Now the capital one charge off is settled but if i have the option should i just pay the rest of it to have it updated to paid in full? -YES! PAY IT OFF! IT’LL STOP UPDATING NEGATIVE INFO. THEN TRY GW TO TRY AND HAVE IT REMOVED.
What are the advantages -AS IT AGES IT’LL HAVE LESS AFFECT ON YOUR SCORES and disadvantages- WHEN APPLYING FOR HOME LOAN YOU MAY HAVE TO HAVE IT PAID BEFORE APPROVAL. ( this will fall off my record in two years but im looking to buy a house before it will drop off ).
What are the advantages -AS IT AGES IT’LL HAVE LESS AFFECT ON YOUR SCORES and disadvantages- WHEN APPLYING FOR HOME LOAN YOU MAY HAVE TO HAVE IT PAID BEFORE APPROVAL. ( this will fall off my record in two years but im looking to buy a house before it will drop off ).
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Apply first for that mortgage and see if you need to do anything with your credit profile at all at this point.
I was in the same boat as you last year I believe. I wanted to apply for a home but was hesitant because even though I was at 670 - 690, I had 4 old derogs at the time. I went ahead, applied to test the waters and I’m responding from my home now.
My mortgage lender saw that my negative items were about 5 - 6 years old, but saw that since then I’ve been stellar and on time with everything. Disclaimer: I applied as a veteran so not sure if that helped any.
If you’ve not had any more hiccups since your last negative, I would apply. The lender, if they’re a good one, will let you know what you have to do to seal the deal.
Whatever you do, don’t just apply with one lender. It was actually my second application with another lender that I went with. The first lender was giving me an awful rate and I didn’t even know until the second lender gave me theirs. I went from 4.125 to 3.4. I won’t mention any names, but the first lender seemed like they were trying to pull a fast one. That rep kept calling me everyday like a recent ex.
Last but not least, if you’re gonna apply, do it all within 30 days. The bureaus will understand that you are just rate shopping. My mistake was applying in July, then in September, waiting too late to pull the trigger and applying again in October. I got the house in November but look at all these inquiries. Had I done it within 30 days, it would’ve all been counted as one I believe.
So - Apply. Fix what they tell you to fix, and get a rate. Rinse and repeat.
I was in the same boat as you last year I believe. I wanted to apply for a home but was hesitant because even though I was at 670 - 690, I had 4 old derogs at the time. I went ahead, applied to test the waters and I’m responding from my home now.
My mortgage lender saw that my negative items were about 5 - 6 years old, but saw that since then I’ve been stellar and on time with everything. Disclaimer: I applied as a veteran so not sure if that helped any.
If you’ve not had any more hiccups since your last negative, I would apply. The lender, if they’re a good one, will let you know what you have to do to seal the deal.
Whatever you do, don’t just apply with one lender. It was actually my second application with another lender that I went with. The first lender was giving me an awful rate and I didn’t even know until the second lender gave me theirs. I went from 4.125 to 3.4. I won’t mention any names, but the first lender seemed like they were trying to pull a fast one. That rep kept calling me everyday like a recent ex.
Last but not least, if you’re gonna apply, do it all within 30 days. The bureaus will understand that you are just rate shopping. My mistake was applying in July, then in September, waiting too late to pull the trigger and applying again in October. I got the house in November but look at all these inquiries. Had I done it within 30 days, it would’ve all been counted as one I believe.
So - Apply. Fix what they tell you to fix, and get a rate. Rinse and repeat.
@Anonymouswrote:will paying an account off in full benefit me if the account is already settled for less than agreed?
No, you may be asked why you paid less by an underwriter but a computer looking to grant you credit wont care.
