Home Buying in Columbus>Question Details

windeethepooh, Renter in Donna, TX

I am trying to find someone willing to help me get a loan my credit score is a 563 does anyone know of any body willing to help me.

Asked by windeethepooh, Donna, TX Mon May 13, 2013

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Good morning windeethepooh,

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

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0 votes Thank Flag Link Fri May 17, 2013
I would take a small loan at a bank by putting up money in a checking account and taking a loan with 100% collateral. wait a couple months and do the same thing again make sure both loans are for 12 to 14 mos long that way you have two new accounts and within 6mos to a year of paying on time you should see your score going up. Make sure all loans are current and you cannot have judgemets and expect the score to get better. No bank will loan money on someone that owes on collection accounts.

Good Luck
0 votes Thank Flag Link Mon May 13, 2013
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