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Answers (4)
- Preston Garrison, "PrestonGarrison"
- Contributions:64
- Don Groff, "Austin Texas Lender"
- Contributions:119
Most lenders have a requirement of a 620 credit score. I work with some FHA lenders who will go as low as 600 but in any case it has to be a good loan and we would need an excellent letter of explanation on the past issues. You need to review your credit report and see why the scores are so low. Is it caused by recent activity or is it a result of old problems. This will give you a good idea of what direction your credit is trending in. You need to stop the bleeding so to speak.
Also if you do not have any reporting revolving accounts (credit cards) it would make sense to go to your bank and open a secured credit card. If you do this make sure you do not max out the credit card or you will lose any benefits of having the revolving account. Deposit $500 to $1000 with your lender and ask for a credit card that reports to the credit bureau's. Try to keep the balance owed at 30-40% of the available credit. This will help your credit if you do not have much other positive activity and help jump start your scores to start moving in the right direction. Be careful when speaking with companies promising to help your credit as many of them in the end just end up taking your money.
You also want to be careful when settling old debts. If you pay or settle an old debt it actually can make the debt appear more recent and greatly reduce your credit scores. If they are more recent (12-24 months) it may be necessary to pay them off to get a loan. If any older it may actually hurt your credit if you pay them off. Sounds strange but I have seen it happen may times.
If you have any other questions please feel free to give me a call.
Also if you do not have any reporting revolving accounts (credit cards) it would make sense to go to your bank and open a secured credit card. If you do this make sure you do not max out the credit card or you will lose any benefits of having the revolving account. Deposit $500 to $1000 with your lender and ask for a credit card that reports to the credit bureau's. Try to keep the balance owed at 30-40% of the available credit. This will help your credit if you do not have much other positive activity and help jump start your scores to start moving in the right direction. Be careful when speaking with companies promising to help your credit as many of them in the end just end up taking your money.
You also want to be careful when settling old debts. If you pay or settle an old debt it actually can make the debt appear more recent and greatly reduce your credit scores. If they are more recent (12-24 months) it may be necessary to pay them off to get a loan. If any older it may actually hurt your credit if you pay them off. Sounds strange but I have seen it happen may times.
If you have any other questions please feel free to give me a call.
- Be Ga, "bagnn"
- Contributions:526
wetdawgs is correct.
Do you have a copy of your credit report?
What is the reason (s) for such a low credit score? did you only check one or the 3 bureus?
If you have collections... pay them in full or negotiate them, either in a one payment or in payments, but pay them.
Late payments? , then you need to pay all your credit on time for at least one year without incurring on more debt neither new credit lines.
How many credit lines do you have? 3, 4 ,5?
Do you have a copy of your credit report?
What is the reason (s) for such a low credit score? did you only check one or the 3 bureus?
If you have collections... pay them in full or negotiate them, either in a one payment or in payments, but pay them.
Late payments? , then you need to pay all your credit on time for at least one year without incurring on more debt neither new credit lines.
How many credit lines do you have? 3, 4 ,5?
- wetdawgs
- Contributions:26833
My credit score is 593 is it possible for me to buy a home, with this low of a score.
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