I have very challenging credit. My score is the the low 500, not sure who i can trust or where to go for guidance to owning a home.

Asked by Tonya Parker, Detroit, MI Sun Mar 30, 2014

my email address is t.m.parker@hotmail.com

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5
Fred Herman, Agent, Staten Island, NY
Sun Mar 30, 2014
low 500 score -- "...very challenging..." well I think that's an over generous description.

You need to:
ensure you pay all your bill on time
get a copy of your credit report, review it carefully. correct/dispute any errors.
get credit card balances to less than half of your max card limit. do it for all your cards.

good luck
1 vote
Anna M Brocco, Agent, Williston Park, NY
Sun Mar 30, 2014
Consider repairing your "very challenging credit" before shopping for properties. Most lenders prefer a 640 credit score; there may be some willing to work with less, but the better the score the better the rate. For helpful information see links for possible helpful information...
http://www.myfico.com/crediteducation/improveyourscore.aspx
http://www.experian.com/credit-education/improve-credit-score.html
https://www.transunion.com/personal-credit/credit-issues-bad…
https://help.equifax.com/app/answers/detail/a_id/131
1 vote
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Mon Mar 31, 2014
Good morning Tonya,

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. http://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.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.

Trevor Curran
NMLS #40140

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0 votes
E. Sledge, Agent, Atlanta, GA
Sun Mar 30, 2014
Ms Tonya
Having a copy of your credit report was
A great start, you'll gain confidence as you follow along those entries on your credit report. It does not take long, just
doing
I'd recommend a knowledgeable mortgage professional Lynel Adams
with Silverton Mortgage 770 3186740
My name is Edna Sledge with Bob Wood Realty of Atlanta
mobile: 7709061232
email: integrity141@aol.com
0 votes
Jimmy Payne, Agent, Alpharetta, GA
Sun Mar 30, 2014
There are several lenders now that are writing loans with credit scores as low as 550 scores in Georgia but in order to know for sure, you need to speak to a lender to find out what the credit issues are and what needs to be worked on. there is no easy way to "fix" your credit, it takes determination and time to correct past issues. Good luck and hopefully you can get a home soon.
0 votes
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