Usings a DMP to fix credit

[Anonymous]

Hi everyone-- I am a bit new here so pardone muah if I am asking help for something that be addressed elsewhere.. point me in the right direction if I am..

In the past year or so I have had some rough situations where I was going to divorce and used almost all money I had to pay for an attorney and had some lates on my credit. Then I had an awful experience with an auto lease through Nissan and I turned it over to them that created a VolRepo on my credit. Then again this year the marital problems started up and everything from paying lates to just not paying started up again. My hubby and I have since finally worked things out and are looking to get our credit fixed to be able to get a mortgage. We have enrolled with CCCS DMP and are a little unsure about some things. First is we got some calls from collectors saying that the original creditor refused to participate in the DMP and turned it over to them. My husband says if that is the case that we should not include a collection item on the DMP since the account is already charged off and no further interest accumilates(even though they say they will I have yet to see it). We are wanting to just pay the creditors who are willing to negotiate interest rates and payments. Which is better? Should I let them all charge off? How much worse can it get? The only items I for sure pay on time and as agreed since everything is my car, installment loans(Furinture and an appliance center and secured loans) and everything else I kinda blew off to relieve the stress and money worries...What should I do? All and any advice is welcome!

[Anonymous]

I have some accounts in a DMP and I find it very strange that collection agencies are calling you to tell you that the OC refused the DMP. My suggestion there is that you contact both your DMP and the OC to find out what's going on.  Make sure you hear it from them first before you act on it.  You can never trust collection agencies.

Definitely don't let them all charge-off.  If you're working toward a mortgage, you don't want a whole lotta charge-offs, those things don't go away for 7 years, and explaining it to banks would be tough, an frustrating.  Being in a DMP does not affect your credit score (at least it's not supposed to), and I think it would actually serve you in good stead to be able to show that you're working on making things better.

Of course there is the other side of the argument against DMPs, many feel it's something you can do yourself if you call you creditors and work with them.  I leave that up to you.  Just be sure the DMP is reputable, and the fees aren't ridiculous (I pay $10 a month), read everything they send you and keep tabs on ALL your accounts you have enrolled with them (check statements to see payments are being made and on time, etc)

ATB!!

-trini

[jlc]

May I ask what company you use that charges $10.00 per month??

[Anonymous]

Hi Trinigal:

Sorry to let you know that your recent post has been removed because it violates FICO Forums Guidelines and Terms of Service, which prohibit: posting a link to other credit repair sites.

Refer to our Guidelines and Terms of Service for more information.

Please feel free to post a revised message – we value your contributions!

Thanks,

Fused

Message Edited by fused111 on 09-25-2007 09:01 AM

[PayYouNever]

I have two CC in a DMP, and they brought the APRs down to 7% and 9% on a Chase and Capital One. I wasn't able to get the CCs to reduce their APRs on my own, and the DMP (Lighthouse Credit) made it happen. Lighthouse charges $10 a month.

It's been good for me with Chase, because it's paid on time every month for the past 3 years. CapOne still lists that I was 120 days behind on payments from 04, Chase has me listed but as current. Which is why CapOne are some b*tches; has anyone got a GW to work with CapOne?

All in all a DMP is good for getting you payments under control because it's one payment per month, and the DMP handles the distribution before the due dates. After about

Only thing is, your accounts get marked "Closed At Consumer Request" on your CR, so it might not be that good in the long run. My Chase account was 12 years old when I had to shut it down, maybe the history still counts to some extent but it'll be done soon enough and start to age off my account.

[Anonymous]

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trinigal wrote:

Hi Trinigal:

Sorry to let you know that your recent post has been removed because it violates FICO Forums Guidelines and Terms of Service, which prohibit: posting a link to other credit repair sites.

Refer to our Guidelines and Terms of Service for more information.

Please feel free to post a revised message – we value your contributions!

Thanks,

Fused

Message Edited by fused111 on 09-25-2007 09:01 AM

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ooops!

Sorry

[Anonymous]

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PayYouNever wrote:

Only thing is, your accounts get marked "Closed At Consumer Request" on your CR, so it might not be that good in the long run. My Chase account was 12 years old when I had to shut it down, maybe the history still counts to some extent but it'll be done soon enough and start to age off my account.

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My DMP asked me to close all my accounts and I didn't, so mine don't say that.  The only one that's closed is the one I closed prior to the DMP, the rest are open and current, available balance and everything.  Waiting to see what they'll do when I finally pay them off.

[fused]

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trinigal wrote:

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trinigal wrote:

Hi Trinigal:

Sorry to let you know that your recent post has been removed because it violates FICO Forums Guidelines and Terms of Service, which prohibit: posting a link to other credit repair sites.

Refer to our Guidelines and Terms of Service for more information.

Please feel free to post a revised message – we value your contributions!

Thanks,

Fused

Message Edited by fused111 on 09-25-2007 09:01 AM

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ooops!

Sorry

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No worries! Thanks for being a good sport!

[Pants]

As far as DMP's and credit score. It depends... Some card companies will report you late the first 3 months on a DMP. Some card companies will erase those lates on the 3rd consecutive payment some won't. That is the only thing that will affect your score while on a DMP.

My credit score has briefly dropped in the upper 400's when I started the DMP, but on the 4th month it jumped to the mid 500's.

My biggest complaint about a DMP is no Fun money. I have been on a DMP for 11 months. I guess the most frustrating thing is not going on a REAL vacation. I work from home so staying home on my vacation time is about as bad as going to work.. LOL...

I have some questions for people who are or were on DMP's..

I am told the most stressful/toughest period of time is the first year.. True? or False?

How long does it take to reach a 620 to 640 score? (I am told assuming no lates it will happen sometime in your 2nd year on a DMP)

When the DMP is completed. What did you do or what are you planning next?

Did you fall behind on your house, car, or other installment loan payments while on a DMP? (I was told most people do the first year)

Message Edited by Pants on 09-26-2007 03:42 AM