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How to Get a Mortgage Even With Poor or Bad Credit

How to Get a Mortgage Even With Poor or Bad Credit

By | credit score repair, home loan for bad debt | No Comments

Ever wondered that how a bad score on credit report can become a barrier in applying for a loan or what does bad debt home loan actually mean. Well, when it comes to home loan, the credit score plays a vital role in maintaining a goodwill of the applicant, as it also help in assessing the creditworthiness of a borrower that whether the borrower would be able to payback the lended amount on time or not.

There are categories in which the credit score is divided into, with respect to the ease of getting a mortgage. The score varies from the least of 350 to the highest of 850. If the credit score falls in between 350 – 620, the eligibility for loan becomes the least. If the credit score varies from  620 – 700, although lending could be risky, however the chances of getting a loan increases. If the credit score is more than 700, the lender would lend the amount to the borrower, as there will a certainty that the credit amount will be paid and that too on time .

If your credit score is below 700, do not get disheartened, there are ways to improve your credit score and avail the benefits of low interest rate loan. One has to look for the best strategies that will help in getting home loan for bad debt by improving the credit score, few of the strategies have been listed below:

  1. Repair the bad credit history: Credit score is not stagnant, it fluctuates with every payment that is paid towards the credit taken prior. It is easy to improve the credit score by paying the credit card outstanding and balancing the delinquent bank account in good standing.
  2. Avoid late payments: There are many who pay all the installments, yet they have low credit score, which happens as a result of delay in the payments. It has been observed that there are many who have good payment history but bad payment habits, hence affecting the credit score by lowering it. To avoid such scenario, one should commence paying the credit amount on time.
  3. Less Credit Utilization: For maintaining the credit score, it is advisable to lessen the credit card usage. The less the usage, the more could be the credit score. Experts say that if the credit card usage is less than 30 percent, it demonstrates the responsive credit usage which aids in building credit score as well as trustworthiness.
  4. Fix bad credit report issues: Never neglect the credit report. It can not be ignored that many a times the credit report may address some unnecessary issues which have been in the report by mistake. There are many agencies that work towards fixing the issues in the credit report, hence improving the credit score. One should keep a check on the credit report and the reason for falling of the credit score.
  5. Large down payment: Both bad credit score and no money for down payment will definitely lead to least chances to get the loan. However, if bad credit score is combined with a huge amount of down payment, this may make one eligible for a debt.

Affordable mortgage does not only mean a good credit score, bad debt home loan is also feasible by following all or at least three above mentioned points. Once you have decided to purchase a home, start putting efforts in maintaining the credit score or start searching for a suitable lender who could even give home loan for bad debt.

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700 Credit Club Present 7 Steps To A Better Credit

By | Credit Score, credit score repair, Improve credit score | No Comments

Following these 7 steps will increase your score quickly.

1. Order fresh new copies of your credit reports from all 3 bureaus: Equifax, Experian and TransUnion. *We will assist you with this step.

Credit reports are constantly changing. Therefore it is important to up-to-date copies. A good rule of thumb to know is: If someone else runs your score or reports, this will hurt your score. However, if you order your own credit reports (which we will help you with) your score will not be affected. You also may want to sign up for credit monitoring to see your reports and score and track changes as they happen.

2. Correct all inaccuracies on your Credit Reports. *We will assist you with this step.
Go through your credit reports very carefully. Especially look for; Late payments, charge-offs, collections or other negative items that aren’t yours, Accounts listed as “settled,” “paid derogatory,” “paid charge-off” or anything other than “current” or “paid as agreed” if you paid on time and in full, Accounts that are still listed as unpaid that were included in a bankruptcy, Negative items older than seven years (10 in the case of bankruptcy) that should have automatically fallen off your report (you must be careful with this last one, because sometimes scores actually go down when bad items fall off your report. It’s a quirk in the FICO credit-scoring software, and the potential effect of eliminating old negative items is difficult to predict in advance). Also make sure you don’t have duplicate collection notices listed. For example; if you have an account that has gone to collections, the original creditor may list the debt, as well as the collection agency. Any duplicates must be removed! Make sure that your proper credit lines are posted on your Credit Reports. Often, in an effort to make you less desirable to their competitors, some creditors will not post your proper credit line. Showing less available credit can negatively impact your credit score. If you see this happening on your credit report, you have a right to complain and bring this to their attention. If you have bankruptcies that should be showing a zero balance…make sure they show a zero balance! Very often the creditor will not report a “bankruptcy charge-off” as a zero balance until it’s been disputed.

3. If you have any negative marks on your credit report, negotiate with the creditor or lender to remove it. *We will assist you with this step.
If you are a long time customer and it’s something simple like a one-time late payment, a creditor will often wipe it away to keep you as a loyal customer. Sometimes they will do this if you call and ask. However, if you have a serious negative mark (such as a long overdue bill that has gone to collections), always negotiate a payment in exchange for removal of the negative item. Always make sure you have this agreement with them in writing. Do not pay off a bill that has gone to collections unless the creditor agrees in writing that they will remove the derogatory item from your credit report. This is important; when speaking with the creditor or collection agency about a debt that has gone to collections, do not admit that the debt is yours. Admission of debt can restart the statute of limitations, and may enable the creditor to sue you. You are also less likely to be able to negotiate a letter of deletion if you admit that this debt is yours. Simply say “I’m calling about account number ________” instead of “I’m calling about my past due debt.” Again, as your credit specialist, we will help you with this step.

4. Pay all credit cards and any revolving credit down to below 30% of the available credit line.
This step alone can make a huge impact on your score. The credit scoring system wants to make sure you aren’t overextended, but at the same time, they want to see that you do indeed use your credit. 30% of the available credit line seems to be the magic “balance vs. credit line” ratio to have. For example; if you have a Credit Card with a $10,000 credit line, make sure that never more than $3000 (even if you pay your account off in full each month). If your balances are higher than 30% of the available credit line, pay them down. Here is another thing you can try; ask your long time creditors if they will raise your Credit Line without checking your FICO score or your Credit Report. Tell them that you’re shopping for a house and you can’t afford to have any hits on your credit report. Many will not but some will.

5. Do not close your old credit card accounts.
Old established accounts show your history, and tell about your stability and paying habits. If you have old credit card accounts that you want to stop using, just cut up the cards or keep them in a drawer, but keep the accounts open.

6. Avoid applying for new credit.
Do not apply for any new credit! Each time you apply for new credit, your credit report gets checked. New credit cards will not help your credit score and a credit account less than one year old may hurt your credit score. Use your cards and credit as little as possible until the next credit scoring.

7. Have at least three revolving credit lines and one active (or paid) installment loan listed on your Credit Report.
The scoring system wants to see that you maintain a variety of credit accounts. It also wants to see that you have 3 revolving credit lines. If you do not have three active credit cards, you might want to open some (but keep in mind that if you do, you will need to wait some time before rescoring). If you have poor credit and are not approved for a typical credit card, you might want to set up a “secured credit card” account. This means that you will have to make a deposit that is equal or more than your limit, which guarantees the bank that you will repay the loan. It’s an excellent way to establish credit. Examples of an installment loan would be a car loan, or it could be for furniture or a major appliance. In addition to the above, having a mortgage listed will bring your score even higher.

ALWAYS REMEMBER 700 CREDIT CLUB IS HERE TO HELP, OUR NO OBLIGATION FREE CREDIT CONSULTATION / ANALYSIS IS ONE PHONE CALL AWAY

PHONE: 844-282-7334

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