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ChihuahuaMomma · May 21, 2008, 10:26 PM

I have $182 of debt on my credit history. My question is, how long after I pay this off can I be approved for a loan?

JudyKayTee · May 22, 2008, 07:40 AM

Originally Posted by ChihuahuaMomma

I have $182 of debt on my credit history. My question is, how long after I pay this off can I be approved for a loan??

Too many variables such as payment history, income, how much of a loan you are requesting, employment history, things of that nature to venture a guess.

In my area they are approving loans for good risks over the phone in an hour.

Don't know that a $182 debt would change approval time on any other loan.

ChihuahuaMomma · May 22, 2008, 08:47 AM

The debt won't be on there... THat's part of my question. I paid it off, how long do I have to wait until that won't show up on a loan request?

Payment history for what?

JudyKayTee · May 22, 2008, 08:52 AM

Originally Posted by ChihuahuaMomma

The debt won't be on there....THat's part of my question. I paid it off, how long do I have to wait until that won't show up on a loan request?

Payment history for what?

Credit cards, this particular debt, any credit history.

When you pay the debt off ask if it's been reported to the credit agency and if it has, how long before they report it's been paid off.

ChihuahuaMomma · May 22, 2008, 08:53 AM

I'm paying the debt off to the collection agency as neither of those businesses are alive anymore.

I've never had credit cards. And there was no payment on that particular debt because nothing was ever mailed to me and I didn't know that I owed anything. My online dispute was taken as a joke.

progunr · May 22, 2008, 09:21 AM

That account on the credit bureaus will not go away, but will be marked as paid collection, or satisfied judgment.

The history can remain on the bureaus for 7 years so you may not get much immediate benefit for paying it off since the number of days it was delinquent will remain on the reports.

If all other areas in your financial situation are OK, I doubt that an account of that size would have much effect on a loan decision, if that is the only negative on your report.

ChihuahuaMomma · May 22, 2008, 10:40 AM

I know that it was stay on my report as paid, I'm just wondering how long it will take to go from UNPAID to PAID status on my report.

And that's the only debt that I owe, if that's what you mean, otherwise my credit report reflects other bad things such as NEVER having had a credit line, NO credit score, and a few other PAID balances. SO it looks negative, but everything is paid off. I need this loan to pay off deliquent bills that could soon go to collections, I was unemployed for five weeks, so bills HAD to be neglected. I also want this loan to start building some credit, and build my credit score from 0 to SOMETHING.

Please let me know if anyone has any other information for me. I'm kind of new to this whole thing.

Also, what is a reasonable cash/personal loan interest rate?

JudyKayTee · May 22, 2008, 11:12 AM

Originally Posted by ChihuahuaMomma

I know that it was stay on my report as paid, I'm just wondering how long it will take to go from UNPAID to PAID status on my report.

And that's the only debt that I owe, if that's what you mean, otherwise my credit report reflects other bad things such as NEVER having had a credit line, NO credit score, and a few other PAID balances. SO it looks negative, but everything is paid off. I need this loan to pay off deliquent bills that could soon go to collections, I was unemployed for five weeks, so bills HAD to be neglected. I also want this loan to start building some credit, and build my credit score from 0 to SOMETHING.

Please let me know if anyone has any other information for me. I'm kinda new to this whole thing.

Also, what is a reasonable cash/personal loan interest rate?

Ask them how long it will take to change from unpaid to paid - the collection agency will know. It varies from agency to agency and there is no "pat" answer.

As far as a reasonable personal loan interest rate - what you are offered depends on your overall credit score based on job stability, income, savings, credit history.

Look at bankrate.com for your State - it varies by State. It will give you the average rate for the amount you want to borrow, for the specific purpose at 3 or more lending institutions.

What do I think is reasonable? I got free financing on my car (which ultimately makes money for me because I don't lose interest on "my" money by withdrawing it) and I believe my credit card is at 9% but that's because I was going to switch if they didn't lower it from 11%.

I don't know what other people pay or think is reasonable. I guess it depends on your circumstances.

ChihuahuaMomma · May 22, 2008, 11:15 AM

I don't have a credit score..

JudyKayTee · May 22, 2008, 11:23 AM

Originally Posted by ChihuahuaMomma

I don't have a credit score..

The Credit Bureaus have no record of you?

Amazing, at least from my experience. Then why are you concerned about your debt and how soon it will be removed from your record if there's no record in the first place - ?

Now it will depend on whether anyone will give credit to an "unknown" and, if so, what interest they will want.

ChihuahuaMomma · May 22, 2008, 11:24 AM

Yes they do. But my credit score is 0.

JudyKayTee · May 22, 2008, 11:25 AM

Originally Posted by ChihuahuaMomma

Yes they do. But my credit score is 0.

You do have a credit score - it's zero. That's not the same as not having a credit score.

The average credit score in the US last year was approximately 650.

ChihuahuaMomma · May 22, 2008, 11:29 AM

Well, that's what I meant. Having a credit score of 0 is really the equivalent of not having a credit score. I guess I meant I have no credit.