Possible effect of "hardship payment plan" on Visa?

[Anonymous]

     Hi- Newbie here, please be patient. One of my Chase Visa accounts sought to increase my minimum payment by about $100 per month. I chose to close this account myself several years ago, and have always had a 100% perfect payment record on it (and other accounts) both before & since. While I'd obviously love to pay it off ASAP, I also have to deal with the reality of having many other responsibilities. Some months ago I spoke with one of their reps- "no problem sir, your payment won't go up, etc.", then recently I get a letter as if that call never happened. I call back, they offer to put me on a "hardship payment program" which will keep the minimum payment unchanged. They swear up & down that merely BEING on the "hardship program" won't negatively impact my credit score, as long as I keep up my perfect payment record. I recorded the call in case I had to PROVE that multiple reps at Chase told me this in the phone call.

     Still, while I am uneasy about trusting them, I may have no good choice but to trust them. Any advice, experience, or comments?

                                                                     Thanks, Vic

[Anonymous]

It really depends on how they report it.  If they report as on time with no special notification, you'll be fine.  If they report as delinquent, you have a problem, as you also do if they show a "hardship payment plan" notation on credit.

[Anonymous]

     So are you saying that they lied to me, that merely BEING on the plan DOES have a negative effect if it gets reported, even though my payment record is spotless? A very serious negative effect? I may be able to still stop the situation. Should I?

                                                       Thanks for your patience & help- Vic

[Anonymous]

I'd assume it's treated like Consumer Credit Counseling.

The Counseling itself doesn't impact score.  However, lenders still frown upon it, and even if your FICO score is 775, DU (fannie mae's automated underwriter) will "kick" a file that has an indication of "Consumer Credit Counseling" on it.

I'd assume they do the same for "hardship payment plan" on it.

So they are truthful in that it shouldn't affect your score per se, but doesn't mean a loan won't be turned down.  Lenders look at more than just FICO score.

[Anonymous]

Is this the two year plan where they lower your interest rate also?

I ask because I was on a two-year plan with Chase for 2 credit cards, trying to get my accounts under control. I had been hit with a ton of lates and overlimits prior to enrolling in the program.

Nothing was ever put on my CRs regarding my participation in the program. (And I had also cancelled my cards prior to enrollment.)

[Anonymous]

     Hi- thanks for responding. There is no time limit to the plan, no interest reduction. Really, all it's SUPPOSED to be is to keep the terms exactly as they are now. I have decades of 100% on-time payments with both Chase & other creditors. How one party to a contract can unilaterally change terms is beyond me. Well, not really. Chase has more money than God, almost as many lawyers as Satan, and I've got squat. I guess I'll just have to pray & hope for the best.

                                                                                         Thanks- Vic