Profile picture for Kannabhai

I have a credit score of 640. Can I boost the score to get better rates. If yes how

I have a credit score of 640. Can I boost the score to get better rates. If yes how
  • November 17 2013 - Franklin
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (7)

Credit score is factored by:
35% - Payment history
30% - Amounts owed
10% - types of credit used
10% - new credit
15% - length of credit history

What would be the quickest way to boost it?  I'd aim for the 30% item - amounts owed.  Pay off lines of credit, pay them consistently, and on-time.
  • November 18 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

There are several different factors when it comes to increasing your credit score.  The best thing you can do, or keep doing is paying all your bills on time.  If you have the means and/or a disciplined budget, set up auto pay with your bills.  Most if not all vendors offer this program, that way the money is automatically deducted and is never late.  There are quite a few other tactics you can use to raise your credit score, too many more to go over in a posting online so if you like, please give me a call and I would love to go over these with you. 
  • November 18 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The simplest way to fix your credit score is to pay off your debt and revolving credit balance on time. Over time, this should help your score. Are you having trouble finding a loan with that current score? You should already have a couple options open to you already. If you want more advice on how your score can affect your ability to get a loan I recommend that you speak with a lender like myself that would be happy to speak with you. Well I hope this helps, if you have any other questions or need a loan please contact me through the information on my profile page.

Good Luck!
  • November 18 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Hi Sid,

There are many ways to boost your scores, but it will depend on what the specific issues are that are lowering your scores.  Is it late payments, high revolving debt in relation to limits, new accounts, excessive inquiries, or another issue?  Each factor that determines your credit score can be improved.

Your best option is to work with a lender to evaluate your credit and your overall scenario to help you to get preapproved and reach your goal of getting the best available rate.

If you're in California, where I am licensed, please contact me and I'll be happy to help.

Good luck!
  • November 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Mortgage rates are better for borrower with higher credit scores.  Typically, there is a break every 20 points (especially with conventional loans).  The sweet spot is really above 740.  If you can make some minor tweaks to your credit and get yourself to a 680, that will also improved your scenario greatly.  I recommend keeping revolving balances below 45% of total allowable credit limit.  You can easily fix this by transferring some balances from one card to the next or opening new cards with low introductory rates and moving some debt around.  Just be to sure to never max out any cards.  Also, if there is any old inaccurate or derogatory item(s) reporting, it would be good to have that removed/updated.  Keep your inquiries down and you should be on track to improving your scores.
  • November 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Credit Scores fluctuate due to a number of things. You can improve your score by making sure your credit cards are not maxed out, A good rule of thumb is roughly half of your credit limit is the best place to be. Limit your new accounts and inquiries. There are many things that affect your score. I would be happy to answer any other questions you may have or pair you with a mortgage broker to evaluate your current situation!
  • November 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I know a local lender who will write loans down to scores of 600 (580 in some cases).
  • November 17 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.