05-14-2013 07:05 PM
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.
05-14-2013 07:29 PM
05-14-2013 07:32 PM
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.
05-15-2013 04:07 AM
05-15-2013 08:06 AM
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.
05-15-2013 08:09 AM
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.
05-16-2013 06:09 AM
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?
05-16-2013 07:28 AM
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.
05-16-2013 07:30 AM
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.