Chances of getting loan after taking this program

Hi Federer

Welcome to the forums.

You are looking for some professional help at the stage when you are not able to make payments on your own. At this point, do keep in mind that whether you use debt management programs or not, the consequences of not handling your accounts properly are far worse.

Debt management programs help you in planning your finance and creating a budget. It does not put any affect in your credit score or your ratings. The counseling program will negotiate with your creditors for a lower interest rate so that you are able to pay your debts fully.

While you are using this program, a note will be put in your credit report reflecting it but it will be removed once you have completed all your debt payments.

The famous credit scorer, Fair, Isaac & Co. does not include this program while your scores are calculated. The creditors will be appreciating your role that you have taken the responsibility to clear off the past debts.

Please read the benefits of such programs that are available to the consumers in the benefits page of this website.

Your credit report is affected by a debt settlement program. This program stays negatively on the file for a period of 7 years. Basically, the creditors are asked to settle the accounts by accepting less money that is owed. Upon acceptance, a note will be pasted on your file by them. This lowers the scores and creates difficulty in getting new credit.

Regards
Roxette

What are my chances of getting a loan after I use this program?

Based on these credit score, loans or credit can be acquired from the creditors and other lending agencies. When the credit score is evaluated, 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.
  

I have a lot of unsecured credit card debt and my credit is in fact in bad shape. I am looking for one monthly payment plan so that I can get it paid. Can I get some help here?

credit counseling program will combine all your debts in one monthly payment at a lower rate of interest. You will also get a reduced amount from your creditors that will be eliminating all the financial charges, late fees etc.

I will recommend you to make the best use of this program so that you are regular with your bills. Once your accounts are complete with your creditors, your file will take good shape.

Also, check out the following tips and know how you can improve your credit scores.

Check for incorrect entries - It is mandatory to check your credit report for any mistakes from all the three credit reporting agencies. You can review your report for at least once in a year as well as several months before you apply for a loan.

Timely payments It will be considered a very good practice if you always pay your bills on time. Your prompt payments will put you in a much comfortable position before you apply for a loan. This point is emphasized because a late or missed payment just before applying for a loan lowers the credit score and has worse impact than a missed payment five years ago.

Bring credit balance to the minimum - It is always beneficial to reduce the credit card balances as much as possible. The FICO scores get affected due to how much money you owe on some cards relative to your total credit limit. Credit scores are seen improving if the balances are kept below 25% of the credit card limit.

Don't linger your payments It is suggested not to increase the ratio by closing an account and transferring the remaining balance to another account since the ratio of the credit card balance is linked to the credit limit. Doing this will lower the credit score which should not be generally done while you are on your way to increase your credit score.

Unused accounts to be kept active - While you are applying for a loan, it is suggested not to close any unused account. At the same time, it is suggested not to open a new account also during that time. It is said because if you are having a short credit history or less number of accounts, the credit score gets lowered when a new account is opened as there is no proven track record of it.

Regards
Roxette