Do HARDSHIP PROGRAMS affect your credit score?

[appstate]

I was recently laid off from my job.  I got a good sev package but I still contacted my 4 CC companies and explained to them that I was laid off.  I asked them if they could help in anyway.  I made sure to explain that I was being proactive and didn't want to fall behind on my payments.

They all gave me good programs.  No interetest for a few months.  I can't use the cards, but I don't want anyway since I'm cleaning my credit up before my wife sh*ts a brick.  

MY QUESTION: Do hardship programs hurt your credit score?  I have a 624 and I'm trying to get it up to a reasonable number.  

Message Edited by appstate on 12-11-2008 07:33 AM

[Chopbrocoli]

Well it seems like they are keeping your accounts open with no interest rate if you dont use the cards.. therefore I dont see any reason for your score to hurt. Unless you were on a DMP, that might be a different story.

[appstate]

DMP?  What's that?

[appstate]

Next time I will look at the common abbrev thread!

[Chopbrocoli]

DMP is a debt managent program offered by a credit counseling company. Another suicidal impact to the credit is the debt settlement program.

[marty56]

Being in a DMP does not avdersely affect your credit like Debt Settlemnt does since any loss in points due to account closing will be made back up as the balances of your CCCs are paid down.  Once you are finish the DMP program, you are able to get new credit as long as your credit scores are in the required range.

If you can afford to, I would continue to pay the CCCs as before and not use the hardship program just because you can.

[appstate]

OMG!  I just found out that my score went down 55pt! 

Citicards reported this:

Arrangements made with credit grantor to make partial payments
Credit card

I asked them when I signed up for this if it would affect my credit score.  They said no.  I had two credit cards with them.  I just paid one of them off and have a zero balance.  I owe $4300 on this one.  

What can I do?!??!?!?!

I have a 569 score!!!!

[appstate]

^^bump

[marty56]

TL's dont effect you FICO score.  I will assume you got a 30 day late over this.  I would call them and pay the mimimum due and ask if they could remove the late.

As a note to those who think otherwise, my 120 day late on my CR was the result of paying too little on the monthly payment to BofA.

Dont trust anything a CSR says unless you get it in writting.

[appstate]

I've not been late on a payment for a long time.