Question: I thought I was doing the right thing by paying down all my debts and > it turned around and burned me!
> I have 5% down, good solid income, and I can afford the mortage > payments…
> Has anyone been through this before that would care to shed some light > on this for me? Is there another way around this? Is this lender > specific?
> Thanks for your comments!
Answer: We had a similar problem. A while back we went through credit counseling. We needed to trade in our car for a van. We got the loan but at a very high interest rate. We were told it was because the credit report listed some of our loans as going through the credit counseling. I guess according to them it meant that we could be a risk for filing bankruptcy, not paying, or if we couldn’t afford to pay those monthly loan payments how could we possibly afford another loan payment. The credit counseling did help though, we got all of those loans paid off in 2 years instead of 15, and they saved us almost $300/month. Once those loans were paid off, that negative remark on our credit reports was removed, (some needed a call to get it removed, but they were all removed). We did not need to wait years for the credit to be repaired, just months, because we traded in that van for another van at a very low interest rate, and since have been able to refinance our mortgage at very low interest rate.
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