Credit card usage in the consolidation program
Date: Wed, 05/10/2006 - 15:09
Hi Once you are enrolled in the consolidation program, your c
Hi
Once you are enrolled in the consolidation program, your credit accounts will be closed or frozen for the period. This is done so that you don't build in further debt on that account. Otherwise, it will be tough to catch up with the payments and the set plan won't work effectively.
After the program finishes, you will be able to use the accounts again. The creditors will report the bureaus as 'paid' and you will have increase in your credit scores.
Ohhhh - so these companies don't ban you from their services aft
Ohhhh - so these companies don't ban you from their services after the program is over? Not that I'd want to rack bills up again, but it's nice to have those cards to continue building credit and for the unforseen emergencies (my car is 10 years old - who knows when it's going to decide to die). I was under the impression that they are lost and gone forever.
No, the credit companies won't put you in their "Don't" list. Wh
No, the credit companies won't put you in their "Don't" list. When the accounts are closed during the program, it is good for us so that we don't multiply our debt further.
Once the accounts are paid off, the credit companies will report the accounts as 'paid' with the bureaus. This will boost up the credit file and the future lenders will see you with good ratings.
I find this program beneficial for me because I learn some budgeting skills here. Earlier, I used credit endlessly and without any thoughts, but now I have learnt to control using credit and take care of my ratings.
Gretchin - so you used a consolidation program? Do you mind let
Gretchin - so you used a consolidation program? Do you mind letting me know which one? I'm ready to get started. For the longest time I thought I would be able to do it myself - but the high interest makes it very hard. Even when I pay more than the minimum - it seems like it takes months to even make a dent in the balance.
Ehwin I can relate to you. I am using Counseling Services ref
Ehwin
I can relate to you. I am using Counseling Services referred by this website. I was paying almost up to 24% at one point of time. I am relieved now as it has been reduced to a better 15%. Though, I still stress to make larger payments so that I can come out of the program faster.