Re: Credit Counseling and FICO Score
08-26-2009 03:51 PM
From my understanding, it has indeed negatively impacted scores and reporting for some people.
There is no long term affect on your FICO score from being in a DMP. In the short term, I dont know if there was an affect on my score when I started the program since I was not FICO aware until I was close to finishing the program and anyway it is a mute point since you wont be applying for any credit while in a DMP.
By the time you finish the program, not having any CC debt will give you much higher score then when you started and even if you had lates prior to DMP, by the time your are finished (5 years), they will be 5 years older thus not hurting as much (if any).
The TL statment saying the account was being managed by a CCCS as zero impact on your FICO score and as far as my own experieince goes, hasn't stoped me from getting credit at the best rates.
The trick in being in a DMP is that you must be able to afford the payments and never apply for new credit while in the program. if you have a BofA product in the program, that goes double.