AMEX Financial Hardship Program - Effect on Credit Report and Apartment Credit Check

[rmoconn2]

Does anyone know how being enrolled in this program (whether the short-term or long-term version) is viewed by apartment management companies? Specifically, does it influence the likelihood of being accepted or denied by different buildings? I'm applying to apartment buildings in downtown Chicago and am unsure how this will be perceived, despite having a good income ($120k+). I hit a rough patch last year when the startup I was working for went under, leaving me with a significant amount of credit card debt (over $12k), and I currently have around $6k left on my American Express Platinum card under the hardship program.

[FireMedic1]

The damage will be from what the accounts baddie is. Like a CO and so forth. If its a CO. Once paid. It will help some. Joining a creditors program to repay isnt reflected on a credit report. Thats between you and them.

[rmoconn2]

I was only 7 days late when I entered the payment plan; do you think this will have an effect? 

[rmoconn2]

Financial Relief Program Questions

Hey all! I unfortunately fell into a period of bad spending habits and now have an unpaid balance of $10k on my AA Platinum card. I'm addressing my spending habits by learning how to budget properly, spend within my means, and to tackle this over the next 6-8 months, I am moving back home with my parents. Besides the $10k in other credit card debt, my credit is fine (no bad marks, late payments, charge-offs, etc.), and I am finally in a job making $110k+, so luckily I'm able to take care of this and learn from my mistakes.

I have a few questions regarding enrollment in the Long Term Payment Plan that I would like answered before enrolling:

1. While I am on the program, how will this affect my credit report? I am 7 days late on my July 2024 payment, but when I spoke to the CSR, they mentioned that my status reported to the credit agencies will be marked as current since they don't report late activity until 30 days after the missed payment.

2. I am moving home to the suburbs (currently live in a medium-cost-of-living city) for 8 months to pay off this balance and my other credit cards/save an emergency fund. Once I pay off the balance, how will this affect my credit report and profile? Will this come off fully once I complete the program? How will this appear on my credit report while I am on the program? Again, besides high utilization, I have no derogatory marks on my credit. My biggest concern is whether enrolling in this program will affect my ability to rent an apartment or eventually buy a home. If the program enrollment affects either of these prospects, I am tempted to just pay back a family member and use the funds to pay this off outright right now.

Thanks in advance, and here's to learning from my mistakes and becoming more financially wise.

[pizzadude]

Hi @rmoconn2 , I've merged your duplicate posts into this thread - please refrain from cross posting on the same topic - Thanks!

[rmoconn2]

Thanks! And sure thing.

[rmoconn2]

Any other opinions on this?

[JoeRockhead]

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@rmoconn2 wrote:

Does anyone know how being enrolled in this program (whether the short-term or long-term version) is viewed by apartment management companies? Specifically, does it influence the likelihood of being accepted or denied by different buildings? I'm applying to apartment buildings in downtown Chicago and am unsure how this will be perceived, despite having a good income ($120k+). I hit a rough patch last year when the startup I was working for went under, leaving me with a significant amount of credit card debt (over $12k), and I currently have around $6k left on my American Express Platinum card under the hardship program.

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Any time someone enrolls in a hardship program, there's always a chance the lender might report a notation on your account as being in  hardship status to the credit bureaus. This notation on your credit report would be visible to other lenders and could potentially cause concerns, or problems if applying for new credit. It can also have consequences if the lender lowers your CLs, or closes that account (or others you might have with them). 

If everything remains open and limits all remain as is, but gets noted on your reports, It should have no effect on your scores. I don't know what effects that would have on your ability to rent an apartment as most of them are looking at your overall score, and for things like derogatory information such as missed payments (30 days late or worse, they can't see 7 days late), collections, and eviction histories. I can't, and I don't know if anyone else can answer as to whether a specific landlord might deem a hardship notation on your reports to be a concern, or red flag. 

Just a suggestion, but being you have a good paying job, and you'll be getting some financial relief by moving in with family. Why not continue to make your minimum monthly payments until you're settled. At that point start throwing all the extra funds you can at the debt until it's paid down... This way the effects of being in a hardship program are negated as it never happened in the first place.