FAQ's
 Why can't I negotiate directly
with my creditors?
In very limited cases, individuals have been able to negotiate
directly with creditors to arrange lower monthly payments
or lower interest payments. This is not an easy task and
many individuals become more frustrated when creditors
will not work with them. In cases where individuals are
successful, the benefits are minimal and are limited to
a period of time as short as 3 months.
The Credit Network
is an experienced 501c3 non-profit organization that specializes
in debt counseling. We currently work with over 750 institutions
to secure benefits for clients like yourself. These
benefits include: lowered monthly payments, lowered interest
rates, stopped late charges, and waived over-the-limit
fees.
The Credit Network
negotiates on your behalf to secure the best benefits
possible. These benefits are almost always better than
what you could negotiate on your own, and will be honored
as long as you remain on the program and make your payments
on-time. Start Today!
Apply Online
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Why can I not just keep paying my creditors on
my own?
The best way to explain why you want to work with The
Credit Network is with an example.
Let’s say you have a credit card with
ABC Bank. You have an $8,000 balance at 19.9% interest,
and a minimum monthly payment of $200 (2.5% of outstanding
balance). Let’s assume you will not put any additional
charges on this account, never miss a payment, and never
be charged any type of late payment or over the limit
fee. It would take you over 30 years to pay this account
off and you would pay nearly $20,000 in interest. This
means you would pay back approximately $28,000 for an
$8,000 current balance.
With The Credit Network,
let’s assume we are able to secure a lower interest rate
of 8% and you are able to continue paying your monthly
payment of $200. Through negotiations we were also able
to stop any over the limit fees or late payment fees.
It would take you approximately 4 years to pay this account
off and you would pay approximately $1,300 in interest.
This means you would pay back a total of $9,300.
The Credit Network
would provide an opportunity for you to pay your account
off 26 years earlier and save you almost $19,000 in interest
payments.
We are sure you can find better places
to spend $19,000 than to give it to your credit card company.
Start Today! Apply Online
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How much will this cost?
Due to the fact that The Credit Network
is a non-profit organization, we do not charge any advanced
fees for our service. We do request that clients make
a monthly contribution to our organization to cover the
costs involved in handling their accounts on a monthly
basis. As a non-profit organization, The Credit
Network depends on these small contributions
to meet our operating costs. Our clients find that their
increased cash flow from lower monthly payments, interest
rate reductions and stopped late charges more than covers
the cost of the monthly contribution.Start
Today! Apply Online
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How will this affect my credit
rating?
That depends on the existing condition of your credit
report/credit rating. If your credit rating is currently
in excellent standing, then it is possible that going
on any type of debt management or credit counseling program
will temporarily affect your rating. Some creditors will
report that you are working with a debt management or
credit counseling organization. The
Credit Network cannot
guarantee how a future creditor will interpret this information,
but we do believe that it shows you are committed to
paying your debt in full.
If your credit rating is less than perfect, it may reflect
many types of negative information such as past due,
missed or late payments, collections or charge-offs.
In these situations,. Once The Credit
Network negotiates
with your creditors, and contract agreements are signed,
you now have a foundation for financial recovery. Now
it’s up to you to honor the contracts with your
creditors and make your payments on-time. After one or
more consecutive payments most creditors will re-age
your account. This means they will report your accounts
as current. Any action taken to decrease debt and improve
your debt to income ratio can over a period of time can
help to improve your credit rating.
Start
Today! Apply Online
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Can I pay more than my monthly minimum amount?
YES. You have two options for increasing the amount you
pay each month. If you have an increase in your monthly
cash flow, such as a pay increase, you can notify your
customer service representative and increase your minimum
payment amounts for any number of accounts. Your customer
service representative would recalculate your new monthly
payment. If you periodically have additional money to
send, you can notify your customer service representative
as to what account (s) you wish to apply it to. This additional
payment will not change your minimum monthly payment.
Start Today! Apply Online
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After I pay off one account, can I pay less?
YES. You always have the option of decreasing your monthly
payment by the amount no longer owed or transferring the
entire amount (or a portion) to another account. The
Credit Network will always recommend transferring
the payment to the account with the highest interest rate.
We strongly encourage our clients to continue paying the
same monthly amount when ever possible. This option will
increase the amount paid to principle, decrease the amount
paid to interest, and pay off your debt in less time.
Start Today! Apply Online
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Will I still receive harassing phone calls?
It is possible that during the first month of contract
negotiations your creditors may contact you. In most cases,
it takes some time for all appropriate departments within
a credit card company to be informed of your participation
in our program. Please remember, your creditors have only
one objective, to get paid. Until negotiations are finalized,
contracts signed, and first payment received, the creditor
may call you. If you do receive calls from your creditors
you need only to inform them that you are working with
The Credit Network and give them the
name and number of your Financial Consultant or Customer
Service Representative. They will confirm your participation
in the program and answer any questions they may have.
If you get a harassing call from a collection
agency that is not part of your creditor’s company, we
will provide you with a cease and desist letter. Third
party collection agencies must obey this letter according
to the Fair Debt Collection Practices Act. Make sure you
tell your Financial Consultant or Customer Service Representative
if you receive any such calls. Start
Today! Apply Online
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Can you repair my credit report/rating?
NO. Simply stated, only time will repair your credit rating.
What The Credit Network can do is create a foundation
for financial freedom. This is accomplished by negotiating
with your creditors to reduce minimum payments, reduce
or eliminate interest rates, stop over the limit fees,
and stop late payment fees. Once this has been accomplished,
it will be your responsibility to ensure that the agreed
upon payments are made in full and on time. If you are
able to meet these responsibilities your credit rating
will improve as your debt decreases and your debt-to-income
ratio improves. Don’t be fooled by any company that promises
it can erase or fix bad credit. Many people have paid
hundreds and even thousands of dollars to “fix” their
credit report. Remember, only time will repair your credit
rating.
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