Is it true that loan officers do not pay attention to credit problems that are less than $250.?

Question

I heard from a source that if the credit problem is less than $250, the creditor will not hold it against you or even that it will not affect your credit score.

Answer 1

That is not true.

I have FREQUENTLY seen credit card late payments of only $15 send a credit report tumbling 60 points! You are being misguided.

Here is some additional info. Hope this helps.

Answer 2

Definitely NOT TRUE. If you buy a car, a home, whatever, the lender will look at everything (if they don't, they will probably charge you out the wazoo for interest because they don't care about anything but making a quick buck with upfront fees and interest, then selling your loan to the highest bidder.)

I've been a banker and loan officer, and I have seen more problems come up in the approval process because of nickel and dime chargeoffs and deficiencies. If you have any of these outstanding, contact the credit bureau and see if they can help you clear these off of there, or contact the people that you owe directly and pay these off.

I personally would not want to make a loan to someone who leaves debt, however small, unpaid. How would YOU feel about making such a loan to someone?

Answer 3

Some investors don't care about collections and chargeoffs. However, if you have a judgement on your credit report, you may be required to pay that off. The difference is going to reflect in the interest rate you get. Investors that don't care about collections or charge offs are considered "non-conforming" and charge higher interest rates and higher closing cost. Give me a call if you have any additional questions. 877-287-5396, Randy

Answer 4

NO,
I am going to be honest 250 or 2500 will have the same effect on your credit score. Credit Score is what they look at they don't really care what it is for.

Answer 5

No. Some do. It depends on what your are trying to borrow the money for and the amount of money.