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Posted: Thu Feb 07, 2008 12:05 pm

I signed up with CareOne credit to get a handle on my charged off cards, but now I'm wondering if this was a bad decision. I am planning on buying a house later this year and I'm wondering if this will bad ly affect my credit?

Posted: Fri Feb 08, 2008 7:25 am

I haven't made a payment to them yet, but they seem to think that after three payments all of my credit cards will show as current. Will the credit report say that I'm using them?

Posted: Fri Feb 08, 2008 8:42 am

About buying a house.....The lenders have really tightened their standards to "old school" requirements... 20-25% down, and very good credit.

The cards have been charged off? How will it show "current" if they have been charged off?

Posted: Fri Feb 08, 2008 8:45 am

I meant the ones that are charged off showing as "paid or paying as agreed". I'm just concerned that it will make my credit look worse.

Ism · Posted: Sat Feb 09, 2008 9:51 am

I have worked for a mortgage lender, and they view your credit from the angle of "in the past when some company has extended credit or given money to this person, how have they been repaid?" they are looking at your whole credit profile, are you currently paying on some debts now, revolving and installment? Or do you have no credit other than the charge-offs? Put yourself in the bank's shoes and look at your credit report that way. The bank doesn't know you personally, most likely the one approving your loan will never even meet you. All they have to go on is how you have handled yourself in the past.
Does this mean it's hopeless? Not at all! It's NOT as bad as the newspapers say. FHA (government backed mortgages) concentrate on the last 12 months, even though they can see the last 7 years. What about your rent payments? Do you have 12 on time rent payments you can prove? What about your utility bills? Phone bills? They are all credit lines you can use to help show the bank you are good for your word!
Don't give up - just look from a different angle Wink

MCasper · Posted: Sat Feb 09, 2008 11:59 am

Mortgage lenders view credit counseling (debt management) programs as the equivalency of a Chapter 13 bankruptcy. Therefore it will affect your mortgage application as underwriting will catch it.

Posted: Tue Feb 12, 2008 2:29 pm

I am with CareOne Credit debt management since 4/1/2007 they have been making payments for me to all my credit cards religiously in turn this credit card companies are reporting that you are making payments every month but at the very top of their account (credit report) shows "CHARGE OFF" I guess this might change after one finishes paying them off and it will show paid. Hope this help.

Posted: Wed Feb 13, 2008 7:06 am

I wanted to go through CareOne Credit, some months ago, to consoldate some 'minor' things. First ( in my opionion) they asked for an OUTRAGEOUS fee every month. The Rep, on the phone, said I needed to pay $200.00 per month, just for the services! Well.....I DID handle it, for a few months..until I found out nothing was being paid on my accounts, I asked them to deal with. I asked for a refund ( for those few months . Needless to say, I din't get one. I recieved a phone call, from them, a few months later. They stated I wasn't "up to date" on my payments. I told them I wasn't satisfied, with their services and I wanted to stop my services with them. God..what a mess!!

Posted: Wed Feb 13, 2008 8:02 am

I only pay $232 a month (incl. the $35 fee for them)and they have been making the payments every month for me and I can see these credit card companies reporting to the credit bureau. Thank God I have not had any problems with them as a matter fact I will be thru with one of the creditors and when Credit One notifies me I am just going to tell them to spread thr $35 they were paying them among the other creditors.

linda · Posted: Tue Mar 04, 2008 6:34 am

i went with care one in oct now im 5000.00 more in debt then before what can youdo

Posted: Tue Mar 04, 2008 6:37 am

Linda, I am so sorry that that happened to you. It is so important to check these companies out well, before you do anything.

Posted: Thu Mar 06, 2008 1:03 pm

One thing with the CCCS types of companies is that you need to remain involved every step of the process. Don't expect that they will take care of it all for you.

1) make sure that your creditors accept their plan. They don't have to and some certainly may not. If they just start paying them what they feel like without having the creditor accept the deal, then your looking for trouble to be entered into your credit reports.

2) make sure you keep making your regular payments to your creditors until you know that they have been paid. Most people assume that the creditors will get paid by a CCCS and it won't make them late since they are in agreement with the CCCS. That's the key here though - you are in agreement with the CCCS and may not be yet in an agreement with the creditor. Some people go 30 days late in the process of waiting for a cccs to pay their first payment, and it just dominoes from that point on and the person never finds out until they have many 30 day lates on their credit report.

Just make sure you read, read, and read some more if you choose to take a CCCS route. Know who and what you are dealing with before you agree to anything. Some people CCCS saves them and works out for them, others make the situation much worse for them by working through a CCCS.

CCCS in my opionion truely should be considered as a case by case basis. It isn't for everyone - but that's my personal opinion.

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