Posted on: 11th Jul, 2010 04:56 pm
I have a 576 because of a car repo about ten years ago and some late bills and young irresponsibility. I am looking into purchasing a first home but is it even worth getting my hopes up in this economy? Thanks and Hello to all.
Welcome mattmulaire,
A car repossession which took ten years back should not have much affect on your credit score now. However, I guess, you haven't taken steps in order to improve your credit. It would have been better if you could have taken steps to improve your score. With a credit score of 576, it won't be possible for you to qualify for a loan. You should increase your score to at least 620 in order to qualify for a FHA loan.
To know some steps in order to improve your credit score, check out the given page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
A car repossession which took ten years back should not have much affect on your credit score now. However, I guess, you haven't taken steps in order to improve your credit. It would have been better if you could have taken steps to improve your score. With a credit score of 576, it won't be possible for you to qualify for a loan. You should increase your score to at least 620 in order to qualify for a FHA loan.
To know some steps in order to improve your credit score, check out the given page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
"You should increase your score to at least 620 in order to qualify for a FHA loan. "
FHA requires a minimum 580 credit score, not 620!
FHA requires a minimum 580 credit score, not 620!
There are FHA lenders that still work with as low as 500 FICO scores. I'd still recommend you get your score up to a 620 level as you'll have many more options.
I'm with Shane - work at bumping your score to as high a level as possible. If that 10 year old repo has kept you from obtaining sufficient new credit of a favorable nature, that's a shame. From 576 to 620 isn't far, but with limited amounts of trade, it's a lot of work and it might take you quite some time. It's a definite plus to be able to bump your score and qualify at a higher level.
First off, you should make sure that the repo is gone from your credit history. That alone might be able to get your score up. You should pull your credit history from all three credit bureaus and see what's on it.
*VERIFY THAT THE INFORMATION IS ACCURATE*
If it is not, dispute it. Stay on them until they remove it. In the mean time, get yourself a store card. Charge small balances and pay them off at the end of the month. Make sure that the bills you do pay are paid ON TIME ALL THE TIME. Get your utilities to report on your credit. Having positives report can also raise your score.
*VERIFY THAT THE INFORMATION IS ACCURATE*
If it is not, dispute it. Stay on them until they remove it. In the mean time, get yourself a store card. Charge small balances and pay them off at the end of the month. Make sure that the bills you do pay are paid ON TIME ALL THE TIME. Get your utilities to report on your credit. Having positives report can also raise your score.
I have no issue with your suggestions about the repossession and store credit card, Lisa, but finding a utility company to "report on your credit" is a big stretch. These are typically not reported by any utilities on any credit report, from what I've seen throughout the years. And a company certainly isn't about to make the exception for a small percentage of customers, let alone a sole individual.
I would have to also suggest, in order to build credit, that someone obtain a secured credit card. Your favorite mortgage lender, BofA, happens to offer that to customers. They can also be found in many cases with credit unions (an even better source). What I will warn about is that people ought to avoid outfits that are headquartered in Delaware, where lending policies are bank-friendly and consumer-unfriendly, or the companies like First Premier, which (to me) simply rip off consumers who are unaware and struggling.
From what I read here earlier, it seems the repossession has been a hindrance to the opening of new credit - either by choice or by dint of it having been reported on credit in the past. It'd be rare to see it continue on credit reports, unless there've been transfers of the debt from one agency to another over time. I agree that it's imperative to verify the accuracy of the information that's being reported.
I would have to also suggest, in order to build credit, that someone obtain a secured credit card. Your favorite mortgage lender, BofA, happens to offer that to customers. They can also be found in many cases with credit unions (an even better source). What I will warn about is that people ought to avoid outfits that are headquartered in Delaware, where lending policies are bank-friendly and consumer-unfriendly, or the companies like First Premier, which (to me) simply rip off consumers who are unaware and struggling.
From what I read here earlier, it seems the repossession has been a hindrance to the opening of new credit - either by choice or by dint of it having been reported on credit in the past. It'd be rare to see it continue on credit reports, unless there've been transfers of the debt from one agency to another over time. I agree that it's imperative to verify the accuracy of the information that's being reported.