Posts Tagged ‘fico’
Credit Score Simulator
July 31st, 2011
Question: About a home loan with a Credit Score of 560-630?
So I have a Credit Score of 554 right now. I have recently paid of a collector,(the only one I owe) and it should post to the credit bur. by the 15th. I used a credit simulator and based on it, my Credit Score should raise to above 600. Does anyone know a place that will give you a home loan with a Credit Score Of 600 or even 554 in butler county ohio? i have 4500 down payment. and am looking for a home in the 80000 to 110000 dollor range.
Answer: How old was this debt? If it was pretty old, paying it off won't really impact your score much at all. It certainly will not impact it by 50 points. You have to re establish credit and pay on time for a good year to 18 months to get your score to rebound.
You need at least a score of 620 to go FHA. Now, there are some people who have been financed with 580, and you might find someone to do that, but, don't count on it. Maybe go see a mortgage broker. They have access to many types of loan products and one may just fit you.
Credit Score Simulator
Credit Score Estimator
June 19th, 2011
Question: Is this the fastest and best way possible to establish credit?
(I have 1 year of making my auto loan payments on time.)
1) I plan to take out a $500 secured personal loan from my bank for 6 months.
2) Then go to a different bank with the $500 and take out another secured personal loan from that bank for 6 months.
3) Repeat this once more at a third bank.
4) Establish a $300 security deposit account at my original bank to qualify for a secured credit card.
5) Repeat the process of getting a secured credit card at the next bank.
6) Repeat this once more at the third bank.
7) Obtain 2 more credit cards.
Pay back $500 secured personal loans from my banks in 6 months making all payments on time.
9) Use all 5 credit cards but never charge more than a maximum balance of 9% of the total credit card limit.
10) Pay off the statements as soon as they come and make all payments on time.
According to this FICO Score estimator my resulting FICO Score would be 740-790 in 1 year.
http://www.bankrate.com/brm/fico/calc.asp
Answer: sounds like a good plan. Avoid carrying to many balances and close down the secured cards when you have the unsecured cards to avoid annual fees and all the other junk they penalize you with.
Credit Score Estimator
Credit Score Articles
May 31st, 2011
Question: How would you change Credit Scoring methods if it were up to you?
Some of the information here kind of miffed me.
http://finance.yahoo.com/banking-budgeting/article/107154/7-ways-to-be-a-dolt-about-credit?mod=bb-creditcards
What do you think?
Answer: That was a biased report which had an axe to grind and only concentrated on the scoring methods which did not seem logical while remaining silent on those methods which did make sense. Should there be some adjustments? Yes. But overhaul the system? Probably not. For all the slamming at the banks, I find it interesting here on Yahoo Answers! how many people loaned money to friends or family who could not get a loan and are asking how to get money back from the deadbeat people they loaned it to. Obviously, the banks knew a hell of a lot more on how to judge a person's creditworthiness than these amateur bankers. Adjust some of the methods, but don't trash it. And most importantly, pay your bills on time, don't carry a balance on your credit cards and don't borrow more than you can afford and your credit rating wil be just fine.
Why Your FICO Credit Scores Are So Important
Posted in Credit Score | 
Tags: credit, Credit Score, credit score articles, fico, finance, money, tips | 
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