If I do not pay off my debt, but just continue to make monthly payments on time (to a debt consolidation company), how would this affect my chances of getting approved for a mortgage/bank loan?
You are making payments to a debt consolidation company? If this is the case you may want to look at your credit report before looking for a home loan.
Call your credit card companies to be sure you indeed are making the proper amount of payments.
Soem of these dept companies get your money and do not pay as promised.
It is easy to have the bank run your credit at no charge and this way it will tell you where you stand.
sorry to tell you this, but for most lenders debt company is the same thing like bankruptcy chapter 13. pay yours credit cards as soon as you can and get rid of this debt consolidation company, then apply for the mortgage .
All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrowerand are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.
5 responses so far ↓
1 shawnluger1
pay the credit card off so you dont have to pay interest anymore
2 Big Deal Maker
You are making payments to a debt consolidation company? If this is the case you may want to look at your credit report before looking for a home loan.
Call your credit card companies to be sure you indeed are making the proper amount of payments.
Soem of these dept companies get your money and do not pay as promised.
It is easy to have the bank run your credit at no charge and this way it will tell you where you stand.
3 bianca
sorry to tell you this, but for most lenders debt company is the same thing like bankruptcy chapter 13. pay yours credit cards as soon as you can and get rid of this debt consolidation company, then apply for the mortgage .
4 Lizeth
All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrowerand are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.
5 Terry S
Interest rates on credit cards are a rip off right now.
I would pay off the credit cards first.