Top 10 Loan Counselor Certifications

Certifications are important for loan counselors in the job market because they demonstrate a level of expertise and knowledge on the subject. A certification can help a loan counselor to stand out from the competition, as it proves that they have taken time to study and understand the principles of loan counseling. It also shows potential employers that the loan counselor is committed to their profession and has a higher level of expertise than those without certifications. Finally, certifications often come with continuing education requirements, which helps to ensure that loan counselors stay up-to-date with changes in the industry.

This article reviews some of the top certifications for Loan Counselors and explains how they can help to further a Loan Counselor's career.

What are Loan Counselor Certifications?

Loan counselor certification is a program designed to provide counselors with the knowledge and skills necessary to effectively counsel potential borrowers on their loan options. It helps counselors understand the different types of loans available, how to help borrowers compare those loans, and how to advise them on the best option for their individual needs. Loan counselors are also trained in financial literacy, credit counseling, budgeting, debt management, and other related topics. With this certification, loan counselors can better serve clients by providing comprehensive advice about their loan options and helping them make informed decisions about their finances. Additionally, having loan counselor certification can increase a person's credibility as a financial advisor and open up career opportunities in the banking or lending industry.

Pro Tip: When looking for a loan counselor certification, make sure to research the accreditation status of the certifying body. Accreditation ensures that the certification program meets standards of quality and is recognized by industry professionals.

Related: What does a Loan Counselor do?

Top 10 Loan Counselor Certifications

Here’s our list of the best certifications available to Loan Counselors today.

1. Certified Loan Counselor (CLC)

A Certified Loan Counselor (CLC) is a professional who has been trained and certified to provide advice and assistance on loan-related matters. CLCs are knowledgeable about the various types of loans available, the terms and conditions associated with them, and the legal requirements for obtaining a loan. They can help borrowers understand their options and make informed decisions.

The certification process typically requires completion of an approved course or program, passing an exam, and meeting any other requirements set by the certifying organization. The length of time it takes to become certified depends on the specific program chosen and how quickly the individual completes all required steps.

To get certified as a CLC, individuals must first find a course or program that meets their needs. Many universities offer courses in loan counseling, as do some professional organizations such as the National Foundation for Credit Counseling (NFCC). Once they have selected a program, individuals will need to complete all required steps before taking the certification exam.

The cost of becoming certified varies depending on which program is chosen. For example, NFCC offers its Loan Counselor Certification Program for $395 plus fees for materials. Other programs may be more or less expensive depending on their length and content.

2. Certified Mortgage Planning Specialist (CMPS)

A Certified Mortgage Planning Specialist (CMPS) is a professional designation awarded to mortgage professionals who have completed an advanced course of study in the areas of loan origination, mortgage planning, and financial analysis. The CMPS certification is offered by the National Association of Mortgage Brokers (NAMB) and requires a minimum of 30 hours of continuing education.

To become a CMPS, individuals must first complete a comprehensive online course that covers topics such as mortgage lending laws, ethical practices, loan processing, risk management and more. After completing the course, individuals must pass an exam with a score of at least 70%. Once certified, CMPSs are required to maintain their certification by completing at least 15 hours of continuing education every two years.

The cost to become a CMPS varies depending on the provider offering the course. Generally speaking, the cost ranges from $400-$800 for the initial training and exam fee. Additionally, there may be additional fees associated with any required continuing education courses.

3. Certified Credit Consultant (CCC)

A Certified Credit Consultant (CCC) is a professional designation that recognizes individuals who have achieved a high level of knowledge and expertise in the field of credit counseling. The CCC designation is granted by the National Association of Credit Counseling (NACC), an organization dedicated to promoting financial literacy and responsible credit management.

To become a Certified Credit Consultant, applicants must complete an approved training program and pass a comprehensive exam. The NACC offers several training programs, including online courses, webinars, and in-person seminars. These courses cover topics such as budgeting, debt management, credit repair, bankruptcy laws, and consumer protection laws.

The cost of becoming a Certified Credit Consultant varies depending on the type of training program chosen. Online courses typically cost between $100 and $200; webinars range from $50 to $100; and in-person seminars can cost up to $500 or more. In addition to these fees, applicants must also pay for the certification exam ($150).

In total, it usually takes around 6 months to become a Certified Credit Consultant. This includes time spent completing the required coursework as well as studying for the certification exam.

4. Accredited Financial Counselor (AFC)

Accredited Financial Counselor (AFC) is a professional certification program offered by the Association for Financial Counseling and Planning Education (AFCPE). The AFC certification is designed to equip financial counselors with the knowledge, skills, and abilities to help individuals and families make sound financial decisions.

