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iamAG
Houston Astros Fan
Member since Aug 2015
3517 posts

My wife did not follow my advice about a debt collection.
We are looking to buy a new house. My credit is 750+ From all three. No bad marks.

Her credit was solid. 720+ on two and 680 on one. The 680 one has a collection from her college years(5years ago) for $200. I told her to let it go. She tells me today she paid it in full. They didn’t agree to take it off the credit report. My fear is that this will now show as a new debt(yes paid but still New).

I’m not familiar with this and google didn’t do much help with answering what will happen to her score. I’m hopeful that it is a wash and will not hurt. Anyone have any estimates on what will happen to her score? I know we will get approved, but I’m trying my best to get the best rate that’s possible.


indianswim
LA-Monroe Fan
Plano, TX
Member since Jan 2010
7518 posts

re: My wife did not follow my advice about a debt collection.
There are specialists who can get that cleared. Where you located?


iamAG
Houston Astros Fan
Member since Aug 2015
3517 posts

re: My wife did not follow my advice about a debt collection.
Baton Rouge


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01
johnnydrama
LSU Fan
Possibly Trashy
Member since Feb 2010
6772 posts

re: My wife did not follow my advice about a debt collection.
Money Board?



Also,
quote:

wife
pics?


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150
bhtigerfan
Baton Rouge
Member since Sep 2008
18139 posts

re: My wife did not follow my advice about a debt collection.
The Money Board might be able to help you with this.


iamAG
Houston Astros Fan
Member since Aug 2015
3517 posts

re: My wife did not follow my advice about a debt collection.
I apologize. My intentions were to put this on the MB. I will request a move.


jdeval1
LSU Fan
Member since Dec 2009
7525 posts

re: My wife did not follow my advice about a debt collection.
quote:

My intentions were to put this on the MB. I will request a move.

Post the pics here and on the OT though


iamAG
Houston Astros Fan
Member since Aug 2015
3517 posts

re: My wife did not follow my advice about a debt collection.
I was hoping to get some real info. Guess my board mess up doomed that.


jdeval1
LSU Fan
Member since Dec 2009
7525 posts

re: My wife did not follow my advice about a debt collection.
It won't do much to her credit score. If it becomes a real issue, it's just a couple of hundred $$. The lender might make you prove that it's settled before going through with the loan. I used to work in finance actually.


Chief Rocka
LSU Fan
Member since Aug 2013
338 posts

re: My wife did not follow my advice about a debt collection.
So, you are saying that your wife is honest and respectable and you are not.


iamAG
Houston Astros Fan
Member since Aug 2015
3517 posts

re: My wife did not follow my advice about a debt collection.
Pretty much


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20
iamAG
Houston Astros Fan
Member since Aug 2015
3517 posts

re: My wife did not follow my advice about a debt collection.
Awesome. Thank you.


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00
LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
12402 posts

re: My wife did not follow my advice about a debt collection.
It might throw you into manual underwriting, where she can explain herself.

The whole system is insane. Paying off an old debt should be rewarded, not punished.


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50
Lou
LSU Fan
out here in the middle
Member since Aug 2005
7128 posts

re: My wife did not follow my advice about a debt collection.
I found an article on myFICO.com:

quote:

The fact that you have collections listed on your credit report will almost certainly lower your FICO score. Your score weighs collections on your credit report according to when the collection occurred. Generally, the more recent the collection, the more it's going to hurt your FICO score. At myFICO we always recommend paying off your legitimate debts, and paying off old collections won't hurt your FICO score.


quote:


Something else to keep in mind is that every lender uses its own criteria when evaluating loan decisions. Some lenders may want to see that you are paying off collections before approving your loan. So, paying off collections could very well improve your credit-worthiness in the eyes of a lender.


Full article here = LINK


ItzMe1972
Member since Dec 2013
1862 posts

re: My wife did not follow my advice about a debt collection.
Many mortgages ago, I had a small medical bill show up unpaid. I think it was around $20. I was required to pay it off get the loan.


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10
GFunk
LSU Fan
Denham Springs
Member since Feb 2011
13835 posts
 Online 

re: My wife did not follow my advice about a debt collection.
Whomever earns the most money will be the main borrower and their mid score will be the one that’s focused on in most cases. 700+ and you’ll be good. If you have the cash, pay the rate down as much as possible.


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
39459 posts

re: My wife did not follow my advice about a debt collection.
These old minor debts always seemed rather scammy to me. Nobody GAF about a debt that small that is five years old. For something this minor I would have just told the mortgage lender about it and asked them what I needed to do.

The original creditor doesn't care over something this trivial, not after five years anyway. Yes, they would the first month or two but after that they'll just report it and avoid trying to dedicate any resources to it.


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