Thank you for visiting Bills.com. Yes, you should definitely be worried about collection accounts on your credit report. The main purpose of refinancing is usually to reduce the interest rates, but with the kind of damage a collection account causes to your credit, it will make it difficult for you to find a lender who would be willing to refinance, let alone offer you a low interest rate.
By leaving collections open you will only be able to get a subprime mortgage. Your interest rate will be much higher than it would be if you pay your collections off and go with a conforming loan program. Collections, no matter how large or small, will drastically reduce your credit scores. Although lenders might ignore certain types of collections, it is always best to pay them off.
I strongly suggest that before you start applying for refinance, make sure that all these old collection accounts are paid off and show a zero balance on your credit report. For information on home purchases with bad credit please visit Bills.com.
I hope the information provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/
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