review I could find talked about how their initial experience wasn’t bad, and everything seemed as though it would work out well, but then she felt pressured to make a decision. She still hadn’t decided what she was going to do though, she wanted to do more research.
The negative reviews discussed how they believe Credit Associates is a scam. They feel as though they make a lot of promises that they can’t keep and they ended up wishing they filed bankruptcy instead.
I found Google reviews about Credit Associates. They had over 1,000 reviews, which helped me in furthering research.
The negative reviews discussed feeling lied to. Something I felt important to point out is that people said they were told their credit score would not drop, but they are falling behind on payments, therefore it will affect your credit score.
The positive reviews discussed how thankful they were for the understanding and patient representatives they got to work with. I found the one below interesting, as she said she did see her score go down, however when she kept working with Credit Associates, her score went up.
If you want to read about other experiences, I recommend reading more on BBB or Google. You can also read Credit Associates Reviews on TrustPilot.
How Much Does Credit Associates Cost?
It may vary case by case on how much Credit Associates will charge you. It sounds like they charge a high percentage in fees and make claims that potentially are not true. You can use our free debt relief calculator below to compare Credit Associates monthly payments to other options, as well as exploring what may be best for your situation. You can explore bankruptcy, debt management, debt payoff planning or other debt settlement companies.
Conclusion
In conclusion, it appears as though Credit Associates is advertising debt relief, and may be a good option to get rid of your debt. That said, it could be helpful to understand all your options to get free of debt.
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