CreditAssociates Debt Relief: 2025 Review

Written by
Michelle Clardie
Edited by
Aylea Wilkins
Updated on January 21, 2025
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CreditAssociates is an established debt relief company with straightforward plans to help customers reduce their total debt. If you are going through a financial hardship, CreditAssociates can negotiate with your creditors to settle your debt for less than you owe. There are no upfront fees for this service. Instead, CreditAssociates earns a fee when it successfully negotiates a settlement.

With straightforward service offerings, helpful consultants and thousands of positive reviews, CreditAssociates is among the best debt relief companies available to consumers. New customers receive a free consultation to confirm eligibility and discuss potential debt savings.

It is important to understand that debt settlement can take two or three years and severely damage your credit score. Before enrolling with any debt relief company, review the pros and cons of debt relief programs to determine if this is the best path forward for you.

CreditAssociates Debt Relief
Best for straightforward services

CreditAssociates Debt Relief

4.5
Bankrate Score

  • CreditAssociates is an accredited debt relief company focusing solely on debt settlement to simplify the debt relief process. While it may not offer as many services as its competitors, customers appreciate the informative consultations, friendly service and no-nonsense settlement plans, as evidenced by thousands of positive reviews.

    • Minimum debt required: $10,000
    • Time frame: 24 to 36 months
    • Fees: 25 percent of enrolled debt

Types of debt settled

CreditAssociates offers a free consultation to confirm which debts it can help you with. The website specifically offers help with credit cards, medical bills and business debts, but services may also include any unsecured debt (loans that don’t require you to use your home or any other asset as collateral), such as:  

  • Business debts

  • Collections

  • Credit card debt

  • Medical bills

  • Personal loans

  • Private student loans 

  • Repossessions

  • Store cards

  • Unsecured lines of credit

Ineligible debts

CreditAssociates cannot settle all debts. Debts secured by collateral are explicitly excluded. While CreditAssociates does not provide a list of ineligible debts, the following debts are typically ineligible for debt settlement:  

  • Auto loans

  • Debts from lawsuits or court judgments

  • Governmental loans

  • IRS debt 

  • Mortgages or home equity loans 

  • Utility bills

  • Other secured debt

Pros and cons

Green circle with a checkmark inside

Pros

  • Accredited by multiple reputable institutions
  • Enjoys high customer service ratings
  • Partners with charities
Red circle with an X inside

Cons

  • Not available in all states
  • No additional services offered
  • Specific customer requirements are not disclosed online

CreditAssociates services

CreditAssociates communicates with your creditors in an attempt to negotiate a debt settlement. Services include: 

  • Free consultation: You'll get a free consultation with a consultant to determine if you are eligible for debt settlement services and, if so, which of your debts qualify for enrollment. 

  • Support team help: If you choose to enroll, someone from the support team will contact you to guide you through gathering documentation and managing creditors' calls.

  • Savings account: Instead of paying your creditor(s) each month, you will make monthly deposits into a special savings account. CreditAssociates claims the new monthly deposits “are typically much lower than your current credit card payments.” These funds will be used to offer lump-sum payoffs to your creditors in exchange for settling the debts and CreditAssociate’s fees for service.  

  • Progress tracker: You can track your progress through CreditAssociate’s online portal. It typically takes 24 to 36 months of payments to settle enrolled accounts.

Fees and penalties

Like most legitimate debt relief companies, CreditAssociates does not charge upfront fees. Instead, it earns 25 percent of each debt settled. 

The fee is based on the enrolled debt, rather than the settled debt. If, for example, you enroll $10,000 in credit card debt, and CreditAssociates settles the debt for $6,000, the fee would be 25 percent of the $10,000 enrolled, not 25 percent of the $4,000 forgiven. The fees are paid from the special savings account you pay into each month.

Debt settlement involves other costs. Late fees, interest and other penalties can accrue on your enrolled accounts while negotiators work toward settlements, increasing the total amounts owed.

Credit score consequences

Be prepared for your credit score to drop when you begin working with any debt settlement company. Debt settlement relies on using your inability to repay the debt as leverage for having some of the debt forgiven. You won't make any payments toward your enrolled debts while you’re in the program. These missed payments will be reported to the credit bureaus, negatively impacting your score. 

