569 Score
Hello All
I have a very important question take, does anyone here know off the top of there head how long it would take to get a mid 600 credit score. Right know my score is 569 and i've been paying all my bills on time for the last year and 4 monthes. I have 4 credit cards which 3 of the 4 have been paid on for the last year and 4 monthes and the other is only 3 months old.I also have 2 new car loans one is 3 monthes old and the other is 2 mothes old. i really want to get into real estate and buy a home as well do you think 6 monthes is asking to much to have a mid 600 score if i keep paying my bills on time .
you could be hurting your dti with those car loans.
the car loans were a must, reason being i had 2 cars in 2000 before my credit got messed up and they were leases. The credit situation came about in 2001 and i didn't expect for my credit to get bad. And at lease end the dealerships said that if i just turned in the cars without paying the milage fees, it would go on my credit as a repossesion. And im trying to fix it not make it worse. being honest i didn't think that i could even get a car loans with the way my credit is.But some how i was approved by ford and capital one.
bringing your credit score up to 600 in 6 months could happen - it's really hard to say. Credit scoring is such a mystery. One thing that would be helpful is to pay down your debts, if they happen to be close to your max limit. This could hurt your score.
Hello
Maybe I can help you, I do something called a simultaneous closing. Which bascially means I buy a recivable rather then loan money. For instatnce if a seller carries a note I or investors I deal with will buy the note under contract from the seller. Leaving us with a mortgage note which the buyer now pays us for the home..
Sounds conufusing. There are guidlines we do follow we only buy , maxium ITV is 80% when the credit score and other consderations come into factor our investment to value goes down sometimes to 65 or 70%.
Now what does this mean to you, WE can get you into a home bascially were others will not even look at you We will.
Your credit score can be as low as 525 I had to look it up, So I am sure its about as low as we can go, You would have to work two years at your job your debt to income ration would have to be around PITI+Debts 45% And the down payment would have to be 2 months seasoned which just means you have to pay for two months, while under contract from us othere wise we wouldnt want to do the deal.
We do go through some paper work, We want to do our due diligence.
But it is a way for you to get into a home..
I would look for homes if you were interested that at least had 35 to 40% equity and where the owner will owner finance and take a second and let us take a first.. est. 70%...
The deals and homes are out there but you do have to look. And sometimes we can get you in with no money down or to 5% it all varies though.
This is just a idea, All I am trying to do is give you a suggestion, OF what I do that can help you out ..
After all thats what life is about helping people out..
Aaron Kaggie
**Please See My Profile**
I've read that just having credit cards, even with a zero balance will lower your credit score. Reason being, creditors see it as you having the ability to run up your debt very quickly. Try closing one or two of those zero balance cards and see how that changes your score.
scooter318,
SeeIfReadingThisHelps....
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=334
or
https://www.econsumer.equifax.com/consumer/forward.ehtml?forward=improving_yourcredit
....as always,
GoodInvesting, Rocky
I hope I can help you because I went through the same thing. My credit 3 years ago was 598 and now it is 716. My advice is this..... Paying off what you can will help. Try to make deals with your creditors ahead of time that if you pay immediately, ask if they will purge and delete the tradeline. Some will and some won't but if they don't, pay them anyway. Each creditor that is paid-off could raise your score about 20 points. Also, keep disputing Items. I know that equifax temporarily raises your score while items are in dispute. Also, continue to pay on time and keep your credit cards around 10 to 25%. Don't worry about having a zero balance just keep the balance low. Unfortunately this is a slow process but don't let it discourage you. Fight the things that you can and pay the things that you can't fight. Also don't let people pull your report unless it is absolutely neccessary. Always pull your own report about once every 2 months and pull your own credit scores to see where you are. Don't be afraid to tell potential lenders that you know what your score is and you will let them pull a report when you decide you want to make a deal. They can usually tell you what your score should be for certain programs and they also understand. If you follow this advice accordingly based on what you posted, you should be at around 620 within 18 months which should allow you to get into many real estate programs,(just not with the best terms), but you gotta start somewhere. A score of 750 is based more on time and you will need a longer credit history to get a score that high. (about 7 years without problem). Most lender consider above 680 to be great and 720 to be optimal credit. Just keep at it and it may happen faster than you think.
first call all your creditors and ask for credit increases, this will lower your dept to credit, which will automaticly raise your score, (you can do this every six months) they will do this if your accounts are in good standing.
