Home Buying in 43326>Question Details

Edna Roby, Home Buyer in Kenton, OH

if your credit score is a little over 500,how bad a chance do you have getting a loan?

Asked by Edna Roby, Kenton, OH Fri Sep 16, 2011

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Edna,
A 500 FICO score is an indication that you have credit problems. Go to your local non profit housing group. They have credit counselors. The credit counselor will go over your credit report with you and tell you what problems you have. They will also explain what you need to do to correct your credit problems.
0 votes Thank Flag Link Sun Sep 18, 2011
Start by getting a free copy of your credit report from the Government Sponsored http://www.AnnualCreditReport.com. This site will go through extensive measures to verify your identity. Once you have that report on screen you can individually click on accounts and dispute them directly with the credit bureau (If they are paid, not yours, wrongly reported, etc).

Most lenders have a minimum credit score requirement of 620 right now. So you'd need to do some work to get your score up to that minimum required 620.

If you do not have any open, current, credit accounts that is a good start. Feel free to call or email for more details, there are some pretty detailed steps you can take to increase your score that could potentially only take you 60-90 days.

Best of luck to you!
0 votes Thank Flag Link Sun Sep 18, 2011
Edna,
If your score is that low, I'd encourage you to put the effort into resolving the issues that caused it to get so low. Start with a budget, pay everyone on time. Next, get a copy of your credit report and dispute any errors in writing. Finally, pay down any balances to 1/3 or below of their upper limits. This will improve your scores the fastest.
As Sally indicated, the chances of getting an approval are low, and if you did get one, your terms would not be very favorable.
0 votes Thank Flag Link Fri Sep 16, 2011
Pretty bad chance. You should talk to a lender or mortgage broker who can review all of your financial information. (Note that qualifying for a mortgage is not just about your credit score). They will look at your debt-to-income ratio, your savings, your income, your employment history, and yes, your credit score. They may be able to point out a few problem areas that you need to work on. Good luck!
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Fri Sep 16, 2011
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