Posted on: 24th Mar, 2010 01:27 pm
I have been trying to get a mortgage. My credit is in the high 5oo's. can any one help with trying to get a loan.
Welcome rachau,
You haven't mentioned what your exact credit score is like. FHA loans are available at a credit score of 600-620. You can try to increase your credit score to that level and apply for FHA loans in order to buy a home.
You haven't mentioned what your exact credit score is like. FHA loans are available at a credit score of 600-620. You can try to increase your credit score to that level and apply for FHA loans in order to buy a home.
Hi Rachau,
Most lenders now require a middle score of at least 620 to qualify for pretty much every mortgage program out there.
Here is some advice on what you can do to try and bring your scores up.
The first thing you want to do is learn as much as you can about the credit scoring system/model. You can find a lot information by going here: "http://www.5stepcreditrepair.com"
Once you understand what affects your score and how, you'll be better prepared to take action.
You can also go to: "http://www.optoutprescreen.com" and opt out of having your information sold by the 3 credit bureaus and stop creditors from pre-screening your credit for the "pre-approved" credit offers you receive in your mail.
If you do not have open and active accounts on your credit, you'll want to add some. You can start with any of the following options.
1) Secured credit cards.
2) A secured bank loan.
3) Authorized user accounts - this can be done by having your parents or others add you to their existing credit cards as a authorized user.
Here are some other tips.
1) If you have any open collections try and negotiate a pay for delete agreement. This doesn't always work but getting just 1 collection deleted form your credit can raise your scores by 20+ points so it's worth the effort.
2) If you have a late payment on an account, call the creditor and ask for a one time courtesy delete. Again, this doesn't always work but it's worth it.
Thanks and good luck!
[External links deactivated as per forum rules. Thanks.]
Most lenders now require a middle score of at least 620 to qualify for pretty much every mortgage program out there.
Here is some advice on what you can do to try and bring your scores up.
The first thing you want to do is learn as much as you can about the credit scoring system/model. You can find a lot information by going here: "http://www.5stepcreditrepair.com"
Once you understand what affects your score and how, you'll be better prepared to take action.
You can also go to: "http://www.optoutprescreen.com" and opt out of having your information sold by the 3 credit bureaus and stop creditors from pre-screening your credit for the "pre-approved" credit offers you receive in your mail.
If you do not have open and active accounts on your credit, you'll want to add some. You can start with any of the following options.
1) Secured credit cards.
2) A secured bank loan.
3) Authorized user accounts - this can be done by having your parents or others add you to their existing credit cards as a authorized user.
Here are some other tips.
1) If you have any open collections try and negotiate a pay for delete agreement. This doesn't always work but getting just 1 collection deleted form your credit can raise your scores by 20+ points so it's worth the effort.
2) If you have a late payment on an account, call the creditor and ask for a one time courtesy delete. Again, this doesn't always work but it's worth it.
Thanks and good luck!
[External links deactivated as per forum rules. Thanks.]
Secured C cards are a great way to build credit, as they're essentially 0 risk.
To be honest, you might find someone willing to lend to you witha bad credit score, but the interest rates would be punitive.
even if you can get a loan you're probably better not to until your score is better and you can get more favourable terms.
To be honest, you might find someone willing to lend to you witha bad credit score, but the interest rates would be punitive.
even if you can get a loan you're probably better not to until your score is better and you can get more favourable terms.