The AFC certification requires completion of an approved training program, followed by a comprehensive exam. Training programs can be completed in-person or online. In-person programs are typically offered through universities or other educational institutions, while online programs are available through several providers. The length of the training program varies depending on the provider, but most range from 12 to 18 months.

To qualify for the exam, applicants must have a bachelor’s degree from an accredited college or university and three years of experience in personal finance counseling or related fields. Applicants must also complete an application form and submit it to the AFCPE along with proof of their education and experience.

The cost of the certification process varies depending on the provider chosen for training. Most providers charge between $1,000 and $2,500 for their courses. In addition to this fee, applicants must pay a $200 application fee when submitting their application to the AFCPE. After passing the exam, there is an annual renewal fee of $75 to maintain active status as an Accredited Financial Counselor.

5. National Foundation for Credit Counseling (NFCC) Certification

The National Foundation for Credit Counseling (NFCC) is a non-profit organization that provides certification to credit counselors and debt management professionals. The NFCC Certification is a rigorous program that tests the knowledge, skills, and abilities of credit counselors and debt management professionals.

To receive the NFCC Certification, applicants must pass an exam that covers topics such as consumer credit law, financial counseling techniques, budgeting and debt management strategies, and more. The exam consists of 100 multiple-choice questions and must be completed within two hours. Applicants must also complete a minimum of 30 hours of approved continuing education courses every three years in order to maintain their certification status.

In order to take the NFCC Certification Exam, applicants must first register with the NFCC. Registration can be done online or by mail. The cost for registration is $175 for members of the NFCC or $225 for non-members. Once registration is complete, applicants will receive an authorization letter from the NFCC which will include instructions on how to schedule the exam at a testing center near them.

The entire process of obtaining the NFCC Certification typically takes between 4-6 weeks depending on when an applicant registers for the exam and when they are able to take it at a testing center near them.

6. HUD-Approved Housing Counselor Certification

HUD-Approved Housing Counselor Certification is a certification program offered by the U.S. Department of Housing and Urban Development (HUD) to help ensure that housing counselors are qualified to provide housing counseling services. The certification program is designed to ensure that housing counselors have the knowledge, skills, and abilities necessary to provide quality counseling services.

The certification process includes completion of an approved training course, passing a HUD-administered examination, and submitting an application for approval from HUD. The training course typically takes between 40 and 60 hours to complete, depending on the type of training chosen. After completing the training course, applicants must pass a HUD-administered examination in order to be certified as a HUD-approved housing counselor.

The cost of the certification program varies depending on the type of training chosen and other factors such as location. Generally speaking, however, it costs approximately $500-$1,000 for the entire certification process including both the training course and examination fees.

In order to become certified as a HUD-approved housing counselor, applicants must submit an application for approval from HUD along with all required documents such as proof of completion of approved training courses and passing scores on exams taken during the training period. Once approved by HUD, applicants will receive their official certificate which can then be used when applying for jobs or providing counseling services in their communities.

7. Financial Counseling Certification Board (FCCB)

The Financial Counseling Certification Board (FCCB) is a non-profit organization that provides certification to financial counselors. It is the leading certification organization for financial counselors in the United States.

The FCCB offers two certifications: Certified Financial Counselor (CFC) and Accredited Financial Counselor (AFC). To obtain either of these certifications, applicants must first meet certain educational and experience requirements, as well as pass an exam.

The CFC certification requires applicants to have a Bachelor's degree in finance or a related field, plus two years of counseling experience or one year of counseling experience plus 30 hours of continuing education credits. The AFC certification requires applicants to have a Bachelor's degree in any field plus two years of counseling experience or one year of counseling experience plus 30 hours of continuing education credits.

It typically takes six months to one year to obtain either the CFC or AFC certification. During this period, applicants must complete their educational and/or work requirements, register for the exam, study for the exam, and take the exam.

To get certified by the FCCB, applicants must submit an application form along with supporting documents such as transcripts, proof of work experience, and proof of continuing education credits. The cost for each certification varies depending on the type of application submitted; however, it usually ranges from $250 - $450 USD.

8. Association of Financial Counseling and Planning Education (AFCPE)

The Association for Financial Counseling and Planning Education (AFCPE) is a professional organization that provides education, training, and certification in the field of financial counseling and planning. The AFCPE is dedicated to advancing the knowledge and skills of financial counselors and planners by providing quality educational programs, research opportunities, professional development resources, and networking opportunities.

The AFCPE offers a Certified Financial Counselor (CFC) credential which requires applicants to have a bachelor's degree or higher in any field along with two years of work experience in the financial services industry. Applicants must also complete an approved program of study from an accredited college or university. After completing the required coursework, applicants must pass an exam administered by the AFCPE to receive their CFC designation.

