NFCC Homepage

Get connected with a counselor today!

800-388-2227
Select English
Seleccionar Espanol
Blog Main

What is Credit Counseling and How Can it Help Me?

Sarah Brady, NFCC April 1, 2026
image

Are you looking for a way to pay off your debt, raise your credit scores or just improve your finances overall? If so, an NFCC-certified credit counselor can help!

Of course, we know there are lots of companies out there that claim they’ll “help” you improve your situation. That includes so-called debt relief, credit repair and debt settlement agencies. But these for-profit companies often charge high fees, and working with them can do serious damage to your credit. In fact, the Federal Trade Commission (FTC) calls many of their services outright scams.

If you’re looking for real, reliable help, there’s a much better alternative: nonprofit credit counseling from an NFCC-certified counseling agency. When you work with these agencies you get support from certified financial professionals who give you personalized tips, advice and insights, without any judgment or scammy sales tactics. 

What is credit counseling?

Credit counseling is a service designed to help you achieve your financial goals and credit goals. Credit counselors help you do this by reviewing your credit reports and monthly budget to offer personalized advice and support on any and all of the following topics:

All NFCC-certified credit counseling agencies are accredited nonprofit organizations, and many of their services are free, including the first session.

However, if you enroll in a debt management plan (DMP), which is a three- to five-year debt payment plan that can lower your credit card interest rates and/or your payments, your credit counseling agency may charge you a monthly fee.

How does credit counseling work? A step-by-step overview

Credit counseling agencies offer a variety of services, including one-on-one counseling, educational workshops and webinars, online courses and more. 

If you want to meet with a certified credit counselor for one-on-one support, here’s how it works: 

  1. Schedule an appointment: Visit NFCC.org or call 800-388-2227 to schedule an appointment. Depending on the counseling agency, appointments can be held over the phone, online or in person. 
  2. Prepare beforehand: You’re not required to prepare anything before your appointment, but in some cases preparing can help you have a more productive session. Items you may want to have handy include your recent credit card statements and a list of your monthly expenses. 
  3. Meet with your counselor: You’ll discuss your goals with your counselor, and then the counselor may pull your credit reports or review your budget to assess your situation. The counselor will also offer advice and suggest the best strategies for reaching your goals.
  4. Personalized action plan: Your counselor will send you an action plan that includes their expert input on how to improve your credit or finances.
  5. Follow-up services: If needed, you might meet with your counselor again to get support with specific goals like paying off debt or buying a home. NFCC-certified credit counseling agencies also offer the counseling required to file bankruptcy.  

If you feel nervous about sharing the details of your finances, that’s normal! Just know that everything you discuss with your counselor is completely confidential, and a counseling session is a judgment-free service where your counselor’s only goal is to help you make improvements. 

How can credit counseling help me?

Nonprofit credit counseling is one of the only services available that includes free or low-cost advising from a financial professional. In other words, it’s one of the only ways you can get objective, expert-level financial advice from someone who isn’t doing things like selling you investment products or encouraging you to apply for loans. 

Here’s an overview of the main benefits you get from credit counseling:

  • Confidential appointments with a financial professional.
  • Free, personalized advice on how to improve your credit and your budget, and how to pay off debt.
  • Help with pulling and reading your credit reports.
  • Free and low-cost webinars and workshops that cover all areas of finance, including how to qualify for special homebuyer programs.

Next steps: Start credit counseling today

When it comes to improving your credit and finances, nonprofit credit counseling can make all the difference. Whether you’re looking to pay off credit card debt, buy your first home or choose the best student loans, there’s no time like the present to get started. All it takes is a phone call or a few clicks to schedule an appointment with an NFCC-certified credit counselor and start making progress toward your goals today.