Second try this: take $ 500.00 put it in a cd or a savings acount, use it for security to loan the same amount. Take the loan money to another bank and due it again. Three places should due the trick. as a previous post mentioned make sure the loan is for at least 6 months in length or it will not be reported to the credit burrows.
this will cost you a little to get the loans, and a little in interrest because the amount is not that high.
MAKE SURE YOU MAKE THE PAYMENTS ON TIME
John
Your biggest problem is that all of the accounts you have are opened recently. If they are open at least for a year, have no lates, and your balacne is less than 50% of your credit limit, you score should go up to 600. Just remember, 620 score is cut off score for many lenders, if you try to get comforming loans.
try going to:
myfico
dot
com
Some info on there that may help you to better understand things also.
B. Free [ Edited by B_Free on Date 09/08/2003 ]
All the above is correct I raised my credit score almost 100 points in less then 30 days just by fighting a few items on my report went from 586 to 672. I'm now in the process of doing the secured loan thing and attempt to raise my rating. Just do as everyone above has stated and you'll do fine.
Terry
Doesn't asking for a credit increase put another inquiry on your report and therefore reducing your score?
A few things I saw in an article on CNN/Money.
Not being a senior investor may prevent this from appearing.
http://money.cnn.com/2002/02/15/debt/q_fivethings_creditscore/index.htm
If you are going to close out credit cards then close out the newer ones. Having the older one's on file show a longer history of lending (which is better).
Concering alot of credit information pulls on your account. Most agencies treat all pulls as one so long as they are within a few days.
If the above link works (remove the spaces) it will tell more ways on how to improve your score.
Best of luck[ Edited by Lethe on Date 10/07/2003 ]
There's a website called
****Must Reach Senior Investor status before posting URL's***
They have many pages on credit scoring, just click on the link to the left, and click on the one with the word "influences" in it. That's the most valuable one. Explains how Fair, Isaac does it in pretty good detail.
creditinfocenter is the site name
Quote:
On 2003-10-07 17:24, dsidhu wrote:
Doesn't asking for a credit increase put another inquiry on your report and therefore reducing your score?
dsidhu,
I was born in Bakersfield, and still have a lot of family down there. nice seeing someone nearby.
If you pull your own credit it is called a "Soft Inquiry" and won't hurt your score. If another company pulls it, it is considered a "Hard Inquiry" and if you have a lot (10-20+) that can affect your score by a few points.
When you ask for a limit increase most banks do a soft inquiry under account review or something, ask them before you do it.
It seems like closing your 3 month old credit card might help. Three credit cards are all you need.
If you are going to close accounts, close your newer accounts.
Closing accounts don't necessarily help you in raising your score.
Plenty of people try to raise there score by closing their accounts. Remember, Lenders want to see a history of payments. Even if that account is a high interest account, if it's an account that you've had for more than 2 years, it's an account that you want to keep open. Just pay the balance down to a manageble level.
good luck,
Beau
hey scooter , I have helped people in your exact situation. I have some basic helpful info I can email to you if you email me your adress to **Please See My Profile** This info will tell you how to boost your credit score and how to correct credit problems. You definitely CAN get that score to 600 and beyond in just a few months! the quickest way to re-establish your credit is to get a major c. card ( master c., visa c., american ex. ... you get the picture) and use it regularly for gas or groceries and PAY IT AT THE END OF THE MONTH. if you can not do this don't get another card! also note each time you let someone do a credit check it lowers your score. Only when you order your credit or for example an employer does a check that does not effect the score. Anywho If you want to become a homeowner you can do 100% financing with a minimum 620 it used to be 580 but lenders are frowning on that but it is still a possibility. also the previous advice given is correct in that you must take in to account your debt to income ratios and can you go full income docs or stated? many paramenters to cover... I would not house hunt until you have scored the financing however you choose to go... investor or conventional. I started as a loan agent and am now in real estate so I can hook you up with an assoc. if you want to check other options.
