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Epic Contributor
Posts: 28,671
Registered: ‎10-23-2007
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DMP and Credit Damage?

Has anyone done DMP and pulled your reports before, during, and after?

Can you keep any of your cards open and out of the program if you choose?

What would happen if you needed a mortgage while in the middle of DMP?

Member
Posts: 17
Registered: ‎09-08-2010
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Re: DMP and Credit Damage?

I had an assessment over the phone with Take Charge America 2 days ago, so I can tell you what they told me: 

 

--the fact that you are in the program is noted on your credit report but your score is not negatively effected since your payments are being made consistently on time ***;

--you agree to not obtain any more unsecured credit but secured credit like cars or a mortgage are not part of that agreement;

--you can keep any card out of the program that you choose, and some here on this site recommend you keep your oldest, best card out.

 

****NOTE:  some people here have stated that the DMP they went through paid their accounts late and so their score did indeed go down.  Being on a DMP does not mean we can just chill -- it takes vigilance in checking statements monthly and checking with creditors to make sure they receive payment.  TCA told me they email me a statement monthly and I still receive my monthly statements from the creditors...

 

 

Epic Contributor
Posts: 28,671
Registered: ‎10-23-2007
0

Re: DMP and Credit Damage?

I recently tried to get Chase to put me into there financial hardship program and after giving here every detail of income and expenses and a 10 minute hold, she came back and said we can't help you but we would like to send you over to "blah blah" credit counseling.

 

That is the first I have ever heard of a credit company actually suggesting you put there account into a credit counseling program.

Community Leader
Epic Contributor
Posts: 26,261
Registered: ‎03-19-2007
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Re: DMP and Credit Damage?

My question with this or any DMP is simple.  Why?

What do they offer you that you cant do yourself?

You can call the creditors and make your own appeals to them.  The DMP cant do that as effectively as you can.

You can monitor your credit report, and dispute items that are inaccurate.

You can deal personally with the issues.

Sure, it requries some work on your part, such as coming to this forum and asking questions. But the DMP is not usually, in my opinion,an objective source of information that I would rely on..........

Plus, if they put restrictions on you, why agree to that?

I often wonder at the appeal to enter a DMP?  Can you share the "benefits" you have received in exchange for the fees you have paid to them?

 

 

Epic Contributor
Posts: 28,671
Registered: ‎10-23-2007
0

Re: DMP and Credit Damage?

 


RobertEG wrote:

My question with this or any DMP is simple.  Why?

What do they offer you that you cant do yourself?

You can call the creditors and make your own appeals to them.  The DMP cant do that as effectively as you can.

You can monitor your credit report, and dispute items that are inaccurate.

You can deal personally with the issues.

Sure, it requries some work on your part, such as coming to this forum and asking questions. But the DMP is not usually, in my opinion,an objective source of information that I would rely on..........

Plus, if they put restrictions on you, why agree to that?

I often wonder at the appeal to enter a DMP?  Can you share the "benefits" you have received in exchange for the fees you have paid to them?

 

 


 

I might agree that you can do it yourself if you are 1-3 months behind, the banks will usually work with you in some way, but if you are current 95% will not even talk to you about lower payments or lower interest.  The creditors already have agreements with DMP to drop the interest, which then usually drops your payment.

Now beyond that point I don't really know much about DMP so can't say personally

Super Contributor
Posts: 5,712
Registered: ‎10-06-2007
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Re: DMP and Credit Damage?

A few years ago, I completed a 5 year DMP program.  Since DMP, I had no problems getting credit at the best rates offered.  The only thing a creditor could see on your CR is that the account was managed under a CCCS which has zero effect on your FICO score.  During the program, I did get a new mortgage but since I was subprime, my rate was 7.25.  Last year I refied to the best rate my CU offered which was 4%.

 

I did leave my oldest CC out of the program when I went into DMP, not be being FICO aware but it was a gas card and I felt that my budget would be tight so I needed some credit.

 

I was not FICO aware until the last year of DMP so I don't know how it effected my score in terms of the closed accounts but IMHO since all my CCs were maxed out anyway, I suspect it didn't have any effect.

 

On the issue of reducing the interest rates on your own, IMHO it's not gonna happen.

 

A DMP could be a bidget buster since the longest you can be in the program is 5 years so your monthly payment will probably be more than you are paying now, so you must have the income to back it up.

 

One final warning is that I made the mistake of opening a Sams card during the DMP and BofA quietly dropped my from the program which lead to a 120 day late for partial payment they never contacted me until it was that late (ever heard of of CCC not calling on a late payment?).  They refused to remove the lates and I have less then 2 years to wait.  My FICO scores would be 800+ now except for BofA.  I accept 100% respsonsiblity for this in that I should have looked at my statments for carefully, which brings me to my final comment that my DMP company did what they said they would do but you have to monitor your payments and make sure they are on time and that they amounts are correct.  The DMP company won't do that for you.

 

 

03/21/2016 FICO: EQ: 772 EX:773 TU:779
Member
Posts: 17
Registered: ‎09-08-2010
0

Re: DMP and Credit Damage?

Between us, my husband and I have a shocking $70k in cc debt.  Our monthly payment will go down about $375 a month and it's projected to take 4 years to pay everything off.  I, too, hold out no hope thatr we can do the same on our own, though the DMP says it can happen.

Super Contributor
Posts: 5,712
Registered: ‎10-06-2007
0

Re: DMP and Credit Damage?


iggie394 wrote:

Between us, my husband and I have a shocking $70k in cc debt.  Our monthly payment will go down about $375 a month and it's projected to take 4 years to pay everything off.  I, too, hold out no hope thatr we can do the same on our own, though the DMP says it can happen.


The DMP program forced me to stop using credit and even though all my cards were maxed out, I still tried to get more.  Because the DMP payment was so high, it forced me into a budget which I still do today.

03/21/2016 FICO: EQ: 772 EX:773 TU:779
Established Member
Posts: 19
Registered: ‎08-19-2007
0

Re: DMP and Credit Damage?

Thanks for all the great infor marty56, can you tell me which DPM you used? I know it was 5 yrs ago but I would like to see if they are still around.
New Member
Posts: 12
Registered: ‎09-10-2010
0

Re: DMP and Credit Damage?

I am in a DMP thru my credit union and I don't have to pay any fee's.  Only one creditor reports on my credit report that I am in the program. I did try to get the OC's to work with me prior to going with the DMP some would some would not.  So far it has been eaiser for me to just work with the DMP.

 

I am with Accel/Greenpath. I don't know why they go by two different names.

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