Jump to content

4 mnths in DMP how to boost credit score?


tiredtiredtired
 Share

Recommended Posts

I'm 4 months in a DMP with InCharge. I'm mostly happy as they have been able to reduce fees, interest, etc. How can I begin to boost my credit score. I am looking for a rental home for my G'friend, her 2 kids an I and I'm worried I won't be able to find a nice home in a good school district. Can anyone help? I'd appreciate it:?

Link to comment
Share on other sites

Debt Management programs and Consumer Credit Counseling are credit AND score killers. Many lenders would rather see a bankruptcy than this notation. Consumers feel they should get a pat on the back for paying their debts. But the financial industry sees this as absolute indication that you need professional assistance to manage your money. This equals a HUGE risk for them and they (and the scoring software) react in kind.

Your best bet is to finish DMP and then work to have all notations removed from your CR. Follow a plan which raises your score in the meantime.

As far as renting: You may wish to try a privately owned home or apartment. Individuals generally do not have the ability to pull credit and usually base rental decisions on other factors. Hint: Three months rent up front (first, last & security) plus all the other required deposits indicate that you have access to lots of cash (and are therefore likely to pay the rent). Money overcomes a lot of things. Good luck!

Link to comment
Share on other sites

Thank you for your helpful reply. Yes I have found that the DMP is a credit score killer, and yes, I was naive enough and deserate enough at the begining to think I was doing something good. Although the DMP has been a good thing in terms of paying back my debt, the credit is shot!

Thanks again!

Link to comment
Share on other sites

I've been through credit hell and back and I think one way out is too simply stop paying. I considered BK and credit counseling but neither worked for me. So I simply stopped paying my cc's (painful decision!).

I did not get credit to default on it -- I had a failed biz and a big house and I just couldn't keep it together. Previous to my meltdown I had 700+ credit.

I stopped paying on over $100k in credit cards about 2.5 yrs ago. So far I have paid about $10k back through settlements, bank garnishments, etc. Most months I don't even get a letter from my creditors. Most don't chase very long or hard.

Follow the advice on this board and it will be ok. I am back in the high 580's credit wise and I know the best thing for me was the "walk away method"

Hang in there - keep your chin up!

Link to comment
Share on other sites

Thanks for the advice and words of encouragement, but wow, "stop paying" just doesn't seem like the right thing to do to me. I don't mean this in a moral sense, though there is that concern, but it seems to me that it may even result in more ruin, stress, and litigation.

I'm new to all of this and I am begining to see that this "debt stuff" is a word of its own, with its own language and stratagies, so I plead ignorant. I'm sure I have much to learn and I really have no respect, nor compunction for the creditors--they are leeches, but the last thing I need to bring upon myself is litigation.

I'm about $48,000 in debt due to a divorce and a child custody case and man, and I see very little light ahead. In order to pay my DMP and my Rent I live on exactly NOTHING!

Thanks again. I appreciate every member's concern here. This is a comforting place.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.