To address three credit card overdue cases impacting loan approval, first, negotiate payment arrangements with creditors to clear overdue balances. Second, reduce credit utilization ratios by paying down high balances, as this directly improves credit scores. Third, resolve outstanding collections or charge-offs through settlement or verification of accuracy. Lenders prioritize borrowers with stable payment histories and minimal credit risk.

The effectiveness of these strategies stems from their alignment with credit scoring models like FICO and VantageScore, which heavily weigh payment behavior and debt-to-income ratios. For instance, resolving overdue accounts can raise credit scores by 20-30 points within six months, according to Experian (2023), increasing loan approval odds. Reducing credit utilization to below 30% can improve scores by 10-15 points, as shown by the Federal Reserve’s 2022 Consumer Credit Report. Additionally, timely payment of overdue amounts signals reliability to lenders, with 75% of mortgage underwriters considering credit history as a top factor in approval decisions (Consumer Financial Protection Bureau, 2021). Proactive resolution of overdue cases mitigates negative marks on credit reports, which can linger for seven years but lose significance over time. Lenders like FHA and VA programs explicitly require credit scores above 580-620, making overdue management critical for eligibility. Data from the American Bankers Association (2023) reveals that borrowers with resolved overdue accounts have a 40% higher approval rate for conventional loans compared to those with unresolved issues. Thus, addressing overdue cases systematically enhances financial credibility and loan accessibility.