Paying Credit Card Debt
I've been trying to invest for almost a year but with my credit scores I cannot get a lender to finance my rehab projects.
My FICO Scores are:
Trans Union: 593
Experian: 610
Equifax: 572
I have one credit card and the balance is high, if I pay it off will that improve my score?
Definitely!!
That could very well be your answer, pay down the credit card. Try to pay something on it every two weeks instead of just once a month. You will find that your interest will drop dramatically. Then you wont have a minimum payment due, but don't fall for it...just keep paying something on it. I did mine this way, and they ended up paying me (wasn't a whole lot, but I was happy anyway). If you just pay an extra 20-40 a week extra (the money that you would have otherwise spent on something useless), you will be free from that jail in no time.
Good Luck,
Source[ Edited by Sourcefinance on Date 01/03/2004 ]
Thanks for the information. I plan to pay it off in full this week. I found a hard money lender that will work with people with a score of 600. Hopefully, this will increase my score.
A good site for credit questions is http://www.creditboards.com. Read through all the forums many ways posted to better fico score. I would read this site before attempting anything.
[ Edited by wpruett on Date 01/03/2004 ]
Information is here:
http://www.creditinfocenter.com/creditreports/scoring/
Best advice: have a handful of bank cards with low balances in relation to their limits.
Have an auto loan now, or showing as paid off.
Have a mortgage with a perfect payment history.
Don't pay the balance off in full! Trust me! The key is using under 35% percent of your credit line. Do visit the www.creditboards.com as stated above.
Example: I sold and paid off a vehicle in October and my credit score dropped 14 points.
I find it hard to believe that the only hard money lender you can find requires a 600 score.
As far as Florida lenders are concerned a 600 score is GOOD credit.
Hard Money may be more competitive down here but I find it hard to believe the difference is so big.
They lend to people with scores below 500. They lend to investors who have had bankruptcies and possibly even foreclosures if your story is good.
Their primary interest is the value of the HOUSE. If they are lending 65% or less of the ARV and you dont seem like you run out on your cable and phone bill in addition to credit cards, then you can find money.
Just MHO.
Good Luck,
N.
As many low-0% interest rate opportunities that exist, it may be a good idea to transfer the high balance to a lower rated card, then begin paying it down? I don't know what, if any, ramifications the transfer has on your score, though...just a thought.
Neill7
I've been researching hard money lenders for months and I have not found one yet where credit does not matter. I was under the impression that they do not pull your credit because the loan is based on the property.
I was referred to two by a mortgage broker that require scores of at least 680.