Review of Americor in 2024
Americor provides debt settlement and other services to assist clients in reducing unsecured debt, including personal loans, credit cards, and medical debt. To determine if Americor is the appropriate solution for your debt issues, consider the following information.
Americor review
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How does Americor work?
Americor primarily assists consumers in negotiating large debt settlements, mainly focusing on unsecured debt such as credit card bills and personal loans. However, the company cannot assist with secured debt like auto loans or mortgages. To work with Americor's debt relief, consumers must have at least $7,500 in unsecured debt, which is similar to or slightly lower than many of its competitors.
Credit9, Americor's partner, can assist with debt consolidation loans with a maximum limit of $45,000.
How it works
Typically, debt settlement companies advise you to cease making payments on your debts and instead contribute money into a trust account. This account will subsequently be utilized to settle the amount agreed upon between the debt settlement company and your creditors.
If you stop making payments on your debts, your credit score will likely decrease, and your creditors may report your overdue payments, charge late fees and interest, and potentially take legal action against you, according to the Consumer Finance Protection Bureau.
Before negotiating with creditors, Americor clients must deposit around 25% of their debt into an escrow account.
After a settlement is reached, the funds saved in escrow are used to pay off creditors. Typically, a debt settlement company charges their fee through the same escrow account. However, the fee is not collected until after a settlement is reached and the client approves of it. According to Americor's terms and conditions, clients will only pay a fee if the company has successfully lowered their total enrolled debt.
On average, Americor's customers save 45% of their enrolled debt. The program can last anywhere from 24 to 48 months. According to their website, clients typically receive their first settlement within three to six months of joining a program.
How much does Americor cost?
The fee charged by Americor for its debt settlement service ranges from 14% to 29% of the total debt enrolled. For instance, if your enrolled debt is $20,000, your fees could range from $2,800 to $5,800. These fees are added to the amount you'll need to pay into the escrow account while Americor negotiates your debts.
Americor: Pros and cons
It's crucial to weigh the advantages and disadvantages of Americor's debt settlement program prior to enrollment.
Pros
- You can withdraw from the program at any time without being charged a penalty
- A+ rating from the Better Business Bureau (BBB)
- Also offers a debt consolidation loan option
- Using a soft credit inquiry, you can determine which offers you may qualify for without negatively impacting your credit score.
- If Americor cannot settle your debts, you do not have to pay it a fee.
Cons
- Program fee can vary by state
- Program not available in Colorado at the time of this writing
- You must have more than $7,500 in unsecured debt to qualify
- Fee is based on the total enrolled debt, not the negotiated amount
How does Americor compare?
Americor vs. National Debt Relief
CNBC Select compares Americor and National Debt Relief, two popular debt settlement companies with similar services and requirements.
Types of debt
Both Americor and National Debt Relief handle unsecured debt, such as personal loans, credit card debt, medical debt, and lines of credit. Additionally, they can assist with repossessions and collections.
Minimum/maximum debt
Americor: $7,500 and no maximum limit
National Debt Relief: $7,500 and no maximum limit
Fees
Americor: 14% to 29% of the total enrolled debt
National Debt Relief: 15% to 25% of the total enrolled debt
Both Americor and National Debt Relief deal with the same types of debt and have the same minimum debt requirement for clients. However, Americor's fees may be higher due to its maximum fee of 29% compared to National Debt Relief's 25%.
It's important to compare offers from both companies to determine the actual fee percentage, which may vary by state.
Americor vs. Pacific Debt Relief
Pacific Debt Relief is a popular debt relief company with positive reviews from the BBB. In comparison to Americor Debt Relief, Pacific Debt Relief also has high ratings.
Types of debt
Both Americor and Pacific Debt Relief provide services for unsecured debt, as well as work with repossessions and collections.
Minimum/maximum debt
Americor: $7,500 and no maximum limit
Pacific Debt Relief: $10,000 and no maximum limit
Fees
Americor: 14% to 29% of the total enrolled debt
Pacific Debt Relief: 15% to 25% of the total enrolled debt
Pacific Debt Relief has a higher minimum debt requirement ($10,000) and operates in fewer states (30) compared to Americor ($7,500 and all states except Colorado).
Is Americor legit?
Americor is a member of the American Fair Credit Council (AFCC) and has helped over 200,000 individuals alleviate the burden of over $2 billion of debt. Furthermore, Americor has an A+ rating from the BBB (Better Business Bureau).
Does Americor hurt your credit?
When you start a debt settlement program, a decrease in your credit score is predicted, according to Americor.
Debt settlement programs, such as Americor's, entail ceasing payments to creditors while they negotiate on your behalf. Since payment history accounts for 35% of your FICO score, not making payments will negatively impact your credit score.
As you pay off your settled balance, your credit score should improve over time.
How to sign up with Americor
You can apply online or call (888) 211-2660 to get started with Americor. A certified debt consultant will assess your situation.
Frequently Asked Questions (FAQs)
Why trust CNBC Select?
Our goal at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each article is the result of thorough reporting by our team of experienced writers and editors, who possess a wealth of knowledge about debt settlement products. At CNBC Select, we are committed to maintaining our journalistic standards and ethics, even though we earn a commission from our affiliate partners on many offers and links.
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