Credit Repair While Debt Management Program

[Anonymous]

Hi, everyone.  I decided to do a huge overhaul of my debt which has dinged my credit beautifully.  I went from a 660 (debt to income ratio huge) to the 590s due to a few things.

Age of accounts dropped dramatically.  I consolidated my 13 year old private and public student loans.  All my credit cards were closed because of the DMP.  Due to issues with deferment, confusion on my end about DMP payments, etc, I now have the following late marks ranging from 30 to 60 days past due for three credit card accounts to three federal loans showing 90 days delinquency.  These marks have hit my credit between September of last year to January of this year.  I wrote to all of them for goodwill adjustments but I doubt that will get me anything.

How else can I repair my credit?  I can't take out any other credit cards or I'll be kicked out of my DMP.  I'd very much like to be able to buy a house by August first of next year (a mortgage would cost me about forty percent less than rent in my area).  I won't be able to move to another rental with this credit score.  Am I doomed?  

[FireMedic1]

Since your in a DMP. Not much to do but pay on time to the DMP and time will do its thing. Make extra or larger payments to get the debt over with quicker till your debt free.

[Anonymous]

You definitely have to add positive to your credit history. Have you thought of a secure card? Your chances of approvals will be high. A secure card is where you fund it and start paying it on time monthly depending on the credit card company you choose. They up your limits after they see your paying on time. Email me if you need any help be glad to help in any way I can!

[FireMedic1]

A creditor considering you for new credit will review your credit report, credit score, and income to assess your ability to pay.

Your debt management company will not communicate with credit bureaus about your participation in a debt management program. However, some of your enrolled creditors may provide this information to your credit report. Therefore, it is possible that you could be turned down for credit based on your participation in a debt management program.

Additionally, if you are approved for a debt management program, you likely have a high debt-to-income ratio, which could be another factor that disqualifies you from acquiring new credit card debt.

It is possible to be approved for new credit while participating in a debt management program. Don’t assume that approval means you can afford debt service on additional monies borrowed. If you do open new credit, be incredibly cautious about using it, and pay it off, on time each month.

[DIYcredit]

I was in a DMP and I was approved for a capital one quicksilver while I was in a DMP and owed alot of cc debt.The thing is they don't want you to open any cc accounts because they think you will acquire more cc debt.As long as you make all of your payments on time to the DMP  and every other credit  obligation then I think it's it probably a good time to open a secured card and make monthly on time payments.What I did was live within my means and never bought anything I couldn't afford.It's good practice for the future.GOOD LUCK.

[Anonymous]

Thank you!  Did they do a credit check?  How much did it help your credit and in what time span?

What was the result of your DMP.?  I'm on five a five year plan which feels like FOREVER.  Did you ever attempt to get any other credit besides a secured card?

I was tempted to get put on my dad's credit card as an approved signer but my DMP counselor said that credit card companies may kick me out.  I'm assuming a secured credit card doesn't look at debt since it's self-funded?  I'm not too familiar with secured cards.

[DIYcredit]

I was in a DMP for five years but, I paid it off in three.My Fico score increased as I made monthly on time payments on all my cc's and when I paid all the cc's down the cc debt. I kept cc utilization 1-6%.The thing is not to let the DMP know that you are opening a new cc.They don't check it's a business they only care that you are making your payments on time.A secured cc is for people who wont qualify for a unsecured cc.Any credit account you apply for does a credit check,You should try capital one pre qualifier.

[Anonymous]

That's super impressive!  I'm trying to figure out how to allocate extra money to get it paid off in less time but it's difficult.  I already have a capital one card on the DMP- I assume it's inadvisable to apply for a card from a company already on my DMP?

[sjt]

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@Anonymous wrote:

Hi, everyone.  I decided to do a huge overhaul of my debt which has dinged my credit beautifully.  I went from a 660 (debt to income ratio huge) to the 590s due to a few things.

Age of accounts dropped dramatically.  I consolidated my 13 year old private and public student loans.  All my credit cards were closed because of the DMP.  Due to issues with deferment, confusion on my end about DMP payments, etc, I now have the following late marks ranging from 30 to 60 days past due for three credit card accounts to three federal loans showing 90 days delinquency.  These marks have hit my credit between September of last year to January of this year.  I wrote to all of them for goodwill adjustments but I doubt that will get me anything.

How else can I repair my credit?  I can't take out any other credit cards or I'll be kicked out of my DMP.  I'd very much like to be able to buy a house by August first of next year (a mortgage would cost me about forty percent less than rent in my area).  I won't be able to move to another rental with this credit score.  Am I doomed?  

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You might want to check with the DMP administrator if they can assist in getting goodwills for the credit card lates. Also, I would contact the student loan providers and see if they will goodwill those lates due to a misunderstanding.