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I'm currently in the midst of rebuilding my credit and looking to purchase in around 12-14 months. My score is bad now to due several collections. I can't pay them all in full but have enough to settle them all. Any specific lenders that wouldn't care about settlements showing? I would be using a VA loan if that matters.
Collections that are settled showing a balance due of $0 are ideal.
Of course don't forget to be certain that you keep 2-3 accounts open (and managed properly) that actively report your on-time monthly payments to all 3 bureaus so that your score is optimized.
@Anonymous wrote:I'm currently in the midst of rebuilding my credit and looking to purchase in around 12-14 months. My score is bad now to due several collections. I can't pay them all in full but have enough to settle them all. Any specific lenders that wouldn't care about settlements showing? I would be using a VA loan if that matters.
Hi Carlos936,
It doesn't matter if the collections report as settled or paid in full. The main thing is to get them taken care of so they stop reporting. As long as they report every month, your scores will struggle to improve.
Another reason to get your collections taken care of is a recent change to the VA guidelines now requires lenders to hit you for a payment on collection accounts if the CA reports a minimum payment on your credit report. Unfortunately a lot of CA report the balance owed as the minimum payment.
I agree with NC_Mtg_Loaner, make sure you have open & active accounts & that you manage them properly.