Posted on: 19th Jun, 2009 10:23 pm
i have a lot of medical collections on my credit report and am having a very difficult time paying any of these bills at this time. should i worry about this if i want to refinance my mortgage?
please provide me solution
please provide me solution
Yes, you should definitely be worried about collection accounts on your credit report. The main purpose of refinancing is usually to reduce the interestrates, but with the kind of damage a collection account causes to your credit, it will make it difficult for you to find a lender who would be willing to refinance, let alone offer you a low interest rate.
By leaving collections open you will only be able to get a subprime mortgage. Your interest rate will be much higher than it would be if you pay them
I strongly suggest that before you start applying for refinance, make sure that all these old collection accounts are
paid off and show a zero balance on your credit report.
By leaving collections open you will only be able to get a subprime mortgage. Your interest rate will be much higher than it would be if you pay them
I strongly suggest that before you start applying for refinance, make sure that all these old collection accounts are
paid off and show a zero balance on your credit report.