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imtheprez · Sep 16, 2007, 04:24 AM

HELLO! I have a credit score of 531... not bad credit just not that much. I have 2 credit cards with $300 limits on both and I own $50 on each, and I have a car loan that I owe $8,500 on. I want to get approved to buy a home but I can't get 100% financing due to low credit score. I have paid every bill early or on time, I need to build credit quickly as possible... any help?

coram14 · Sep 16, 2007, 05:57 AM

Originally Posted by imtheprez

HELLO! i have a credit score of 531...not bad credit just not that much. I have 2 credit cards with $300 limits on both and i own $50 on each, and i have a car loan that i owe $8,500 on. I want to get approved to buy a home but I can't get 100% financing due to low credit score. I have paid every bill early or on time, I need to build credit quickly as possible.....any help?

Check your credit score. All 3. There may be things you didn't realize. If yo're young and a short work history, this may affect your credit worthiness with a lender. Inquires on your credit report lowers your score unless you inquire. Try Nationpoint as a lender. They were very helpful with me on my first house

Fr_Chuck · Sep 16, 2007, 06:26 AM

There is no "quick" fix on a home loan,

Also with the larger amount of foreclosures and the large number of home lenders that have recently filed bankruptcy you are not going to find as many 100 percent loans as you did before.

Good credit scores just take time.

imtheprez · Sep 16, 2007, 11:19 AM

Originally Posted by coram14

Check your credit score. All 3. There may be things you didn't realize. If yo're young and a short work history, this may affect your credit worthiness with a lender. Inquires on your credit report lowers your score unless you inquire. Try Nationpoint as a lender. They were very helpful with me on my first house

Not get get into your personal info.. but do you remember your credit score? Was it around mine?

KCDave · Sep 16, 2007, 12:02 PM

Originally Posted by imtheprez

HELLO! i have a credit score of 531...not bad credit just not that much. I have 2 credit cards with $300 limits on both and i own $50 on each, and i have a car loan that i owe $8,500 on. I want to get approved to buy a home but I can't get 100% financing due to low credit score. I have paid every bill early or on time, I need to build credit quickly as possible.....any help?

You could try something unique and save up a downpayment for the house. Renting for a few years will cost about half what your house payment would be. Take the remaining amount and save for the downpayment. Get a weekend job and add that toward the downpayment. If you get to 20% you won't have a problem getting the loan and you also will save around $100 a month in PMI fees. It's just a thought :)

Dr D · Sep 16, 2007, 02:40 PM

There is no way that your credit score can be at 531 without derogatory items. Get your reports from all three bureaus, and find out what those bad items are. If they are errors, dispute them; if they are yours, take care of them.

ScottGem · Sep 16, 2007, 03:33 PM

Originally Posted by KCDave

You could try something unique and save up a downpayment for the house. Renting for a few years will cost about half what your house payment would be. Take the remaining amount and save for the downpayment. Get a weekend job and add that toward the downpayment. If you get to 20% you won't have a problem getting the loan and you also will save around $100 a month in PMI fees. It's just a thought :)

While I agree that this is a viable alternative, I wonder whether you have checked out the rental market. In the areas I know of, rentals are generally close to what a house payment would be.

coram14 · Sep 16, 2007, 06:35 PM

Originally Posted by imtheprez

Not get get into your personal info..but do you remember your credit score? was it around mine?

It was low 600... maybe 620

imtheprez · Sep 17, 2007, 03:38 AM

Only thing on my credit that is negative is a credit card from a store that I have paid off in full and closed the account out.. I made the store send me a letter stating that this is true. There is nothing else I can do to take care of that item.

Dr D · Sep 17, 2007, 09:11 AM

That is bizarre. If you have two credit card accounts and a car installment loan, with no lates on any of them; and just the one bad paid account, your score should be substantially higher than 531. When the bureau gave your score, they should have provided the four factors, in order of decreasing importance, that lowered your score. Try to get reports and scores from the two other bureaus, as they will be different. For mortgage purposes, the high and low scores will be thrown out, and the middle score used.

