The credit score issue is a surprising effect of the programme that has been plagued with Problems and disappointing results since its launch last year. Only about 170,000 house owners had completed the method as of Feb. Hundreds of thousands more are still in limbo.

Jim Owens, 46, of Harrisburg, Ore, was accepted on a trial basis for the Obama plan last year. He and his family were in bad financial shape. They were hardly in a position to pay the mortgage and household bills.

The key reason: After being downsized and unemployed for six months, he took a job as upkeep director at a retirement home. Nonetheless it paid only around $25,000 year, about $10,000 less than his former job in a city public works dept.

He and his wife were also fighting with debt, after taking out a second mortgage four years ago to pay down debt and medical bills.

Late last year, he was hunting for a second user sport-utility automobile. He got a 30-day approval for $2,000 automobile loan.

But that time ran out before he found a car, so he had to reapply for the loan. He was startled to learn that, after signing up for the Obama plan, he was denied.

„I should have been told,“ this might occur, Owens related. „Without credit, you can’t do a ton in life.“

A Citi speaker, Mark Rodgers, related the company follows the Treasury Department's guidelines for reporting to credit bureaus. „We don't determine credit scores,“ asserted Rodgers, who remained silent on Owens ‚ case.

The impact is worse for borrowers who join up to the Obama programme and are then ruled unsuitable.

If owners do come up with a way to get accepted into the Obama program and have their loans permanently changed, lenders update the credit bureaus. The new standing neither injures nor helps the borrower’s credit report. Over time , they can see their score increase.

„The easiest way to build credit back is to continue to pay bills as agreed, to utilise credit wisely,“ asserted Tom Quinn, VP of scoring solutions at Fair Issac Company, which designed the wellknown FICO score system. „As time goes on, the score steadily increases.“

The credit history issue is a surprising consequence of the program which has been troubled with issues and disappointing results since its launch last year. Only about 170,000 house owners had completed the process as of Feb. Many thousands more are still in limbo.

Jim Owens, 46, of Harrisburg, Ore, was accepted on a trial basis for the Obama plan last year. He and his family were in bad monetary shape. They were hardly able to pay the mortgage and power and water bills.

The primary reason: After being fired and underemployed for half a year, he took a job as maintenance director at an assisted living center. But it paid only around $25,000 year, about $10,000 less than his former job in a town public works dep..

He and his wife were also fighting with debt, after taking out a 2nd mortgage 4 years back to pay down debt and doctor's bills.

Late last year, he was searching for a second hand sport-utility vehicle. He got a 30-day approval for $2,000 car loan.

But that time ran out before he found an auto, so he had to reapply for the loan. He was surprised to learn that, after signing up for the Obama plan, he was denied.

„I should have been told,“ this might occur, Owens expounded. „Without credit, you can't do a heap in life.“

A Citi spokesperson, Mark Rodgers, said the company follows the Treasury Dept's rules for reporting to credit bureaus. „We don't establish credit scores,“ said Rodgers, who made no comment on Owens ‚ case.

The impact is worse for borrowers who enroll in the Obama programme and are then ruled ineligible.

If house owners do manage somehow to get accepted into the Obama program and have their loans permanently altered, banks update the credit companies. The new standing neither wounds nor helps the borrower’s credit score. Over the passage of time they can see their score increase.

„The simplest way to build credit back is to continue to pay bills as agreed, to use credit wisely,“ expounded Tom Quinn, vice chairman of scoring solutions at Fair Issac Company, which designed the wellknown FICO score system. „As time goes on, the score. Steadily increases. „.

480.399.0500. Phoenix Credit Fixing has been providing credit fixing to the Phoenix, AZ area since 1993. To discover more about how „Credit scores can drop after getting loan help“ be sure to drop by our site at www.PhoenixCreditRepair.org.