Will my credit score drop just because I have enrolled in to DMP?
Thu, 08/01/2013 17:35
I have enrolled into a debt management program. A creditor has recently sent a letter to me stating that the account will be reported as closed for future purchases. I'm confused. Will it have a negative impact on my credit report? Is there anything which I can ask the creditor to update on my credit report? Something that will have less negative impact on my credit score. My current score is 650. I can't afford to lose a single point. I won't be able to qualify for a FHA loan and buy a house in SCOTTSBORO, Alabama.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.