Posted on
September 21, 2008
at
11:50 pm
How bad it is to pay a collection 2-3 months prior to buying a house? Will it help me if I get a secure card to compensate a decline in my credit score by making my account active (paying collection)? Please help me understand my ups and downs in paying this legitimate collection account.
Posted on
September 22, 2008
at
12:43 am
I think paying it off would be
very helpful. Just making a payment not so much. It's next to impossible to get a mortgage with an account in collection. If you do manage to pull it off you're going to be paying a higher rate at the least.Other than that I think your best bet is to wait a few months for this mortgage mess to blow over (hopefully) and save up a good deposit. An FHA loan is probably also your best bet. The government insures it for the bank making it much less risky for them.
Posted on
September 22, 2008
at
11:33 am
Your credit is checked in depth before mortgage companies will loan you money for a Mortgage. I think your best bet is to be sure to pay off any item in collections and have a letter stating it was paid in full. I also think it's harder to get a mortgage with having anything in collections, even if it's paid off. Collections ruin your credit - it's all a numbers game.