Best of luck
There is a new way you can manage your credit and take full control over your finacial live.
This is going to be the futuristic way of the credit and finance world, first you have control over your credit score ,and it will save you a lot of money over the years on interest rate, and you will be protected from credit and Identity fraud.
This is going to change the lending industry,and lenders are not going to like it.
But it will help the economy , because it will help to get Americans out of debt.
If you like more information about this, please e-mail me.
RK
i have recently been contesting some accounts on trans union and experien. Everything I have read says do not close out any credit cards that it could hurt your score. The biggest thing is to check all three reports. I found an auto loan with a 10,000 balance that had been paid off for 2 years. On another I found that they had my home as being charged off in a bankruptcy. I've never missed a payment on home. You have to go over reports with fine tooth comb and challenge anything you find wrong.
Just a little newbie input
If your credit is 569 you have some negative items on your report . Only one way to fix it. Order all 3 copies of report and dispute all negative items, and re dispute if neccesary. you will be in mid 600s no problem in 6 months. good luck 8-)
Here is a trick a client told me. His credit score was 840! He would increase his credit limit everytime he was pallning to make a major purchase and lower it when he had no intentions of using the card for a while. He would rotate his credit cards and only use one card during any givien time with high credit availabilty and all the other cards were zero balance and very low reduced credit limits.
Very importantly, he never ever approached 75% of credit available. He always stayed below 75% and if was planning on a major purchase he would use two cards to spread the balance.
With a credit score of 840, he obviously has learned what needs to get done to get there.
Phil
Quote:
On 2003-10-07 17:58, flacorps wrote:
There's a website called
****Must Reach Senior Investor status before posting URL's***
They have many pages on credit scoring, just click on the link to the left, and click on the one with the word "influences" in it. That's the most valuable one. Explains how Fair, Isaac does it in pretty good detail.
I could not find the website you are referring to, am I missing something?
Why risk and use your own credit when investing, it's not needed. I have good credit but who cares, I don't use it. I'm not sure what methods of investing your trying to get into, but you don't need your credit to invest. flipping, wholesaling, retailing, sub to, lease/options can all be done without your credit. Use some of these methods, pay everything off and if you still want to use your credit after that point.....go for it.
Inquiries don't neccessarily affect your credit as MANY people suggest that they do. I do loans for a LIVING and I have seen someone have 20 something inquiries and it didn't kill their score.
Credit is formulated on many variables so it is not possible for ONE ACTION to
have an adverse impact on your situation. This is what I know from experience, reading through various materials and referencing Fair Isaac's website.
Also, YOU CAN GET 100% FINANCING ON A PURCHASE (Owner Occupied) everyday all day with a 580 credit score.
But your debt -to- income ratios must be in order!!!!! You can't be upside down and EXPECT a lender to say "here, have some money".
Good Luck
Loandocs
I gave back property in 1987 and know that credit repair works...by 1992 I was probably around 650 and now +-800...remedy for me was: routine annual increases in available credit, pay off autos, carry no balances, pay timely, rotate use of cards to maintain active history on each, routine mortgages on rental property at fixed rates, 30 yrs...slow and steady with very low risk...maintain very low debt:income ratio...very boring & tons of equity to close quickly on the right deals.
Ditto the other valid advise...and I personally use Discover for all payments possible, incl. utilities, ins. premiums, and credit the monthly rebates to my account, always paying in full every month...disciplined increase of exiting account limits as well as new accounts each year will yield very low use % of avail, credit, possibly 2-5%...really boosts FICO...my last mort. broker claimed only the borrowers >800 had employed these strategies...best of luck.