Ok for started my Transunion is 585 and i have been trying to buy a house. I have 3 credit cards that i have maintained less then 15 percent debt over the last 2 years no late payments. I went in to a local mortgage office andI was informed that i have 3 collections out. 1 i knew of the others are 50 dollars each from electric companies which is weird since they gave me my deposit back.. So i settled the 2 with electric companies. The 3rd one that i knew about is a old credit card. last activity date is 06/08 and was sold to another company on 10/2010. It is 7000 balance due. My question is should i be trying to settle with them for a fraction of the cost? Would this actually help me score and allow me to get a home loan? I was also told i could get a loan with 20 percent down and my credit would not matter. So should i just blow it off and keep saving and put 20 percent down which gives me a smaller house payment or should i work on the collection and my credit score? I keep hearing the damage is done leave it alone. Thanks in advance