  • Talk one-on-one in a confidential setting with an expert who can help and has your best interests in mind
  • Receive education both during the session and with additional resources provided for your future use
  • Get connected with other local organizations for additional help and resources, if needed
  • Walk away with an actionable plan to achieve your financial goals
  • Learn more about your credit report and score, and identify opportunities to improve
  • If credit card debt is a major concern, learn more about the debt management plan and have an opportunity to start one

Getting Started with Credit Counseling
Credit counseling is free, easy, and can make a major positive difference to your financial standing. Whether it is the first step in your journey and leads to another service, like a DMP, or it is the only help you need to make positive financial changes, consider getting started soon. Remember that you should only work with counselors from accredited, nonprofit organizations. The NFCC can connect you with counselors from our trusted member organizations. Just get started here.

Up Next

Clear Choices: Get the Best Buys on Eyeglasses and Contacts

Clear Choices: Get the Best Buys on Eyeglasses and Contacts

Consumers' CheckbookApril 14, 2026

To see properly, about 75 percent of Americans have the privilege of either wearing specs (hey, four eyes!) or affixing little slivers of plastic onto their eyeballs. Luckily, glasses and contacts have come a long way. The 75 percent of American adults who need some sort of corrective eyewear can choose between comfortable contacts and thousands of fashionable frames. Still, shopping for new specs and contacts can be a major hassle. Thankfully, glasses and contacts have come a long way. Those of us who need corrective eyewear can choose between comfortable contacts and thousands of fashionable frames. Still, shopping for new specs and contacts can be a hassle and nonprofit Consumers’ Checkbook’s undercover shopping research indicates that many stores have prices that are off the charts. You’ll want to choose retailers carefully. Don’t let a doctor’s office gatekeep your eyewear options. Once you get a vision test, you have the right to take your prescription for glasses or contacts anywhere else to buy them. Under federal law, after completing an eye exam that includes a refraction (vision test), an ophthalmologist or optometrist must provide the patient with a copy of their prescription for lenses, whether they ask for it or...

Read More
Many Taxpayers Can Get Free Help Preparing and Filing Their Returns

Many Taxpayers Can Get Free Help Preparing and Filing Their Returns

Consumers' CheckbookMarch 24, 2026

Each year, Americans spend an average of $240 to prepare and file their tax returns, according to the IRS Taxpayer Advocate Service. And the process is so complicated that about one million taxpayers who could get money back don’t file returns, allowing the U.S. Treasury to keep more than $1 billion of their money. Many taxpayers can get free assistance preparing and filing their returns. Below is a rundown of available services, who is eligible, and how to avoid scams. All these prep-and-filing options require you to track down documents and then enter or verify data. Fortunately, most websites are easy to navigate. Instead of filling out complicated forms and instructions, you answer simple questions, such as “Do you have children living with you?” and “Did you have interest income from a bank, savings, or investment account?” Don’t search the internet using terms such as “file my taxes for free”—you could end up on the website of a scammer or the site of a preparer that will charge you hefty fees. Use the links provided in this article, or go to irs.gov. Some Consumers Can Get Free Services from Tax Prep Companies Several tax-prep companies provide free online resources for...

Read More
Why Your Car Insurance Cares About Your Credit Card Balance

Why Your Car Insurance Cares About Your Credit Card Balance

Bruce McClary, NFCCMarch 5, 2026

When your auto insurance renewal arrives and the premium has jumped, your first thought is probably to check your driving record. Did I get a speeding ticket? Was I in a fender bender? For many drivers, the driving record is completely clean. The real culprit behind the rate hike is hiding in their wallet: a high credit card balance or a medical bill that recently went to collections. While lawmakers across several states are currently debating legislation to change how insurance companies price their policies, millions of drivers nationwide are already caught in a frustrating financial loop where their credit history dictates their daily cost of living. The Invisible Score: Traditional Credit vs. Insurance Scores Most of us are familiar with standard credit scores. Lenders use them to predict a very specific outcome: how likely you are to repay borrowed money. Auto insurers, however, look at a different metric called a Credit-Based Insurance Score (CBIS). Instead of predicting loan default, a CBIS uses data from your credit report to predict how likely you are to file an insurance claim. Insurers argue that statistically, lower credit scores correlate with a higher volume of claims. The problem? The data points that damage...

Read More

Get free financial tools and updates.

Sign Up!
CTA featured image