Credit Scores - What are the types and why do they vary?

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Joined: 20 Dec 2005
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Location: nevada

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Hi Kwaker, Welcome to the forum. Medical accounts will not directly affect your getting a mortgage. Instead, it will affect your credit score negatively thereby bringing it down. If there is a medical bill that has gone for collection, this will affect your payment history and hence have an adverse influence on your score. Or else, if you have made any late payment on medical bills or still have to pay for some of the bills, your score is likely to go down. Thanks, James.

Darren

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Post subject: credit scores

My Credit score with Trans Union is 672, experdian 634, equifax 623. Would I qualify for a morgage with these scores and would they take an average of these scores. I was looking at buying a home now, should I wait or just re finance when my score improves.

blue

Joined: 21 Oct 2005
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Hi Darren, Welcome to Mortgagefit discussion board. Your scores are reasonably good and would be able to qualify for good rates with these scores. Lenders will make an average of the scores you have to see if you can qualify for a loan. In addition to your score, lenders will also look at your income, job status, and debt to income ratio while considering your loan application. If other things are also good then you can shop with a few lenders to see what rates they are offering. And if the rates offered are good then you can go for the purchase. But you can also wait for some more time and let your score improve further then rates will be the best one can avail. It also depends on the other factors I mentioned above. So you have to calculate and then decide what would be good for you. Do let me know if you have any other questions. Thanks Blue _________________ Lets help each other. Try my blog

miller_st

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Quote:

My Credit score with Trans Union is 672, experdian 634, equifax 623. Would I qualify for a morgage with these scores and would they take an average of these scores. I was looking at buying a home now, should I wait or just re finance when my score improves.

Darren, I would say your scores are what can help you get a good rate. If other points that Blue mentioned are favorable then start looking for the house. But what range you are looking to buy the house in? Need to calculate if with your income you will be able to qualify for a mortgage for that amount.

Miller

Caron

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Hi Darren, It's not that the lenders would take an average of your credit score. They would consider the score provided by each of the credit reporting agencies and the middle score especially. The middle score is the one between the maximum and the minimum as provided by the agencies. In your case, it will be 634. You may get better rates at this score but it is somewhat difficult. I feel you should wait for some more time before your score improves. And, in the meanwhile you may start taking steps to repair your credit on your own. Good luck _________________ Mortgage Shopping made easy with booklet

webmaster

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Post subject: How

Hi, Its a great post.I found it is very interesting and more informative.But i want to know how can i contact the agency to get my report? _________________ high risk loans small Business loan

adonis
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The three agencies use one website/ toll free number ad one mailing address where you can contact and order for a free report annually. To order, you may click www.annualcreditreport.com or call up 1-877-322-8228. _________________ Procrastination is the enemy of your financial sucess

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Hi, Great explanations about Credit score and its importance.Awesome post!I can provide some tips for Raising Your Credit Score.Pay all your debts on time. Keep your debt levels down. The less outstanding debt you have relative to your overall credit limits, the better. Use your credit cards but pay down the balances. Don’t let them mount up. Many credit scores compare the amount of debt you have to your credit limits. The closer you are to your credit limit, the more likely that your credit score will be negatively affected. _________________ custom brochure Designs

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One thing to remember about credit scores is that in most cases it represents that you are good at borrowing money and paying interest. The only real good time to borrow money is when buying a home. If you have a steady job and have paid your bills on time and can save up to put 20% down on a home, in most cases you can get a good interest rate through manual underwriting. Paying cash for cars and other purchases is easy if you want to do it. Start with a 1000 to 2000 dollar car then save the money you would make payments with and move up in car 2 to 3 years. Keep saving the payment like a steady bill. You can do this with all other purchases. Think about it, if you can borrow and pay interest you can save and earn interest.

larry

Joined: 27 Jun 2007
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Hi Guest, Welcome to the forum. Excellent information and excellent suggestion too Are you a lender? Why don't you join this community and help people with your knowledge and experience That will be really great. You can introduce yourself and let us know about yourself at http://www.mortgagefit.com/introduce-yourself.html Hope you will keep on helping people with such informative posts. Best of luck, Larry

payments

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Post subject: IRS and late payments

I have cleared most of my bad credit, resulting in my fico score increasing by 14 pts. The question I have is, "I still have about three charge off I am currently working on and a lien from the IRS. What are my chances of getting approve for a home loan.

Jessica
Jessica

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Post subject: RE: 3 charge-offs and IRS lien

Hi guest, It's good that you could increase the FICO score by some points. But I still feel you should wait for some more time, settle the charged-off debts, pay off the lien and then go for the home loan. By the way, what type of lien is it? any property tax lien or what? In short chances are feeble, not just because of your score but due to the fact that you have been through 3 charge-offs and an IRS lien thereby having negative marks on your credit report. Regards, Jessica _________________ http://jessica.mortgagefit.com/

charlesarmbruster
charles.armbruster

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I have cleared most of my bad credit, resulting in my fico score increasing by 14 pts. The question I have is, "I still have about three charge off I am currently working on and a lien from the IRS. What are my chances of getting approve for a home loan. Well, you are making progress. I would say that a loan officer would need much more information in order to help you decide if you can qualify for a home mortrgage loan. I'd encourage you to investigate with your local bank -- walk in and ask! Take with you some information, such as income figures, W-2 tax forms, rental history (if any), employment history. This is relatively simple. Try to avoid paying money to make application -- it is not necessary. Also, take your credit report with you. LOOK INTO IT!! Good Luck!! If you are not happy with the response you get, try a mortgage broker who has a wider range of products to offer. Still, first-time home buyers may do better at the bank. If income is a real problem, there are non-profit organizations available to assist with down-payment money. Certain lenders, including FHA-insured, may allow the payment of the lien at closing, even out of seller's contribution. Good Luck!! _________________ Chuck Armbruster Phoenix, AZ

jbarto65

Joined: 04 Nov 2007
Posts: 625

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Those are some really good scores and I am sure that you have worked hard to keep them that way. I would say that they are good enough to get a descent loan, and get a descent home for a good price in todays market. Make sure that you shop for a good deal, explore all options and try to get the best rate that is possible for you. Goodluck and good job on your scores, I am hoping mine will be that high some day. I have been working hard trying to get them up and plan to check them one year from now to see if I have any improvement. You set a good example, goodluck, hope you find what you are looking for.