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Established Contributor
thelethargicage
Posts: 640
Registered: ‎09-19-2012
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"Payments managed by financial counseling program" = automatic denial

Having this little comment on one of your cards is worse than having multiple charge-offs.  It will get you automatic denials from Amex, Chase, Barclaycard, etc (pretty much any prime lender, although I'm not sure if Barclaycard qualifies as prime).

 

Fortunately, it's easy to dispute it and get it removed from your CRs once the card is paid off.


"The family who apps together files for bankruptcy together." - Dave Ramsey
Epic Contributor
Creditaddict
Posts: 21,659
Registered: ‎10-23-2007
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Re: "Payments managed by financial counseling program" = automatic denial


thelethargicage wrote:

Having this little comment on one of your cards is worse than having multiple charge-offs.  It will get you automatic denials from Amex, Chase, Barclaycard, etc (pretty much any prime lender, although I'm not sure if Barclaycard qualifies as prime).

 

Fortunately, it's easy to dispute it and get it removed from your CRs once the card is paid off.


it shouldn't effect your score though.

The point is you are agreeing to not open and have credit WHILE in this program.  But once paid off, then yes, you should be good as new.

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
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Established Contributor
thelethargicage
Posts: 640
Registered: ‎09-19-2012
0

Re: "Payments managed by financial counseling program" = automatic denial


Creditaddict wrote:

thelethargicage wrote:

Having this little comment on one of your cards is worse than having multiple charge-offs.  It will get you automatic denials from Amex, Chase, Barclaycard, etc (pretty much any prime lender, although I'm not sure if Barclaycard qualifies as prime).

 

Fortunately, it's easy to dispute it and get it removed from your CRs once the card is paid off.


it shouldn't effect your score though.

The point is you are agreeing to not open and have credit WHILE in this program.  But once paid off, then yes, you should be good as new.


Good point.  It definitely doesn't affect your score.  I reconned a BarclayCard a couple months ago (Sallie Mae), and the analyst actually told me, "Everything looks perfect, but our policy won't allow me to issue the card because of that comment".


"The family who apps together files for bankruptcy together." - Dave Ramsey
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HiLine
Posts: 3,088
Registered: ‎10-19-2012
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Re: "Payments managed by financial counseling program" = automatic denial

What does financial counseling mean? Do you get a 3rd party to manage your credit card payments?

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guiness56
Posts: 22,406
Registered: ‎01-17-2008
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Re: "Payments managed by financial counseling program" = automatic denial

[ Edited ]

Debt Management Program.

 

Typically, they can get you lower interest rates and lower payments while going through them.  Many use these vs filing BK.

 

And you shouldn't have to dispute the comments, it should go away as soon as the DMP is completed.

Established Member
SJ02
Posts: 22
Registered: ‎08-22-2012
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Re: "Payments managed by financial counseling program" = automatic denial

Please don't take this as being "smart", but why would you apply for new credit if you are on a DMP?  All DMP and Hardship Loan programs specifically tell you NOT to apply for new credit just for that reason.  When the program is over that statement is removed and when you apply for new credit the lender would never know.    I just think doing it before time is asking for unnecessary heartache.  Just my opinion.  Please don't take it as an attack.  :smileyhappy:


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Valued Member
Ridewithme38
Posts: 44
Registered: ‎03-13-2014
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Re: "Payments managed by financial counseling program" = automatic denial

I have this on my credit report now.....From what i've found, the ONLY two credit card companies that will accept me are CreditOne and CapitalOne....I've app'd everyone else, but, even calling the recon lines ended with denials.

MyFico Credit Scores:
3/12/2014:Experian: 684 ~ Equifax: 701 ~ Transunion: 678
4/16/2014:Experian: 718 ~ Equifax: 691 ~ Transunion: 707
ScoreWatch:
3/27/2014: 627 ~ 4/9/2014: 645 ~ 4/10/2014: 704 ~ 4/12/2014: 688 ~ 4/14/2014: 691 4/18/2014: 636

Open: CapitalOne (8/12) $3,750, Barclay RCI Elite Rewards (4/14) $2,500, PayPal SmartConnect (11/07) $1,100, CreditOne (8/12) $650, KingSize(4/14) $500, CapitOne (3/11) $300

Gardening starting April 17st 2014 till....
Goal: 760 across the board or bust!! (I need a car)

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