Credit history and the consolidation program
Date: Thu, 09/29/2005 - 17:57
Hi mjf, Welcome to forums. debt consolidation does not affect
Hi mjf,
Welcome to forums. debt consolidation does not affect credit history; on the contrary it helps to remove the negative marks from your credit report. The consultants working in the program try to negotiate with your creditors so that they report the delinquent account in your favor.
Once the default accounts are marked as Paid in Full, or Paid as Agreed in your credit report, it's easy to achieve a good score. For details please go through the article here-
http://www.debtconsolidationcare.com/benefits.html
Bryan
Hi mjf Welcome to the forums. Your credit will only improve a
Hi mjf
Welcome to the forums. Your credit will only improve after considering the debt consolidation program. This program has been designed to improve your financial standing after all the negative entries in your credit report are recuperated. All the unpaid accounts will be paid through the consolidation program.
After enrolling in this program, it will appear in your credit report and the lenders will appreciate that you have taken the responsibility to clear off the past debt. Though you might have had some financial difficulties in the recent past, but you have controlled the situation by taking help of this program.
The creditors report your accounts to the credit bureaus. The consolidation program reduces the total amount of your debt eliminating the financial charges, late fees and the creditors will be able to view the reduced amount in your credit report. The consultant working in the debt consolidation program will be able to negotiate with your creditors for the best of your credit ratings.
The ultimate goal of the debt consolidation program is to improve your financial and credit standing and as long as you are current in the debt consolidation payments, you will be viewed more favorably than before.
Regards
Roxette
While it may not effect your score, having the lender see "credi
While it may not effect your score, having the lender see "credit counseling" on your credit report can have an effect on financing. Some places view it as a BK while others require you to have been in the program for at least a year. I have come across it w/ clients in the past looking for mortgages, and my friend recently got denied a loan for a motorcycle because he is currently enrolled in a counseling program. They also told him it would not affect his credit, as this was his main concern before even starting anything...
Quote:Some places view it as a BK while others require you to ha
Quote:
Some places view it as a BK while others require you to have been in the program for at least a year. I have come across it w/ clients in the past looking for mortgages, and my friend recently got denied a loan for a motorcycle because he is currently enrolled in a counseling program. |
When you are looking for any secured loan, the lenders are keenly interested in evaluating your credit history. Your credit score analyzes your financial worthiness. Based on these scores, loans or credit can be acquired from the creditors and other lending agencies.
Extensive research is conducted on the following areas of your credit report.
- Your payment history is analyzed.
- The amount that you owe is taken into consideration.
- Length of your credit history is determined.
- They look out for the types of credit that you have used so far.
- They will look into your new credit.
debt consolidation does its individual job in making regular payments with your creditors. But you have to keep the other avenues also in good condition.
My point was that it does not affect your score negatively, but
My point was that it does not affect your score negatively, but having any type of credit counseling on your credit report makes it difficult to qualify for new credit.
Quote:having any type of credit counseling on your credit report
Quote:
having any type of credit counseling on your credit report makes it difficult to qualify for new credit. |
Not at all, because once you have taken the credit counseling or you have completed your payments with the lenders through the counseling, the credit is viewed more favorably than before.
However, there are exceptional lenders who just find ways to deny giving credit to the consumers. If you, as a consumer keep everything in place, then I am sure, no one can deny you. It's my suggestion. :D
Regards
Roxette
Well of course once you complete the program your credit report
Well of course once you complete the program your credit report no longer says "credit counseling". How long does the program take? Takes a long time if I recall, like several years?. During that time, you are going to have a hard time getting new credit, wheter it be a car, mortgage, revolving debt, etc. I don't need credit counseling, I am pointing out that everyone thinks this will not affect them in any way, and they are wrong.
When a lender sees that you need help in paying your bills, they are not going to view you more favorably than someone else who is having a hard time and working it out themselves.
Like I said earlier, I have seen people apply for a mortgage w/ me and have had the same responce from mulitple lenders. They either treat it as a BK, or they require you to have been in the program for at least a year. Both situations affect the loan to value you can get approved for as well as the interest rate.
Quote:During that time, you are going to have a hard time gettin
Quote:
During that time, you are going to have a hard time getting new credit, whether it be a car, mortgage, revolving debt, etc. I don't need credit counseling, I am pointing out that everyone thinks this will not affect them in any way, and they are wrong. |
Well, a good financial plan says that during the times of debt, it is necessary to reduce the expenses as much as possible. debt consolidation program also closes or freezes the accounts that are included in the program. Why?? Because of the fact that the consumers don't build in additional debt while being in the program. Otherwise, it will seem like chasing a moving target.
Quote:
When a lender sees that you need help in paying your bills, they are not going to view you more favorably than someone else who is having a hard time and working it out themselves. |
This is the time when a person should not look for new credit. He is trying to recuperate his financial position. He himself is weak at this stage and the lender will make him weaker. You can act strong once your debt is paid.
And regarding the tenure of the consolidation program, it is not that all programs take several years to finish off. It is as per the request of the consumers. If you decide to pay more towards your debt, the program will get sooner and vice versa.
Regards
Roxette
More questions
So, once someone enters into a debt consolidation program, what does it show up as on a person's credit report? Also, once the debt is paid in full, how long does it stay on the person's credit report? Do people have trouble getting a mortgage or have to pay higher interest rates with this on their credit report, even after it is paid?
I included 5 of my debt accounts in the consolidation program an
I included 5 of my debt accounts in the consolidation program and they are shown in my credit report. But it will remain as long as I am in the program. Once I have paid the debt in full, it will disappear from my file.
The creditors are keenly interested in reviewing your credit file before lending you mortgage. They will offer you credit based on the report and how you have maintained it. They will research on the following avenues:
- Your payment history is analyzed.
- The amount that you owe is taken into consideration.
- Length of your credit history is determined.
- They look out for the types of credit that you have used so far.
- They will look into your new credit.
If all the above mentioned areas satisfy their conditions, they will offer the rates of interest suitable for you.
