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Hi guys. New here and have a couple questions.
I have a credit card debt older than 6 years (could be 7, I'll have to check) scheduled to fall off this October. I live in Indiana where the statute of limitations is 6 years. My fiancee and I are going to try to get a mortgage soon and I am trying to get this item off of my credit before we apply for the mortgage.
How will this impact the mortgage approval?
What are my options and what should I do?
Thanks! :?:
Credit card debt
Hi Grid,
If the statute of limitation (SOL) of your state is 6 years, then the creditor won't be able to sue you. However that does not mean that they may stop the collection process. But if you really owe the debt, and you are financially strong to pay it off, it is your duty to pay the debt.
What do you mean by trying to get the item off your credit report? Are you going to pay off the debt. Remember that if you use the account in any way, it will start the SOL all over again.
Whether or not you can get the mortgage depends not only on the details of this single debt. If you are current on other debts and bills, if you have a good credit history, if you have a good credit score, you may qualify for the mortgage.
this will affect your chance to get a mortgage
I would start with a straight dispute with CRA, if that doesn't work then send a 623 dispute to the collector. If they can provide valid proof of the debt, then offer them 30% in exchange for deletion from your report. You should get a low settlement because it is beyond SOL. If not then wait.
You can always stop collection efforts by sending a cease & desist letter. This means that they have to go away or sue and since this is beyond SOL then they will lose a lawsuit.
reply
Hello Grid,
I agree with cinnamngrl. The 623 dispute letter to the collector is a very good option to dispute items off your credit report.
So I start by doing the electronic (online) dispute. Then if that does not work, do the letter? I am trying to knock this out as FAST as possible.
What do I say in the electronic dispute? What do I say in the letter?
Thanks a million!!!
ALSO... I'm thinking that the fastest course of action may be a pay for delete. How fast could I potentially get one of those done? Would I call them first or send a letter?
online disputes are useless. Send a letter with the reason for the dispute