Become a Credit Counselor: Process and Practice
This webpage offers tips and information on how to become a credit counselor with confidence. There is guidance on how to make a credit counseling endeavor successful, and a story about an individual who used the process to best advantage.
Understanding the Life Stage You Serve When You Become a Credit Counselor
If you’re wanting to find out how to be a credit counselor, it’s important to understand the limited focus of that role. Credit counselors take responsibility to help individuals increase their credit scores and recover from debt problems. A trained credit coach might look at certain areas of a person’s financial situation, specifically those parts related to credit and debt.
Certified Personal Financial Wellness Consultants, on the other hand, are trained and given resources to serve clients across a broad scope of financial counseling areas. NFEC Financial Coaches can work with clients to meet the demands of a variety of financial life stages. They are empowered to help people tackle their financial challenges now, and work toward financial health for the future. A qualified NFEC Financial Coach reviews clients’ circumstances over time and works with them to adjust their financial planning accordingly.
Become a Credit Counselor Step 1: Training for Certification
Angela Stafford had just completed her undergraduate degree in accounting. She decided to find out how to be a credit counselor because she felt her calling was helping others. Her first goal, then, was to obtain the additional training she needed to get certified and become a credit counselor. This step was deeply important.
Angela’s background informed her that she would need more than just to learn about managing personal finances. She would have to study human behavior, how to counsel and educate people for best effect, and any regulations guiding the field. Angela was lucky enough to find a credit counseling certification program that met these criteria.
Once Angela completed the debt coaching program requirements, she would be qualified to become a credit counselor who complied with nationwide standards. She would gain credibility and increase client confidence in her ability, which would build momentum to move forward with her venture.
How to be a Credit Counselor Step 2: Experiential Training
Shortly after Angela enrolled in the course, she realized she also would need to get hands-on experience with real clients. Part of the answer to, “How do you become a licensed credit counselor?” is “Put your learning into action.”
Financial counseling requires unique skills because every client is different in terms of psychological, habitual, and situational connections with money. This difference meant that Angela would be challenged to practice counseling with people from a variety of circumstances.
Angela also knew she shouldn’t start out doing credit counseling on her own. She needed an expert supervisor to look over her work and make sure she stayed on track.
Become a Credit Counselor Step 3: Systematization, Process, Resources
Discovering how to become a credit counselor starts with education, then moves on to practicum and documentation of client outcomes. After Angela got that far, she then needed to find high-quality educational resources and develop client management systems.
Angela sought a software package that would organize her clients’ information – bank account information, credit profiles, insurance coverages, retirement accounts, etc. – and enable timely reminders to guide her communications and relationships with clients. Some research into job descriptions for credit counselors told Angela that there was powerful credit counseling software available.
In addition to organization, Angela wanted to generate full financial plans for clients, giving them clear actions to reach goals. The robust software system empowered her to do that and more.
How do You Become a Licensed Credit Counselor Step 4: Implementation Plan – Work for Company vs. Start a Business
Angela was almost done with the training program, and next she had to choose a path for how to be a credit counselor when she was done. Would she work for a credit counseling company, or start a small business? She settled on working for a firm at first, gaining experience and honing her skills, and then branching out on her own.
Angela searched Jobs.com and other sites and found several open positions with credit counseling firms. She started preparing herself to meet the qualifications they listed, such as by documenting her results with practice clients and designing case studies. She was careful to comply with privacy and confidential guidelines in the process. Taking these steps would help her meet the criteria set forth by mycreditunion.gov regarding the integrity of credit counselors.
These careful case studies would show prospective employers that Angela had the skills and mastery to become a credit counselor with top qualifications.
How to be a Credit Counselor Step 5: Passion for Effective Service
Angela had reached the step in the process to become a credit counselor where she could help her clients reach their goals. Now she had to make sure the people she was serving would remain on track after hitting roadblocks, and cheer them on when they were successful.
It caused Angela frustration to learn that not all her clients saw positive outcomes. However, sometimes her efforts did make a difference, and then all her hard work paid off. The rewarding feeling Angela had when a client went from deep anxiety to real progress was infinite.
Angela developed a strong commitment to focus on helping people increase financial wellness, aligned with her credentials for how to be a credit counselor with maximum effect. She applied herself to ongoing professional development to stay abreast of updates in her field.