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Credit Score in 56465 : Real Estate Advice

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Thu Oct 11, 2012
answered:
Good morning Jen.art1,

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. www.consumer-action.org


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.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm


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
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Mon Oct 8, 2012
Susan Hofflander answered:
Definitely contact a lender who can give you definitive answers on how to get your credit score where you want it to be.

Short of that, just common sense things that will secure a good score would be:
1. Pay your bills on time, never late
2. Whittle down the amounts you owe on credit accounts
3. Do not incur any additional debt until you've achieved your goal
4. If you don't have ANY credit, obtain some sort of credit account and pay it off on time
5. Remain current on any student loans, etc.

Good luck!
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