credit score 585 Can you help me? Or is it to low?

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Icon Mini Profile ecooper





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Post Posted: Tue Jul 07, 2009 3:09 pm    Post subject: credit score 585 Can you help me? Or is it to low?
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My credit score is 585 can you help me? Or is it to low?
Icon Mini Profile JKennedySLG
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Post Posted: Tue Jul 07, 2009 3:42 pm    Post subject:
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585 is below the "standard" for FHA (which is 620), but there are a select few lenders who will allow for a 580+ score for financing.

They will require 12-24 months rent checks. No lates on anything within the last 9 months. No BK within the last 3 years. Compensating Factors are key. For example, if you're renting for $1,800 now and your mortgage payment is going to be similar, that will be beneficial.

I would suggest you make attempts to clear up any derogatories that may be drawing your score down and/or wait it out until you have reached the 620 mark. Your facing higher rates of interest when below 620 and in some cases you're not too far off from the 630 mark and your don't even know it. I hope this helps...

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Icon Mini Profile sherinestanly





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Post Posted: Wed Jul 08, 2009 3:23 am    Post subject:
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Hey, 585 is truly low 4 Home mortgage loans, i suggest u wait till u have a good score between 620-680 so that u get better rates n terms and u can also relax if u have good scores as it does not lead 2 any future probs...and there are many lenders who help in increasing the scores before lending loans...
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Post Posted: Wed Jul 08, 2009 9:10 am    Post subject:
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You should improve your credit score to qualify for mortgage.
It is low score as everyone above specified.
Impove your credit score and apply for mortgage.
MiSs.W.

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Post Posted: Tue Jul 28, 2009 1:21 am    Post subject: improving your credit
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try applying for a credit card (an amt you know you can pay off) but DO NOT spend OVER 70% of the max value (so say you get a $100 credit line only spend $70) then pay your monthly pymts on time w/ a little extra until it's paid off (DONT PAY IT ALL AT ONCE YOU WANT TO SHOW YOU CAN MAKE ON TIME PYMTS)...that should help build your credit before appling for a mortgage loan
Icon Mini Profile gmakerley
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Post Posted: Tue Jul 28, 2009 8:35 am    Post subject:
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nice efforts, miss w, but you cited your information incorrectly. in fact, you need to keep your balance at 30% or less in order to most benefit your credit score. clearly, paying on time is essential, but there's also no need to continue to pay interest - you can pay the bill in full when you get it...just continue to use it for a period of months, repaying in full each month. obviously, you'll want to keep the amounts low enough to allow you to pay it off each month.[/u]
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Post Posted: Tue Jul 28, 2009 8:26 pm    Post subject:
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ecooper

Welcome to the forum

You mentined your score is 585, but you did provide more details on why it is low. That is really a important factor before you consider applying for new card or loan.

Some basics of credit report and score:

35% is based on payment history
30% Amount you owed
15% length of history
10% New credit
10% on types of credit

As you can see 35% is payment history, as you are making payment on time now, it will help you to improve the score quickly and the next 30% is how much you owed. As you keep making payment it will reduce the amoutn you owed helping again to improve your score and report.

15% is length of credit history


Considerign all these factors,ask your self or check yoru credit report to find out what is really causing your credit score to be so low and work on those factors

If you share more detaisl, it may be helpful to provide better response
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