I don’t think it’s a good idea either. I have a bunch of debt (we’re not drowning or anything) and we just got the keys to our first home yesterday. We went with a mortgage broker who was able to get us the financing. Of course our mortgage rate isn’t as low as at a bank, but in 3 years we’ll be able to refinance with a regular bank and get our payments lower.
The other issue is that I don’t believe stuff really leave your credit profile. When we were getting hte house they brought up stuff from 1999. And with computers, you never really know what stays on there and what is off. Who knows. They maybe just note your old old stuff in a different column.
Until they invent a time machine with which I can go back and make ‘the other choice’ concerning some decisions I made earlier in life, I think we’re sort of stuck.
Charge-offs and unpaid bills stay on your credit report for 7 years. Bankruptcies are there for 10. Check your credit reports regularly for bad information – it happens frequently. WE have a bunch that shows charge off – then paid after charge off – we have sent them proof of everything being paid and it really doesn’t seem fair that they show it that way since they were paid.
Items remain on your credit report for 10 years and “count” for 7 years. Which is amazing to me because if you messed up at 20 it will haunt you until you’re 30 or longer. If a bad credit rating will help keep you from borrowing again, that’s not altogether a bad thing. 🙂
Do it your self, and it looks bad if you are trying to get other credit, as if you were not responsible enough to pay your bills in a timely fashion, while it does take longer but t is worth it in the long run.