Reply
Frequent Contributor
Posts: 299
Registered: ‎05-24-2012
0

Why do I feel like my 180 day lates are punishing me just like a bankruptcy?

I have six 180 day Sallie Mae lates on my file that are scheduled to come off in 2017.  I also have a Chase 90 day late, Three Sallie Mae 90 day lates, and a BOA 30 day late.  I have a few medical collections on my file as well totalling $5000.

 

 

I recently had a medical judgment vacated and when I checked my score this month, I did not even get a one point increase.  Right now I can't even get an unsecured credit card.

 

I had about $25000 in unsecured debt and I enrolled in a DMP in February 2012 and I will complete payments by August 2015. 

 

I'm trying to do the right thing and take care of these debts one by one but why do I get the feeling that I am being punished for doing the right thing when people who declare Chapter 13 bankruptcy, get these debts wiped out?

 

I have a feeling those 180 day lates will just wreck my score till 2017.  How do you think my score will change from now till 2017?  I would like to open one credit card so that my credit history is good.

Frequent Contributor
Posts: 324
Registered: ‎04-12-2013
0

Re: Why do I feel like my 180 day lates are punishing me just like a bankruptcy?

People in DMP rarely get unsecured debt of any kind. You can try subprime lenders you give you chance.
Best is to start with a secure credit card from company like Capone. Try to avoid companies whom you are paying under DMP.


PNC Secured 2000 (Dec12), Chase Amazon 2000 (Apr13), CapOne Newcomer 2500 (May13), Citi dividend 3000 (May13), Discover IT 1000 (Jul13), Amex BCP 6000 (Jul13), Chase Southwest 10000 (Jul13), Chase Marriott 12000 (Oct 13), BofA Travel Rewards 5000 (Dec13)

- In garden till Dec 2014
Frequent Contributor
Posts: 299
Registered: ‎05-24-2012
0

Re: Why do I feel like my 180 day lates are punishing me just like a bankruptcy?

So after the DMP in 2015 things will get better?

 

Will the 180 day lates be a big issue by 2015 even though they come off my report in 2017?

 

I have a secured card with capital one but it's only for $300 so I just use it for  filling up on gas once in a while.

 

Life is really inconvenient without a real credit card.

Established Contributor
Posts: 883
Registered: ‎09-10-2010
0

Re: Why do I feel like my 180 day lates are punishing me just like a bankruptcy?


TU711, EQ 731 , EX 706 (As of 12/13/14) - Personal Goal = 760

“Beware of little expenses. A small leak will sink a great ship” – Benjamin Franklin

Gardening since 11-21-14































Frequent Contributor
Posts: 324
Registered: ‎04-12-2013
0

Re: Why do I feel like my 180 day lates are punishing me just like a bankruptcy?

If you had CapOne for more than 1 year then you could email Capone executive office to make the card unsecured and increase the limit.
You need to keep the util below 10% so make majority payment before billing date and always PIF.
Revolving credit is the best way to increase the scores. You can discuss how BK will affect you based on your current assets and income.
BK might be a good option for people with few assets, many liabilities and low income.


PNC Secured 2000 (Dec12), Chase Amazon 2000 (Apr13), CapOne Newcomer 2500 (May13), Citi dividend 3000 (May13), Discover IT 1000 (Jul13), Amex BCP 6000 (Jul13), Chase Southwest 10000 (Jul13), Chase Marriott 12000 (Oct 13), BofA Travel Rewards 5000 (Dec13)

- In garden till Dec 2014
Senior Contributor
Posts: 3,443
Registered: ‎11-30-2007
0

Re: Why do I feel like my 180 day lates are punishing me just like a bankruptcy?

Rarely does anyone enrolled in a DMP get credit.  It's also part of the agreement that you signed.  Applying for any cards can get you shut out of the program.   People who file BK don't have an easy time either.  It's a long process.  An 180 day late is a MAJOR derog and is designed to hurt, and it does (speaking from experience). 

 

However, you ARE doing the right thing.  And it will pay off.  Calling CapOne and asking for credit isn't the best idea when you're in a DMP.  If your creditors are softing you and see new credit...they can withdraw and you're back to high interest rates.  This is one of those things you have to play by the rules.

 

Pay a bit of extra $$$ into the DMP and get that paid off sooner.  I've cut mine down by six months by throwing a few $$$ down.

 

While 2017 seems like a long way off, put your nose to the grindstone and it will pass quickly.  

Senior Contributor
Posts: 3,443
Registered: ‎11-30-2007
0

Re: Why do I feel like my 180 day lates are punishing me just like a bankruptcy?

So after the DMP in 2015 things will get better?  YES!!!!

 

As those 180 day lates get behind you, things will get better.  Unfortunately, it does take a long time to see improvement, and it's small. 

 

I agree that not having a cc can be a pain,  put $$$ onto a prepaid card for now (like AMEX BlueBird) , or increase your deposit with CapOne by $200 or so. 

Frequent Contributor
Posts: 299
Registered: ‎05-24-2012
0

Re: Why do I feel like my 180 day lates are punishing me just like a bankruptcy?

Thanks fishbjc!

 

My concern is which is the bigger problem the DMP or the 180 day lates.  The DMP ends in August 2015 and the 180 lates come off by September 2017.  Will I be in good shape by 2015 or do I really need to wait till 2017 when those 180 day lates finally come off?

Senior Contributor
Posts: 3,443
Registered: ‎11-30-2007
0

Re: Why do I feel like my 180 day lates are punishing me just like a bankruptcy?

Once you finish the DMP, the remarks "managed by dmp' should be removed (they were in my case), so you should be in pretty good shape then.  If those 180's are 4 years behind you, at least they won't be recent.  Sometimes there is nothing you can do except wait.......

 

My DH has NO PROBLEM getting an auto loan while enrolled in a dmp (approved by NFCU and FORD, both for 3.9 for used).

 

He is now getting pre-approvals for Discover, Citi, etc.  He has 1 x 180 almost two years behind him.  We aren't accepting any offers as we don't want to lose our low interest rates for now.  I'm on track to pay-off one year early.

Moderator
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Why do I feel like my 180 day lates are punishing me just like a bankruptcy?

The 180 day lates are major derogs, but they do hurt less over time and are no worse than a CO.  Your scores will go up over time.  Concentrate on getting the bills paid down.  I had over $28000 in debt and went through a DMP.  It crushed my CR, but I paid it off quickly and started the rebuilding process.  My credit was supposed to be tanked until 2016 but the kind people here showed me how to improve a little faster.  


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

Get a myFICO recommended credit card

Copyright ©2001-2013 Fair Isaac Corporation.
All rights reserved.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.