N-400 and poor credit?

[Ready to do it 101]

I've applied for N-400, and I am considering stopping paying on a few credit cards.  I have had my green card for 9.5 years and I applied for US Citizenship last month. It appears it should take about 7 months.  Finances are very tight right now. I have not yet been late on any credit cards (never in the past 9+ years), but I am trying to plan ahead and consider the repurcussions if I were to stop paying on a few credit cards. I recognize this would not be good for my credit, but my one and only concern for this question is my N-400 US Citizenship application.  My thought process is perhaps one/any of the examples below could cause a problem for my US Citizenship application under the "moral character" consideration of the application?

 

1) Can late pays on any of my credit cards on my credit report affect my N-400 Citizenship application?

 

2) Can Charge-offs on my credit report affect my N-400 Citizenship application?

 

3) If a creditor or collection agency were to file suit against me for non-payment of credit card debt, could that affect my N-400 Citizenship application?

 

4) If a creditor or collection agency were to win a judgment against me on a defaulted credit card debt, could that affet my N-400 Citizenship application?

 

5) Will they ask me anywhere in the process or at Interview if there are any outstanding legal proceedings against me?  If a creditor were to file suit against me in the next 7 months, I would have to answer, "Yes."  Could that affect my N-400 Citizenship application?

 

Thank you in advance for your responses.  

Edited November 2, 2021 by Ready to do it

[JeanneAdil 6,253]

In the past, debt and bankruptcy wouldn't impact your ability to become a permanent resident or citizen. ... Immigrants applying for a visa, green card, or citizenship should aim for a credit score “near or slightly above” the national average, according to the new rule. The average credit score is 706, according to FICO.Apr 14, 2020

 

[Ready to do it 101]

14 minutes ago, JeanneAdil said:

In the past, debt and bankruptcy wouldn't impact your ability to become a permanent resident or citizen. ... Immigrants applying for a visa, green card, or citizenship should aim for a credit score “near or slightly above” the national average, according to the new rule. The average credit score is 706, according to FICO.Apr 14, 2020

 

Thanks for the response. The "new rule?" What is the new rule. I had not heard there were any new rules regarding credit when applying for US Citizeship.  When one stops paying one's credit cards, within a few months (90-120 days) credit scores will be in the low-mid 500's.  Please let me know more about this new rule. Did that comment about immigrants applying for citizenship... come from somewhere or some sort of requirement?   Are they going to pull my credit or ask me how my credit is?  Thanks!

Edited November 2, 2021 by Ready to do it

[JeanneAdil 6,253]

it is from an article written by Lauren Bringle, AFC®  in Self

 

USCIS does not do a credit check but if your wages are attached or u owe IRS or back child support or have a lien on wages ,  this will show up if IRS returns are attached for these payments and u do have to summit tax returns

 

why not combined the credit cards into one payment with a personal loan and get rid of (so many cards) 

I have but one and a home equity card (which can be used for credit card) but no clothing stores,  gas stations,  etc cards

credit has it up and down sides and u can not let it control u 

[Ready to do it 101]

9 hours ago, JeanneAdil said:

it is from an article written by Lauren Bringle, AFC®  in Self

 

USCIS does not do a credit check but if your wages are attached or u owe IRS or back child support or have a lien on wages ,  this will show up if IRS returns are attached for these payments and u do have to summit tax returns

 

why not combined the credit cards into one payment with a personal loan and get rid of (so many cards) 

I have but one and a home equity card (which can be used for credit card) but no clothing stores,  gas stations,  etc cards

credit has it up and down sides and u can not let it control u 

Thanks for posting the link. 

 

This statement appears factual... Immigration agents can now consider your credit history and credit score when you apply for a different immigration status like permanent residence (otherwise known as a green card).

 

While this next statement, I think she made up... Immigrants applying for a visa, green card, or citizenship should aim for a credit score “near or slightly above” the national average, according to the new rule.

 

Back to my original concern... Can defaulting on debt, judgments, etc be considered as poor "moral character?"  

 

Thanks!

[happytree 19]

On 11/2/2021 at 11:32 PM, Ready to do it said:

Can defaulting on debt, judgments, etc be considered as poor "moral character?"  

 

 

I don't know if there's a valid rule or not regarding this but I would be concerned too. For instance, (let me play devil's advocate here for a sec) when you say "I am considering stopping paying on a few credit cards" it shows that you have no regard for the bank/company who trusted you were going to pay back. Is this a real concern for a N400? I don't know, but again, I don't think it can help your case at all. This would be neutral at best. 

 

However, here's couple ideas  you can pursue:

1. Start working with a debt consolidation agency. You can consolidate your credit cards into a single loan/payment which will save headaches and make payments realistic

2. While this is going, if you haven't been late yet, continue to pay the minimum payment at the very least. Typically this will be ~$50 per card unless you've been late already. Owing money in a credit card is NOT the same as late payment. A credit card payment is considered late if you don't pay the MINIMUM payment 30 days past the due date. If you're still within this time, I STRONGLY suggest to try and make the minimum. Being late will surely hurt your credit drastically while owing money wont.

3. Start following recommendations by people like Dave Ramsay. He's pretty popular online. 

^^^ This will not make your debt disappear, but will provide you with proof to show you have great moral character. You have proof that you are trying to meet your responsibilities even thought life threw you a wrench. If the question ever comes up, you can show that you're doing your best. This is a better answer in my book.

 

And besides immigration... debt consolidation and getting rid of some/all your credit cards will help you improve your quality of life. Having a fixed/known single payment will be much better than 10 bills ever month with collector calls every day. Being debt free will improve your life, believe me.