It typically takes between six months to one year to complete all requirements for the CFC credential. The cost of obtaining the CFC credential varies depending on whether you are taking courses online or in-person. Online courses typically cost between $1,000-$2,000 while in-person courses can range from $3,000-$4,000. Additionally, there is a fee associated with taking the exam which is currently $225 for members and $325 for non-members.

9. Certified Consumer Credit Professional (CCCP)

Certified Consumer Credit Professional (CCCP) is a professional certification offered by the National Association of Credit Management (NACM). It is designed to recognize those individuals who have achieved a high level of knowledge and skill in the field of consumer credit. The CCCP certification validates an individual’s ability to provide sound advice on consumer credit issues, including debt management, credit counseling, and bankruptcy.

The CCCP certification requires successful completion of a comprehensive exam that covers topics such as consumer credit law, debt collection practices, bankruptcy procedures, and financial counseling. The exam consists of 150 multiple-choice questions and must be completed within two hours.

To be eligible for the CCCP certification, applicants must meet certain educational requirements. These include at least three years of experience in the consumer credit industry or completion of a college-level course related to consumer credit or financial services. Additionally, applicants must pass a criminal background check prior to taking the exam.

The cost of obtaining the CCCP certification varies depending on your membership status with NACM. For non-members, it costs $350 for the application fee and $150 for the examination fee; for members, it costs $250 for the application fee and $100 for the examination fee.

10. Certified Student Loan Professional (CSLP)

Certified Student Loan Professional (CSLP) is a certification program designed to help professionals in the student loan industry stay up-to-date on the latest trends and regulations. The CSLP designation is awarded by the National Association of Certified Student Loan Professionals (NASL) and provides a comprehensive education in all aspects of student loan servicing.

The CSLP program consists of an online training course, which takes approximately 8 hours to complete. The course covers topics such as federal student loan regulations, repayment options, debt management, and more. After completing the course, applicants must pass an exam in order to receive their certification.

The cost of the CSLP program is $399 for members of NASL and $499 for non-members. This fee covers the cost of the online training course and exam.

In addition to providing knowledge about student loans, having a CSLP certification can also make you more attractive to potential employers in the field. It shows that you are knowledgeable about current regulations and have taken steps to stay up-to-date on industry trends.

Do You Really Need a Loan Counselor Certificate?

No, you do not need a loan counselor certificate to be successful. Many people have become successful in the loan industry without having a loan counselor certificate. Having a loan counselor certificate can be beneficial, however, as it provides recognition and validation of your knowledge and experience in the field. It can also provide you with more credibility when working with lenders or clients.

Having a loan counselor certificate can provide you with an edge over other potential candidates when applying for positions within the loan industry. This may give you access to higher-level positions and better pay than those who do not have the same certification. Additionally, having this type of certification can help to demonstrate your commitment to providing quality services in the field of lending and financial management.

When deciding if a loan counselor certificate is worth pursuing, consider your career goals and objectives first. If you are looking for long-term success in the field of lending, then obtaining a loan counselor certificate may be beneficial for you. However, if you are just starting out or only intend to work in the industry for a short period of time, then it may not be necessary to invest in such an expensive certification process.

Ultimately, whether or not you decide to pursue a loan counselor certificate is up to you and should depend on what your professional goals are. Consider all of your options carefully before making any decisions regarding certifications or training programs related to the lending industry.

Related: Loan Counselor Resume Examples

FAQs About Loan Counselor Certifications

1. How do I become a loan counselor?

Answer: To become a loan counselor, you must complete an approved loan counseling program and obtain certification from the National Foundation for Credit Counseling or other certifying body.

2. What qualifications are required to be a loan counselor?

Answer: Generally, most loan counselors need to have at least a bachelor's degree in finance, economics, or related field. Some employers may require additional certification or experience in the banking industry and/or consumer credit counseling services.

3. Are there any specific courses I need to take to become certified as a loan counselor?

Answer: Yes, most loan counseling programs include coursework that covers topics such as credit fundamentals, consumer credit laws, debt management strategies, and financial literacy. Many programs also offer specialized courses in areas such as bankruptcy counseling or foreclosure prevention services.

4. How long will it take me to become certified as a loan counselor?

Answer: The length of time it takes to obtain certification can vary depending on the program and certifying body you choose. Generally speaking, most programs can be completed within six months to one year.

5. Is there an exam I need to pass in order to become certified as a loan counselor?

Answer: Yes, the National Foundation for Credit Counseling (NFCC) requires applicants to pass its Loan Counselor Certification Exam (LCCE). This exam tests your understanding of credit principles and practices, debt management techniques, financial literacy concepts, and applicable laws and regulations in the lending industry.