How Will A Mortgage Application Be Impacted If I Don’t Pay My Credit Card?
The debt will likely show up on credit reports. If it does show up you will need to pay it off.
If an unpaid debt is on your credit report a lender will ask for an explanation. You can then write that there was a debt, there was bad judgment, you realize you were wrong, you now have a better understanding of credit and yes, you will pay off the debt. In other words, “Dear Lender: I goofed and it won’t happen again.”
If the matter happened several years ago but the debt has since been repaid it should not be an issue to lenders if your credit during the past two or three years is otherwise good.
However, why raise the issue with lenders? The debt has to be repaid anyway, so why not pay it off on time and without a penalty or credit report ding?
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