There are many unanswered questions even though you have given us a lot of detail and thank you for that. I'm sure there will be other lenders that will see your question and perhaps can give you a more specific answer.
Don't give up.
First, make sure that there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts is correct. If you find errors on any of your reports, dispute them with the credit bureau and reporting agency.
Secondly, Making your credit payments on time is one of the biggest contributing factors to your credit score. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. But make sure you pay more than the minimum payment, that will help a lot.
Lastly, This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards.
P.S. If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.
The good news is that we are able to finance FHA loans with credit scores as low as 580 and only 3.5% down! Feel free to apply online at http://www.rhlapps.com/kjones or give me a call. You may not need to worry about getting your credit score any higher. :)
The websites that give you credit scores are usually inaccurate. Have you had a lender pull your credit report?
If you would like specifics, go to http://www.Zip711.com and click the Trulia menu tab.
I interview prospective buyers and sellers on a regular basis. I would be glad to speak with you once you have spoken with a lender and have a letter of prequalification. If you would like a list of local lenders to consider, please contact me at Zip711.com.
Carolyn Grimsley, CRS, ABR
Certified Residential Specialist, Accredited Buyerâ€™s Representative
Licensed by Louisiana Real Estate Commission
Realty Executives SB
In Bossier, 4012 Benton Rd suite 110
In Shreveport, 8575 Fern Avenue Suite 105
Each company independently owned and operated
We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.
It is unlikely you could be approved for mortgage financing with that credit score at this time.
Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.
First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.
Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.
I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE. http://www.consumer.ftc.gov/articles/0058-credit-repair-how-
The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.
The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
*If you thought my answer was helpful, please give me a â€œThumbs Upâ€ or â€œBest Answer.â€ Thanks!
Have a great day.
CEO & SR Credit Repair Specialist
Everlasting Credit Repair
Very frustrating, I know. I would strongly suggest that you do a little research to find a local lender that specializes in credit repair and/or first time home buyers. They will be able to pull your credit scores ad go over the details of each of them. Then they will be able to assist in telling you how to improve your credit - what you are doing right and what if anything you are doing wrong.
Also, know that sometimes the corrections and payoffs at the credit reporting agencies are very far behind and may not reflect what you have done to improve those scores. You will be able to see this on the print out from your lender.
Don't settle for a loan with a low credit score if you don't have to as you will pay higher interest and most likely PMI.
Hope this was helpful.