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IA_Chiefs_fan
01-21-2006, 05:38 PM
My wife and I are looking to buy a new house soon. I just purchased my credit report from equifax and it all looks perfectly fine except...
There is one $139 outstanding balance from 1999. When I pay that off how long before it no longer looks bad on my credit report?

KC Jones
01-21-2006, 05:45 PM
hmm... those things should only go back 7 years if I'm not mistaken. Even if you pay it off now it will look bad that it took so long, but if you owe it you should pay it. Also, has this been an oustanding debt the whole time or something you've been making regular payments on?

Someone will loan you money pretty much no matter how bad your fico score is.

Bill Lundberg
01-21-2006, 05:45 PM
If it's from 1999 you will probably be better off to not pay it off until after you buy the house. It is important to see when the tradeline last reported. If it is still reporting it won't hurt you to pay it off, but if it hasn't reported for a few years paying it off may actually HURT your credit score. As the owner of a mortgage company, I can tell you that if it's only $139.00 it is not going to keep you from getting the house you want or the interest rate you deserve. Let me know if you have any other questions as I'm always happy to help the home buyers!

IA_Chiefs_fan
01-21-2006, 05:50 PM
I have not been making payments on it because I didn't know the debt existed. My wife and I thought we paid it off years ago. It was last updated Dec 2005 so I guess I may as well pay it off. What is crazy is that our mailing address hasn't changed in 8 or 9 years and they haven't sent us anything for years, yet they're still reporting it to equifax.

Cochise
01-21-2006, 05:55 PM
What status is that account in? If it's charged off as a bad debt, you can likely get that removed. Call up the creditor and offer to pay them the full amount immediately if they update it to "Paid as agreed". If it's gone to collections the agent will often do this. I don't know if the account has hit you with late payments, but creditors can remove those too.

Chargeoffs are the worst thing you can have on your report, but if you haven't paid the balance off yet, then you have room to bargain.

C-Mac
01-21-2006, 08:00 PM
It comes off as soon as you pay it.

chagrin
01-21-2006, 08:12 PM
I worked for Citibank in the mortgage division for 5 years, I can tell you that most underwriters will only go back 2 years on your CR, any outstanding debt has to be paid off, unless you go through a - cough - broker.

After paying it off, write the credit bureau and have them remove it, showing proof it's been paid - then you're good as gold, good luck with the new house!

Bill Lundberg
01-21-2006, 08:54 PM
I worked for Citibank in the mortgage division for 5 years, I can tell you that most underwriters will only go back 2 years on your CR, any outstanding debt has to be paid off, unless you go through a - cough - broker.

After paying it off, write the credit bureau and have them remove it, showing proof it's been paid - then you're good as gold, good luck with the new house!


**Cough** Fannie Mae now allows collections and chargeoffs up to $5000 to remain unpaid **Cough** Broker or Banker it doesn't matter.

chagrin
01-21-2006, 09:05 PM
**Cough** Fannie Mae now allows collections and chargeoffs up to $5000 to remain unpaid **Cough** Broker or Banker it doesn't matter.

Are you a broker, did I hurt your feelings?

Bill Lundberg
01-21-2006, 09:10 PM
Yes, I am. No you didn't hurt my feelings. Unfortunately there are a lot of bad brokers out there. But a good broker will always get you as good or a better deal than any bank.

chagrin
01-21-2006, 09:13 PM
Yes, I am. No you didn't hurt my feelings. Unfortunately there are a lot of bad brokers out there. But a good broker will always get you as good or a better deal than any bank.


I disagree, but it doesn't matter; I'm out of the business now and won't go back to it. Crazy stuff that can be done now regardless, wouldn't you agree?

Bill Lundberg
01-21-2006, 09:15 PM
Oh yes I definately agree. Many people who have no business buying houses are being approved everyday for loans they won't be able to repay.

Bob Dole
01-22-2006, 10:04 AM
If it's from 1999 you will probably be better off to not pay it off until after you buy the house. It is important to see when the tradeline last reported. If it is still reporting it won't hurt you to pay it off, but if it hasn't reported for a few years paying it off may actually HURT your credit score. As the owner of a mortgage company, I can tell you that if it's only $139.00 it is not going to keep you from getting the house you want or the interest rate you deserve. Let me know if you have any other questions as I'm always happy to help the home buyers!

Not to hijack the thread, but...

So what's the advice for someone with clean credit who is suddenly getting collection notices on bullshit "delinquencies" that were disputed when they were initially charged?

In particular, Bob Dole is suddently being harassed to pay AT&T cell phone charges for calls originating in Canada when Bob Dole was nowhere near Canada on the date of the calls (nearly 6 years ago), and being harassed for Sprint "minimum monthly long distance service" fees for long distance service Bob Dole cancelled when he received notification of the change from Sprint (over one year ago).