A quick question on credit

[MarineMp]

I have 3 cards that are around 300-400 each in collections at the moment. Lack of jobs.hours, and just about everything else in michigan is screwed. I thought i would get out of the marines and do some good.. yeah good ol MI. Anyway i am applying at an agency and i have my packet, it asked a lot about credit. My questions is will 1500-2000 in debt screw you out of a chance? All the rest i am good on, My 2 year degree in criminal justice,I was a k-9 officer in the marines. I have never had a ticket, nor ever been stopped by police. I did two tours in iraq so stress i am ok with. I scored an A ban on my mcoles and passed the physical test with ease.


well i hope i can get some feedback before i waste my time.

thanks

[Roger Dat]

Going to need to find a way to get them out of collections and somehow on a payment plan. Credit is important part of a background exam. It can potentially expose you to things such as dishonesty and bribery moreso then someone who is current . Not saying you would but its those hypothetical what if questions.

[Wolfman]

It is not so much credit, but spending habits and not having any credit hits. In other words, if you are in debt above your means to pay off or that would put you in jeopardy (in the hiring board's opinion) of taking money/dishonest dealings, then it will hurt you.

If you have missed paying off a credit card company and they put it on your credit report, then that could hurt you due to the board thinking it was irresponsiblity on your part (regardless if it was or not).

If for some reason the cards have made a mistake on their end, and it has been corrected, then it would be a good idea to present that letter of correction with your credit information so that they can already have that.

I don't think that $1200-$1500 is a LOT of credit, but you should have a plan to pay it down, and if asked let them know that you have a solid plan to pay it down. If it was racked up on very unnecessary/spur of the moment things then try to curb that in the future just so that it won't show or have the possibility of hurting you later.

I don't want to know what it was spent on or anything, I just wanted to put out how the board can see it, and how could possibly overcome it in their eyes.

Hope it helps, and good luck with everything.

Thank you for your service to your country and Semper Fi,

-Wolfman

[MarineMp]

Thanks for the replies, yes i have a plan. I am getting 2 gi bill payments this year. I plan on using them to pay most of it off.

[mcsap]

So what are you doing NOW to pay them off ? Ditch cable TV ? cell phone ? expensive car ? Got some toys to sell ?

Pick the lowest amount you owe and then pile all your payments into it. When that is paid off, tackle the next one up. Keep going until you are paid off.

You afraid to take a 2nd job ? Deliver pizza or whatever but get some income to erase that debt.

[Darin]

Currently having debts in collections WILL be a problem. I'd wait until they are paid off before applying and even then you may have to put some time between that and applying.

[AmarulaCream]

What if you just have credit card debt because you enjoy paying interest charges... ok thats a bit ridiculous, but I have some debt and I have never been late or gone to collections... I am not expecting much trouble in this regard... I have a strong credit score too.

[mcsap]

A lot of people have/had debt. Anyone who has a mortgage has debt. A lot of people with CC's have debt ( I have never let a CC purchase go over 30 days ) .

The issue begins when you don't make your payments AND they end up at a collection agency. And it compounds when you take no substantial moves to either stop spending or pay down the debt ( not just make minimum payments).

[AmarulaCream]

A lot of people have/had debt. Anyone who has a mortgage has debt. A lot of people with CC's have debt ( I have never let a CC purchase go over 30 days ) .

The issue begins when you don't make your payments AND they end up at a collection agency. And it compounds when you take no substantial moves to either stop spending or pay down the debt ( not just make minimum payments).

So just having debt in good standing is not a huge deal...?

If I were the NYPD I would look at potential applicants who are deeply in debt as potential corruption risks given the terrible salary they are about to take on...

[Darin]

So just having debt in good standing is not a huge deal...?

...

No it's not a huge deal as long as it isn't too much debt to income. As long as your debt is in good standing you're good.

[mcsap]

The amount of debt you carry should be in proportion to your income and your lifestyle.

If you make 50 K a year and have a 30 yr mortgage for 175k, that is not a problem.

If you make 50 K a year and have the 175 K mortgage , PLUS a 500 month carpayment and another 10K in CC debt from going to Las Vegas and the CC is into collections ...

[asafermichigan]

I can speak for MSP only but they look at it as a very serious part of your packet. I agree with Roger Dat - find a way to get them out of collections. Good luck to you..