This topic contains 4 replies, has 5 voices, and was last updated by Anonymous 8 years, 3 months ago.
- May 5, 2011 at 7:20 pm #206000
I checked my credit score about a month ago on freecreditreport.com and my score was 665.
This month I apply for a loan to purchase a home and because I had 2 credit cards almost max out my credit dropped to 590 (that is the score that the loan officer told me I got).
I already fixed this problem … I paid almost half of the balances on both credit cards.
I would like to pruchase a home as soon as possible. How long should I wait to see my credit score go up???
Do I need to do something else.
Your advise is greatly appreciated.
- May 6, 2011 at 3:58 pm #262032
Something most people don’t realize is that there are 3 major credit bureaus out there, but there are hundreds of credit companies. So, when you pull your credit from freecreditreport.com, your broker pulls your credit from another credit report company. The scores are not going to be the same. A broker will send the credit he pulled to a lender and the lender will pull their own credit to make the final loan decision with those scores.
You can get 100% sub-prime or non-conforming financing with a middle score of 590.There are tons of brokers that do these loans now. Your rate may be a little higher, but if you make your payments on time, you can refinance after 5 or 6 months and get a lower rate. You can also find brokers that do FHA loans. These are not as credit driven and you can get a lower rate doing a FHA loan.
Your best bet is to call several different brokers and see what they can do for you.
- May 9, 2011 at 12:20 am #268740
Mike Racer is correct but you can also add points just by opting out with all 3 reporting agencies for any credit card offers. You know the unsolicited ones that come in the mail daily. Your score will go up just by doing that as well.You only need a 620 score with clean rent and other pay histories to buy a home now with the best rates, just so long as you can prove collateral capacity to pay with reserves and you get the score to that level at least. Other wise you can get 100% financing now in the sub-prime markets
I am a mortgage banker in Tennessee.
- May 10, 2011 at 3:37 am #270276
An easy way to boost your score a little is to apply for a few store issued credit cards or gas station cards. Use the card once for a small purchase, pay the balance immediately and then tear the card up. It will be reported as to the credit bureaus as paid in full. Only do this a few times as if you apply for dozens of cards at once, it will drop your score.
- May 19, 2011 at 11:18 pm #282263
It will probably take some time.
I had bad credit from my previous marriage but got credit score by over 125 points. I had to wait over a year in order to get a good loan with a good rate to buy a house. I don’t think there is a way to get it up fast. Pay your bills on time and get the credit cards down even lower and/or get rid of one altogether. Good luck. Google “how to improve credit score”
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