CreditAssociates acknowledges that “your credit will suffer while you work through and recover from your financial difficulties.” This credit score hit can impact your ability to qualify for new debts, like an auto loan, student loan or mortgage. So, if you plan to apply for a loan in the next few years, you may want to consider an alternative to debt settlement.

Risks of debt settlement

While settlement provides a way to get out of debt without paying the full amount due, there are several risks of debt settlement to consider, such as:

  • No guarantees: Your creditors are under no obligation to negotiate, which could leave you worse off than when you started.

  • Lengthy process: it can take two or three years to complete the process.

  • Long-term credit impact: The settlement stays on your credit report for many years after it's done.

  • Tax liability: You may have to pay income taxes on any amount of debt forgiven. However, the IRS offers some exceptions and exclusions, so you should consult with a tax professional to determine potential liability.   

  • Total cost: You could end up paying more — when factoring in the settled debt amount, late fees and the debt settlement company’s fees — than you would have if you had paid the debt in full.  

Because of these risks, you may want to explore other debt-relief options, including:

How to qualify for debt relief with CreditAssociates

To be eligible for the CreditAssociates program, you must:

  • Enroll at least $10,000 in qualified debts

  • Prove that you are experiencing financial hardship

  • Live in one of the 42 states supported by CreditAssociates (all except Colorado, Connecticut, Minnesota, Maryland, New Jersey, Pennsylvania, Vermont and Wyoming)

Customer experience and reviews

Review information accurate as of January 17, 2025.

CreditAssociates has many positive reviews, praising the friendly and helpful consultants who explain the service. It has an A+ Better Business Bureau (BBB) rating and an average of 4.08 out of 5 stars.

One notable complaint is that CreditAssociates continues to follow up after the initial discussion, to the point of irritating some potential customers. 

It is common to see negative reviews relating to timeframes and perceived inaction for debt relief services. Sometimes, customers are surprised when their credit score goes down during the settlement process. In others, customers are disappointed with how long the process takes. It is particularly upsetting for customers when creditors refuse to settle.   

Accreditations

CreditAssociates holds the following accreditations and certifications:

  • Accredited by the Better Business Bureau (BBB)

  • Accredited member of the American Association For Debt Resolution (AADR)

  • Certified by the International Association of Professional Debt Arbitrators (IAPDA) 

How to contact CreditAssociates

Phone: 866-914-1478

Operating hours: 

  • Monday through Friday: 7 a.m. to 11 p.m. CST

  • Saturday: 8:00 a.m. to 8:00 p.m. CST

Address: 5050 Quorum Drive, Suite 700, Dallas, TX, 75254

Fax: 877-316-4615

Email: clientservice@creditassociates.com

Social media:

Frequently asked questions

How Bankrate rates CreditAssociates

Overall Score 4.5 Explanation
Availability 4.3 The minimum debt to use CreditAssociates is higher than some competitors.
Affordability 4.6 Closing fees are higher than some options, but the lack of other fees evens things out.
Customer experience 4.2 CreditAssociates offers weekend hours and many customer service options.
Company reputation 5.0 CreditAssociates does not have any open complaints.
Stability 4.5 CreditAssociates has association memberships and has been in business for several years.

Methodology

To rate debt relief services, Bankrate considers 15 factors. These factors include minimum debt allowed, what fees are charged, whether there are unresolved complaints and if the company is accredited. Categories that the services are rated on include:

  • Availability: Availability is assessed based on the minimum debt balance required, types of eligible debt and whether the company provides free credit counseling.
  • Affordability: Affordability is assessed based on associated fees and whether the company specifies money-back guarantee terms.
  • Customer experience: Customer experience is assessed based on website usability and features, customer support options and hours of operation.
  • Company reputation: Company reputation is determined by assessing complaints with regulatory agencies, like the Federal Trade Commission and Consumer Financial Protection Bureau.
  • Stability: Stability ratings are based on how long the company has been in business and whether it maintains membership with a professional trade association.