01-21-2013 04:20 PM
First off - a quick summary on my financial situation.. I lived stupidly for many years, and racked up ~$118k in unsecured debt. I started getting serious about paying down the debt in 2008, and since then have paid down the unsecured debt to $86k, plus ~$10k that has been bundled into a 401k loan and a vehicle refinance (yeah, stupid move, but it moved a ~19% interest rate credit card to a 4.4% 48-mo fixed-everything loan..) In any case, I've never missed a payment or paid less than the minimum, have a good job with good income, but just want to get this debt paid off quicker. I've called my creditors, and none of them are interested in negotiating with me.. a few reps have even straight-out said that if I stopped paying for a few months, they'd be happy to help, but that they can't do anything if I am current. Annoying!
In any case, down to some questions:
1) My primary bank is Wells Fargo, and I have two accounts with them totalling ~$28k that would go into the DMP. I also have my checking, savings, and mortgage with them.. will entering a DMP damage any of the other accounts? Should I move my checking elsewhere first?
1a) I also have a credit card with Wells Fargo that I use for everyday expenses at places that don't accept Amex.. it is paid in full each month. Will I need to close that?
2) I have three cards with Amex right now - two charge cards (one for everyday expenses, and one for business expenses) that are both paid in full each month, and then an old Blue Cash card with a ~$10k balance on it. If I enter the Blue Cash card into the DMP, will I be able to keep the other accounts open? Or will Amex see "DMP" and automatically close everything else out on me?
3) The only things I could possibly need credit for in the DMP period would be a mortgage or auto loan.. my understanding is that both of those are doable, as long as everything besides the DMP status is good. Has that been the experience that people have had?
Appreciate any thoughts/opinions/etc!
01-21-2013 04:30 PM
You will most likely get conflicting answers.
Some have had no issues with a DMP, while others have had nothing but issues.
Amex is in there own world in my opinion, you really just never know how they will react. Any other CC's you have may also react to a DMP.
Car loans, Mortgage loans, are installment loans and at the same time different types of installment loans.
When you apply for a Car loan their requirements are no where as strict as a Mortgage loan. While you feel a DMP is not an issue when applying for either of them I can tell you that it is based on the requirements of the Lender issuing the loan.
01-21-2013 06:12 PM
Appreciate the reply! Yeah, sure does seem to be a mixed bag of results out there.. sheesh! I'll have to ask the DMP companies some detailed questions too.. looks like I've got two local to me that have a good reputation at least.
01-22-2013 08:18 AM
Just got a car loan through ford, no question on the DMP. With NFCU, it was an issue. They wanted a letter from DMP agreeing to the car loan, which was provided with no problem.
The dmp I use is just awesome. Come June, since I'm 75% finished, I will take over the balance myself. Every payment is reporting correctly on the cra's. Happy with the process. Send me a pm if you want their name. I'm close to paying off 5 of the accounts since they're now so small.
As far as AMEX, YMMV, I've heard of them shutting the other card down.
01-24-2013 10:54 AM
I did the DMP thing about 3 years ago and it worked out great. The only thing is that not all your creditors may approve of it. Also, know that once you enter into a program like this, all of your credit cards will be closed down by the creditors and it took my about a year and half to get a new credit card.
01-26-2013 08:24 AM
A few years ago I had used a DMP and it worked out great. I have had 0 issues since then getting credit. Even CCCs who I had a card in DMP with send me offers.
On getting new credit while in DMP - forget it if you have a BofA product in the program. That lead to my only major derog which lasted 7 years on my CR.
10-15-2013 06:10 PM
I am very interested in knowing what DMP you went with, I'm in a situation where I can't handle my cards any more. Up to this point I've been on time with all of my payments, but that wont last much longer. How much lower (%) were they able to lower your payments? Thank you for your help.
10-16-2013 02:50 AM
I ended up getting a decent raise, and then was able to get a personal loan at a reasonable rate which moved the bulk of my payments to a fixed-rate fixed-term loan. So, I didn't end up going the DMP route.
Best of luck with whatever you choose!
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.