Profile picture for cookie58

i have a credit score of 605

i did have a defaulted student loan now out of default, have letter stating that my other accounts are on time, my hubby has 550 small amounts on several cards not paid can we get a loan
what do we do?
  • February 14 2009 - Knoxville
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Answers (3)

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Profile picture for CG101
I was in a similar situation. I had started my cleanup in early 2007 by rehabbing my student loan. Once it was rehabbed, my score jumped by an average of 40 points. I then had to stuff like department store cards, a secured credit card, and other credit cards that focused on rehabilitating my credit. I now had a mid-score of 680, from high 500s-low 600s, but it took me 2 years of credit bureau disputes, rebuilding credit, etc. The previous answerer is correct, there is no magic bullet. You will have to venture into credit repair (which you can do yourself--don't pay a "law firm" to do it for you). I have a mortgage that is currently FHA @ 7%, but I am refinancing with my current bank @ 5.5% and hope to close 2/18/2008. If I had a better credit score, I wouldn't have to go through so much crap though...but once you finish, it is all worth it.

Good luck.
  • February 14 2009
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CG, that's actually one great story and kudos to you! So many important things to point out.

1) Bad credit costs you more ... a lot more!
2) Bad Credit is not terminal.
3) You don't have to pay a scammer to fix your credit for you.
4) It takes time but it can be done.
5) The reward of good credit can save you tens of thousands over a lifetime!
  • February 14 2009
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Profile picture for wetdawgs
Cookie58:   You have received the answer three times already.   Why do you expect it to change?

At this point, it is not likely a lender will give you a loan.

1.  You MUST take the steps to get your credit scores up.  If you don't know what these are, get some feedback from the credit agencies.  If you have had defaults in the past, you need a solid history of paying on time and reducing your debt ratios.   This can take years of consistent paying, but even a year will help a lot.

2.  You MUST save a substantial down payment.

There are not going to be any miracles.  Getting credit scores up isn't instantaneous.  You have to show that you are consistent with your debts and that takes time (many months or even years).   Apparently you haven't been consistent paying your debts in the past, so you have poor scores.   History is not wiped out by paying the debts, your poor paying history will remain on the record for all potential lenders to see.

If you would post all your questions in the same thread by using the "answer this question" button, it would be far easier for everyone who has graciously attempted to help you.  Otherwise you will burn out everyone.


  • February 14 2009
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