Trying to keep a line open thats in DMP

[uktaurusbulba]

I enrolled in a DMP like a year ago and I in some ways, I wish I didnt do it. Basically, the reason is that they close all your accounts, which will affect your credit down the line.

Anyway, I had about 60k in credit card debt, and now its 50k. I have accounts from the mid 1990s with large lines that I would like to keep, if possible. They are with BANK OF AMERICA and DISCOVER. Do you guys know, if I offer to pay these accounts off in full, if they would consider reinstating these accounts?

With Discover, I have 2 accounts, totalling about $14,500 in debt and with Bank of America, I have 3 accounts with about $23000 in debt.

[Anonymous]

With DMP, usually you can not open any lines of credit suring the process.  If you were try to get one of the lines re-opened you would probably get kicked out of the program and your cards would probably all re-set to default.

Also, there is usually a requirement that all payments go through the DMP program, not directly to the lender.  The lender isn;t even suppossed to contact you if you are in DMP unless you miss payments.

Also, even if they opened the lines, they would likely CLD you down to a few hundred limit.   I would wait until I was through paying the accounts and then GW any lates and ask for the lines to be restored.  

[dizzier]

Talk to whoever is managing your account, maybe even talk to the creditors. Some DMP programs are designed so that some of the cards can be rehabed. I'm not sure if this has to be negotiated at the start of the program.

[marty56]

I finished DMP last year.  All my accounts were closed except the BofA account.  I think they meant to close it but forgot.

IMHO based on my experince with BofA in DMP, I would not think they would rehab the card.  You could call and ask but do not apply for any new credit until the BofA is PIF since they will drop you from the program like a rock.  That is how I wound up with a 120 day late on my CR and scores stuck where they are.

I would not go back to any CCC that I had in DMP.

[uktaurusbulba]

Ive called Bank of America and the rep told me they are considered closed but you never know. People have different experiences and DMP is an area that isnt discussed oftern. Being that I owe Bank Of America a chunk of change, I would think it would be in there interest to keep them open if I paid in full now. Heck, I would even be willing to take a huge hit on the credit lines for that because my interest is the age of the accounts, not using the credit. I would have to think that would be worth considering on there part.

As for Discover, I havent called them yet. I owe them alot less so I may just start there. Im just not sure if bank of america will kick me out if I get what I want from Discover. I mean, its not like it would be a new account, but you never know. Anyway, I'll keep the board posted on my adventure here. Im trying to use my personal for business lines, which isnt a possibility now.

[uktaurusbulba]

Thanks for the info! I was aware of the Bank of America policy about new accounts. I am staying away from that. I am hoping I can keep the accounts for age. DMP is good because of lower rates but it sucks if you need to use credit for business. Im really becoming a student of the credit game trying to restructure my personal debt and change my scores.

[marty56]

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@uktaurusbulba wrote:

Ive called Bank of America and the rep told me they are considered closed but you never know.

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I suspect in my case, they failed to tell the CRAs that the account was closed.  I would love for that account to fall off my CRs since even though it is almost 13 years old, I dont need the age.