Credit Score in 30043>Question Details

Robinsone1972, Home Buyer in Atlanta, GA

I'm in credit chaos

Asked by Robinsone1972, Atlanta, GA Sat Apr 20, 2013

I have a dream to buy a home but my credit is in the mid 500, how do I improve my score to buy a home one day?

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Please forgive me for the delay. You can obtain affordable credit counseling at The Impact Group, a HUD-certified Credit Counseling agency. They will meet with you, review your credit and help you prepare an action plan to get you in a position to purchase a home.

Solomon Greene
Georgia Real Estate Brokers Associate, REALTOR®, Certified Affordable Housing Counselor
Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Wed Apr 24, 2013
Good evening Robinsone1972,

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.…

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.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

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0 votes Thank Flag Link Tue Apr 23, 2013
Great answer, Rodney Mason.

I think that you should take the Financial Peace course from Dave Ramsey.

Check the web reference.
0 votes Thank Flag Link Sun Apr 21, 2013
Open a secured visa with capital one and USA Bank. They both report the accounts as unsecured. Also begin to start paying off your accounts. Carefully look at the dates of each. If they are over 7 years old, they are past the SOL (statue of limitations) and are considered obsolete so therefore you can have them deleted. The ones that aren't you will have to begin paying off the debt, as Rodney mentioned negotiate a deletion for a paid off account. If not you can challenge the account after you've paid it off and it will fall off your credit report(s). If you need more help or don't want to do the work yourself, my company provides score improvement services, so that you can qualify for a mortgage. All of our services are satisfaction guaranteed.

Have a great day.

Christina Solorzano,
CEO & SR Credit Repair Specialist
Everlasting Credit Repair
0 votes Thank Flag Link Sat Apr 20, 2013
The very first step is to start paying ALL of your bills on time and not letting anything go to collections. Once you are consistently paying everything on time, you would then need to contact each of your collection account creditors directly to see what your options are. Paying off derogatory debt will help improve your credit score in the long run, but not immediately.

With collection accounts, most of the damage is done when they are initially placed on your credit report. Some collection companies are now reporting you are late each month the debt goes unpaid. This continues to drag on many people’s credit scores each month until the debt is paid in full. Until you do that, your credit score has little chance of improving.

In exchange for paying the collection account in full, you can try to negotiate to have them completely remove the derogatory item once the payment is received. Some collection agencies will do this, while others will not. You will just have to ask each one and see. If they will not remove it, just having it paid and closed will help in the long run.

All liens and judgments will also need to be paid in full. These impact the title position of a mortgage so they must be satisfied.

To build positive credit, you typically need to have 2-3 trade lines reporting for 12-24 months. There should be no late payments or other derogatory items reported in the last 12-24 months. On your Revolving credit accounts, your outstanding balance on your monthly statement should not exceed 30% of the credit limit.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase once you are ready, you can submit your request online at

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Sat Apr 20, 2013
Send me your email and I will put you in touch with a lender that can help you.
0 votes Thank Flag Link Sat Apr 20, 2013
Improve your credit score by paying bills in full, on time. If you have made some poor decisions in the past but are wanting to move beyond them, there are several small, secured credit cards which are made specifically to help individuals in your situation.

Hope that helps!
0 votes Thank Flag Link Sat Apr 20, 2013
The most effective way to improve your credit score is to engage in good credit practices. When you're extended good credit terms, take the loan and pay off every payment on time. Do that for 2-3 years and you'll very likely have a credit score in 700s.
Web Reference:
0 votes Thank Flag Link Sat Apr 20, 2013
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