If you’ve been on a debt management plan for a while and feel that you’ve been successful managing your monthly spending while paying down debt, good for you. It’s a great to feel that your finances are in control.
That status may have you wondering about getting new credit, and you may question whether a new account will hurt your credit rating, or if opening a new credit card might even help your credit. Is it even possible to get new credit while in debt management?
Before going there, consider that none of these is the first question you should be asking.
Should I Open New Credit on a Debt Management Program?
That’s the most important question. For the most part, the answer is no.
It is possible to get credit while on a DMP, and there may be circumstances in which it’s advisable. But if you’re on such a plan because you were having trouble making your payments on time, adding more debt while you’re still in the process of eliminating your old debt is asking for trouble. Your current creditors will notice you are building more debt and could require you to close the new account or even void the lower interest rates and reduced monthly payments that makes your DMP so beneficial.