I Paid Off My Bills - Why is My Credit Worse, and How Am I Going to Buy an
Orange County House Now??
Perhaps you've tried to do the right thing and paid off old debts. Then you learned that your credit score had gotten worse!
How is that possible?
You did the right thing, didn’t you?
You paid off your creditor.
However, there are a few things you may not have known.
A late payment that is more than 24 months ago or a charged off debt that hasn't been reported for more than 24 months, has significantly less effect on your credit than a newly reported payment.
When you make that payment, it can actually give more negative impact to that old late payment or charge off.
The more recent the problem, the more likely it is to hurt your credit score.
Additionally, making a payment may restart the statute of limitations - the time during which the credit may file a lawsuit against you.
So, is not paying old debts the answer? While leaving well enough alone might help your credit score, it doesn't mean that your creditors can't come after you for your outstanding debt, as long as they're within the statutue of limitations.
If you are planning to buy a home, your credit score is important and can make a big difference in your interest rate or even if you can get a loan.
If you are in this situation and are wondering what you can do to put yourself in the best situation possible to buy a home, please contact me at 714-319-9751 to discuss your specific situation.
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About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.
Are you upside down in your home? Is it worth less than you owe? Are you concerned about making your mortgage payment? For more information see Options to Foreclosures, understanding short sales or contact me at christine@donovanblatt.com to discuss your options.
If you want to buy a home or to list your property for sale, please click Newport Beach homes, Costa Mesa homes, Huntington Beach homes or Orange County homes. Click the link if you are interested in buying a home at a courthouse auction sale.
Contact me at christine@donovanblatt.com or 714-319-9751 to learn about her system which will make your buying and selling experience easier.
Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.
Federal Government Disclaimer (MARS)
- You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject or accept the offer, you do not have to pay us.
- Christine Donovan, DonovanBlatt and Donovan Group are not associated with the government, and our service is not approved by the government or your lender; and
- Even if you accept this offer and use our service, your lender may not agree to change your loan.
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