Should I Settle Credit Card Debt?
Credit card debt can complicate your finances.
Whether you have high-interest credit card rates or debts with large balances, a financial review can shed some light on your situation.
If you will be applying for a home loan, it’s wise to speak with a mortgage broker before you settle credit card debt.
Aged Credit Card Debts
Past-due credit card debts and collection accounts could result in a loan denial.
However, mortgage lenders are most concerned with your credit history for the past 24 months.
Knowing which of your recent bills or aged credit card debts to pay off could impact your mortgage loan approval.
Mortgage Loan Approval
Outstanding credit card debts might be a deal breaker for some lenders.
To obtain a mortgage loan approval, you may need to pay off certain credit card debts.
When you pay off revolving debts, your monthly obligations decrease.
Therefore, paying off your open credit cards and settling closed credit card accounts could also improve your credit score.
Lower monthly debts and a higher credit score might be just what you need to secure a mortgage loan approval.
Using Home Equity for Debt Consolidation
A cash-out refinance loan or a home equity line of credit (HELOC) may be used toward consolidating your debt.
Mindful Money offers a variety of loan programs for debt consolidation.
If you qualify, have enough home equity and want to pay off your credit card debt, personal loans or other debts, you can speak with a licensed mortgage broker for more details.
Homeowners in Arizona, California and Colorado are encouraged to contact Mindful Money about affordable debt consolidation solutions.
Speak With a Mortgage Broker Before You Settle Credit Card Debt
Deciding to improve your financial situation is a great idea.
It’s equally important to work with a knowledgeable and trusted professional.
Samantha Cooley is a reputable mortgage broker with more than 20 years of industry experience.
If you’re thinking about buying a home or refinancing, it’s wise to have a conversation with Samantha before you settle your credit card debt.
Schedule a call with Samantha Cooley today.