If someone could please explain this to me... Okay so my husband has a score of 692 and we have been on consumer credit counseling for about 1.5 years on credit cards only and we are not behind on any other payments such as car payments, mortgage, etc. So we need to trade in my vehicle and for some reason we are now in the waiting game to get a loan and I guess I am confused because we do not have anything else negative on our report and it is almost like we have the worst credit ever because we are doing credit counseling... Any tips or suggestions??
Did they throw out the denial reasons? If not yet, you should get them soon. I'd focus on those. I'd also pull your credit reports (free annually from annualcreditreport.com). Even if you pay 100% on time, those CCs can still mark you as late because you are paying less than the original agreed to payment. Your lender could be seeing that and getting spooked.
One lender flat out denied us due to having consumer credit on our report. We have pulled our report and no late payments and only a few accounts state consumer credit counseling. All accounts state up to date and on time paying so this is really throwing us for a loop.
You are fortunate to not have any lates. Good deal. Maybe that's the lender's criteria...you can't be with groups like CCCS. I'd find another lender. I'd sit down with a local bank or CU and sit face to face and demonstrate how you can afford the car and show how you are paying off that CC debt. Some lenders get spooked because they think you'd short-change them by trying to settle on debts or negotiate a lower payment which causes them to lose money.
Have you talked to your counseling agency. When I went thru my debt management plan, I could not apply for any CC, but they had told me IF I needed to get an auto loan or house loan, to work with them...they may have some insights or know who is good to work with. I didn't get a car loan during the time I was in my DMP, but I did buy a house, no problem, but it was about 10 months before I was done.
Being in a CCCS has no effect on your FICO score and the only indication you are enrolled in one may be a comment that the CCC adds to the TL. From my own experience, lnders don't seem to be interested in the TL comments about CCCS. If a particular lender doesn't like the CCCS comment, they will be others that don't care. I would be very careful about applying for any credit while in a CCCS since some companies (BofA) could remove you from the program if they see any new credit. That happened to me and it led to my only derog which will remain on my CR for the full 7 years. Don't expect any mercy from BofA.
Second that (BOFA)...they are now the only baddie left on my report...and it was while I was setting up the debt management plan...seven years ago, will fall off in a few months. Tried goodwill, etc. I was late (it wasn even bofa then) with that card, and they recommended the dmp...but to no avail could I get it removed...it wasn't the cccs's fault, I was late on the card going into it.