Posted on: 08th Mar, 2010 06:21 pm
i am in a fixed 30yr loan on my condo in chicago. i would like to refinance. i just started a new job 5 months ago, i have around 7k credit card debt which i am planning to pay off at the end of the month. my w2's look great for the last 2 years.. ---- here is my problem ---- last summer i stayed in a apartment complex during the week close to work, they took my security deposit when i moved out and since my condo was about 200 mi away, they billed me for $150 and sent to a collection agency. i paid it (even though i shouldnt have) it went on my credit. a mortgage agent ran my credit and said that it dropped to the high 600's. my score was over 800 before.
what can i do to still get a low rate on the refinance when my credit has been ruined by one $150 bill. can i get it fixed? are there any loans where this would not be an issue?
what can i do to still get a low rate on the refinance when my credit has been ruined by one $150 bill. can i get it fixed? are there any loans where this would not be an issue?
Hi Guest,
In my opinion, it is good that you paid off the charged off amount. This will have a positive effect on your credit report in the long run. Irrespective of the fact whether or not you paid the account, the collections would have been mentioned in your report and would have reduced your score. This negative account will remain on your credit report for 7 years and lenders will take this into account before originating a loan to you.
Take care.
In my opinion, it is good that you paid off the charged off amount. This will have a positive effect on your credit report in the long run. Irrespective of the fact whether or not you paid the account, the collections would have been mentioned in your report and would have reduced your score. This negative account will remain on your credit report for 7 years and lenders will take this into account before originating a loan to you.
Take care.
How much do you owe vs. the vaule of your home? Rates are great whether you are in the high 600's to mid 700"s. You're talking about .125 difference in rate with some lenders.
