Posted on: 01st May, 2010 04:31 pm
how do i go about getting a home loan with a credit score of 595, this site is new to me so i might of posted twice.
thanks to anyone that can help,
i have no credit cards and have never had any. or any bank loans, ive never really looked into credit/ credit score till recently.
thanks to anyone that can help,
i have no credit cards and have never had any. or any bank loans, ive never really looked into credit/ credit score till recently.
You will find it difficult to get a home loan with a credit score of 595. Particularly since FHA requires a credit score of 620 and other lenders will as well.
It sounds like the biggest issue with your credit score is that you don't really have any credit history. Without credit history, it is difficult for lenders to assess what sort of credit risk you are. So they will treat you as a risk until you prove otherwise.
So step 1 will be to establish some credit history. The easiest way to do this is typically by getting a credit card. Use it to charge some of your purchases each month and then pay them off in full each month. Make sure you don't charge more than 30% of your limit in any given month, as this can negatively affect your credit score.
It sounds like the biggest issue with your credit score is that you don't really have any credit history. Without credit history, it is difficult for lenders to assess what sort of credit risk you are. So they will treat you as a risk until you prove otherwise.
So step 1 will be to establish some credit history. The easiest way to do this is typically by getting a credit card. Use it to charge some of your purchases each month and then pay them off in full each month. Make sure you don't charge more than 30% of your limit in any given month, as this can negatively affect your credit score.
ive tried to get a credit card but always getting turned down due to lack of credit, i went to one of these small loan places in the town i lived and just recently got a loan for 310 dollars owning back 450 i believe, making payments of 70 bucks a month, they told me after 5 payments they will report my credit history to my credit and should help, so far im on my 4th payment and have been on time on all of them, i asked if i was to get the loan and then just pay it off within a month or 2 if that would help they said it would actually prob. hurt my credit, so ive just been making the 70 dollar payment and have a few left then it will be done and paid off and hopefully will boost my credit score alittle if this does then im going to go ahead and do it again a few times, even the interest is insanly high, i guess you gotta do what you gotta do to get it built up.
ive tried to get a credit card but always getting turned down due to lack of credit, i went to one of these small loan places in the town i lived and just recently got a loan for 310 dollars owning back 450 i believe, making payments of 70 bucks a month, they told me after 5 payments they will report my credit history to my credit and should help, so far im on my 4th payment and have been on time on all of them, i asked if i was to get the loan and then just pay it off within a month or 2 if that would help they said it would actually prob. hurt my credit, so ive just been making the 70 dollar payment and have a few left then it will be done and paid off and hopefully will boost my credit score alittle if this does then im going to go ahead and do it again a few times, even the interest is insanly high, i guess you gotta do what you gotta do to get it built up.
1) Obtain a Secured Credit Card that reports to the major credit bureaus. Don't pay the card off each month but pay it down. Leave a $5.00 balance. This help increase your debt utilization rate.
2) Obtain a secured loan through your Bank or Credit Union.
3) Settle any collections you may have. Make sure you have an agreement in writing that the settled collection will be reported as 'Paid As Agreed' or 'Paid in Full'. Do Not accept 'Paid Settlement'.
2) Obtain a secured loan through your Bank or Credit Union.
3) Settle any collections you may have. Make sure you have an agreement in writing that the settled collection will be reported as 'Paid As Agreed' or 'Paid in Full'. Do Not accept 'Paid Settlement'.
great information you write it very clean. I am very lucky to get this tips from you.
Collectios are never going to say ''paid as agreed''. Because they were not. Wouldn't have been a collection if the account was paid as agreed.
Secondly if you are seeking financing fairly soon DO NOT pay off collections as you scrore will drop temporarily after paying off the collection.
The other two tips above are good and just continue to monitor your report to make sure nothing erroneous appears.
If the lender requires collections to paid be they can be paid at closing and therefore the temporary dip will not matter.
Secondly if you are seeking financing fairly soon DO NOT pay off collections as you scrore will drop temporarily after paying off the collection.
The other two tips above are good and just continue to monitor your report to make sure nothing erroneous appears.
If the lender requires collections to paid be they can be paid at closing and therefore the temporary dip will not matter.