Marty56:
That is exactly what the lender told me. I think that they were running scared, as there has been a in the HELOC industry. It was extremely difficult back in Aug, Sept to get a HELOC. Lenders were literally changing their guidelines on an hour by hour basis (I mean that literally). Her scores, her D/I, her LTV all were in the guidelines, but they kept adding stips and finally came out with this goofy excuse.
That is exactly what the lender told me. I think that they were running scared, as there has been a in the HELOC industry. It was extremely difficult back in Aug, Sept to get a HELOC. Lenders were literally changing their guidelines on an hour by hour basis (I mean that literally). Her scores, her D/I, her LTV all were in the guidelines, but they kept adding stips and finally came out with this goofy excuse.
Starting Score: 469
I have been on a DMP now for over a year. My Equifax score in November of last year was 476. Today my scores range from 586 to 628. I applied for a mortgage loan and they told me I qualify for a prime rate.. but since the value of homes fell about 20% since last year, I more than likely no longer have the equity to refinance at a better rate..
The lenders I called asked why I was on a DMP.. They told me it wasn't a factor in the decsion but they needed an explanation to put it in my file.
The DMP is helping me out considerably. I had 17 credit card accounts. 17 revolving accounts were too hard to keep track of.. Every card had different due dates, plus when 11 of the cards were bought out by Chase, all the statements looked the same. I would get letters in the mail saying the terms of my Chase account have changed. I didn't know which account. because no account numbers were listed with the letters.
When a statement got lost in the mail, and I didn't catch it.. I got nailed with a $35.00 late fee and kicked to the default rate of 31.99%..
It still is your responsiblity to keep track of the statements and to make sure the payments arrive on time. I have never had a late payment while on a DMP. I now watch my statements like a hawk and I now keep track of everything on spreadsheets..
The DMP is working for me.. I have no problems with it. I still choose to pay the $30.00 a month fee for the service. I have paid off 5 cards since I have been on the program.
A DMP isn't for everybody.. A good DMP should weed out certain people. If you make too much money to where you can afford to make a higher payment on your cards.. You don't need a DMP. If you have a $5,000 card balance at 18% interest.. Increasing your payment from 150 to $200 a month without charging anything can pay that card off in 30 to 35 months. If you can afford that extra $50.00 a month you don't need a DMP.
A good DMP should turn you down if it clearly shows you can't afford to make the payment.
Some cards will not lower your rate or minimum payment, nor will they cooperate with a DMP. My accounts were Dell.. Chase/Bill Me Later, and AMEX... Amex dropped my rate to 9.9% but will not change the due date to be on the program. I have to pay them myself but they still have me under the DMP terms.
Most Chase cards will drop to 6%.. There are a few cards that were recently bought out by Chase that are still using the old company's terms.. Chase/Circuit City only dropped down to 9.9%.. Chase/Bill Me later will NOT cooperate under any circumstances.. Dell is still charging me 33% interest and I have to pay that one myself..
I think Sam's Club only dropped 5%.. The card dropped from 27% to 22%.. 
Message Edited by Pants on 12-31-2007 12:29 PM
Message Edited by Pants on 12-31-2007 12:31 PM
Generally speaking, it's smart for anyone in these programs to check their online accounts every month to make sure that all the payments have been made in plenty of time.
The only thing that could make me angrier than my making a late payment myself (never again!!!) would be for someone else to whom I entrusted my credit to screw up.
The only thing that could make me angrier than my making a late payment myself (never again!!!) would be for someone else to whom I entrusted my credit to screw up.