I get calls all the time from buyers wanting to buy houses, but their credit just isn't up to par. They have low scores, and when I am able to dig far enough into their situation, it's basically that they have things in collections that they just never paid. They ran up a credit card or two or five, and decided they rather have the stuff for free rather than pay the bills.
Now, they want to buy a house, and these collections are preventing them because they have lowered their score so much, plus the lender gets to see all the unpaid balances which show them the borrower isn't responsible and probably a foreclosure risk.
But then I hear, "I'm more than happy to pay them off if that helps..." Really? You're more than happy to pay them? If you're happy to pay them, why didn't you pay them back when they were due? Why didn't you pay them prior to wanting to buy a house so they had time to roll off your credit and bring your scores up? If you're happy to pay them, why did you allow it to happen in the first place?
No offense, but you can look like a baffoon when you make decisions like that! Lenders don't want to see your mistakes. Lenders want to know they're lending money to responsible people so they know they're going to get their money back each and every month. Think before you don't make your credit card payments. Think about how it will effect your furture. Your future can be controlled by your past if you don't get things straightened out.
**Are You Packed Yet?**
Austin TX Real Estate
and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way.
** Multi-Million Dollar Producer Year after Year **
Copyright© 2013 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* Collections Lowering Your Credit Score - Now You're Ready to Pay Off * was first published on donnahomesblog.com.