If you want to buy a home, credit-wise your chances will be better on FHA, than Conventional, because a human underwriter can more easily overrule a turndown by the computer, and more readily use alternative credit such as timely rent and utility payments. FHA requires a minimum 3% investment from the borrower, which can come from a gift, or a local Down Payment Assistance program. Contact a competent and ethical Loan Officer to review your situation, and to see what assistance programs may be available in your area. Good luck.

imtheprez · Sep 17, 2007, 11:07 AM

I don't remember which bureau... but one of them didn't even have a score for me one had me at 535 and other at 531 and other at 0 so they took the lowest one.. being the 531

ScottGem · Sep 17, 2007, 11:16 AM

As Dr D said, I find such a low score bizaare if you are giving us the facts.

coram14 · Sep 17, 2007, 02:35 PM

Originally Posted by Fr_Chuck

There is no "quick" fix on a home loan,

Also with the larger amount of foreclosures and the large number of home lenders that have recently filed bankruptcy you are not going to find as many 100 percent loans as you did before.

Good credit scores just take time.

It took me about 10 months to get to the 600's from around 540

imtheprez · Sep 18, 2007, 03:12 AM

A friend of mine is a mortgage lender and he ran my credit through one of his progams called "what if report".. this is a program that is 97% accurate. It uses my credit report and tells him what I need to do with that accounts I have now to get my credit score up.. I have only 8 months before my lease is up and I have to buy a home... I hope this works!

imtheprez · Sep 18, 2007, 02:09 PM

OK he told me that once I pay off the credit cards that my score will go up.. and once the car loan is paid off the score will really go up.. (I figured that) but he also told me to get a credit card that reports to all 3 bearua... well I tired to apply at 2 different places and got turned down... NOW WHAT?

Dr D · Sep 18, 2007, 04:06 PM

Now I am confused. Since you already have two credit cards, you probably do not need more. Most CCs I believe do report to all three bureaus. Have you actually seen your credit reports? The site where you can pull up reports from all three without charge is: https://www.annualcreditreport.com/cra/index.jsp I am pretty sure that you will find something that you did not expect.
Improving Credit Scores and Reports - How to Correct Credit Report Errors
The above site has very comprehensive information on how to improve your credit scores.

imtheprez · Sep 18, 2007, 04:45 PM

Originally Posted by Dr D

Now I am confused. Since you already have two credit cards, you probably do not need more. Most CCs I believe do report to all three bureaus. have you actually seen your credit reports? The site where you can pull up reports from all three without charge is: https://www.annualcreditreport.com/cra/index.jsp I am pretty sure that you will find something that you did not expect.
Improving Credit Scores and Reports - How to Correct Credit Report Errors
The above site has very comprehensive information on how to improve your credit scores.

Yea I have looked at it... im just going on what the lender is telling me to do.. and I looked at my c.c and they are supposed to report to all 3 bureaus but aren't reporting to transunion.. can I call and ask them to report?

Dr D · Sep 18, 2007, 06:27 PM

Are you looking at a credit report that your mortgage friend pulled, which has your scores, and that four factors for each bureau that lowered the scores? Was it TransUnion had had no score for you? Have you pulled your own credit reports from the free site? You can call the CC companies and ask them to report to TU, all they can say is no, or yes. We seem to be going in circles.

imtheprez · Sep 19, 2007, 01:49 AM

He emailed me the report that he looked at... and I also talked to another mortgage lender and he told me same thing.. all I need to do is call the c.c. company and ask them to report. One more thing... my husband has a capital one c.c. that reports to all 3... so I'm going to join on his acct and piggyback on his card... this will help with my transunion correct?

AndyWilliams · Sep 19, 2007, 08:11 AM

Originally Posted by imtheprez

HELLO! i have a credit score of 531...not bad credit just not that much. I have 2 credit cards with $300 limits on both and i own $50 on each, and i have a car loan that i owe $8,500 on. I want to get approved to buy a home but I can't get 100% financing due to low credit score. I have paid every bill early or on time, I need to build credit quickly as possible.....any help?

There is a great education program at BrightScore - Credit Education, Credit Score and Credit Report Analysis that gives you a customized action plan on how to improve your specific credit standing.