Debt Ratio Question....and old collections

[Anonymous]

If you have two old collections that you are paying monthly payments on, how do the loan officers look at that?  I have two big ones that I decided to pay this way, one is an old American Expess and the other an old Providian.... Looking at my credit report it shows both of these as in my credit numbers so my credit debt is beyond high.  Will the lenders look at this also, or will they use the agreements that I have with each of these companies to deteremine my actual credit debt and my DTI?  One of these will pay off in August and the other one still has another year.  I will end up paying both comapnies less than the totals showing on my report.

I plan to go talk with a loan officer on Monday, however I am now wondering how this is going to hurt me. 

This is only on my credit report, my husband has a really low dept ratio and on his credit cards he is around 5% of utilization.  Without these two collections I am also at 5% utilization on my credit card. 

[cdtotten]

Most creditors will demand that all  collections be paid in full before they will issue you a loan. How much are these collections?

If they don't require you to pay and full, they would most likely use the agreement in place to determine the amount to include in your DTI calculation. The actual debt amount though will be factored into your assets/liabilities. A high debt load could be a red flag to a lendor.

What are your FICO scores?