How long does it take to raise a credit score, and how do I do it?

Tips and Deals Forums Improving Your Credit Score How long does it take to raise a credit score, and how do I do it?

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    • #207379
      Anonymous
      Inactive

      A few months ago my credit score was only around 540. I need to get approved for a house within a few months. Any tips on raising it ASAP? Once I pay off my credit cards do I close them or keep them open? Should I lower my limits so I don’t have as much avaliable credit? Any sercret tips out there? Thanks!!

    • #274673
      Anonymous
      Inactive

      When credit scores are high that means the person has a lot of available credit and that the balances on those accounts are below half of the total. Like say you have out 50,000 in credit available to you but really you’ve only used less than 25,000. Also helps if you’ve never been red tagged, have you ever had late payments? It takes years for that to clear your credit report. Hope that helps.

    • #280084
      Anonymous
      Inactive

      If I had a credit score of 540 i would rent a apartment until I got my score up to at lest 675-700. You will save sooo much if you wait, don’t be in a hurry things really do come to those who wait.

      540 is just too low rigth now you need over 100 points you need time.

      The credit score ranges:
      * 760-850 Excelent
      * 700-759 Very Good
      * 660-699 Good
      * 620-659 Marginal
      * 580-619 Poor
      * 500-579 Very Poor

    • #280882
      Anonymous
      Inactive

      Paying off all your credit cards is a very good start. I would keep one credit card opened and pay it off every month. Just make sure that you don’t pay any of your payments late or go over your limit on your credit cards. That should increase your score. Good luck.

    • #285781
      Anonymous
      Inactive

      There is no easy fix to improving your score that much in a matter of months. There used to be a loophole that made the news so the credit reporting agencies closed it. The only thing you can do is pay everything down. If you have any collection items reporting on your credit get those taken care of. Don’t have a bunch of companies pull your credit. That shows that you are shopping for credit which affects your score and can raise some flags with some creditors. If it is absolutely necessary that you get a house approved in a few months it will definitely be tough especially with lenders tightening their lending guidelines. I recommend you wait a while until your loans are paid off and any collection item(s) has been taken care of. Good luck!

    • #437260
      Anonymous
      Inactive

      Not on a fixed rate. If a lower rate is available, you need to refinance.

    • #437261
      Anonymous
      Inactive

      “Fixed” means the rate does not change, either up or down. What the rate was at the time you took out the mortage is what the rate would stay for the entire 30 years, if you had the mortgage that long.

    • #437262
      Anonymous
      Inactive

      No. But you can go to the same or different lender and refi at a lower rate. Check around and watch closing costs.

    • #437263
      Anonymous
      Inactive

      It depends. It is possible that it could go down but it’s probably not likely to do so. It cannot go up. It would go down if interest rates dropped considerably. FHA is a government loan program.

    • #437264
      Anonymous
      Inactive

      you can do a ‘STREAMLINE REFINANCE’ to lower the rate….they dont ask for income docs or new appraisal.
      closing costs are lower on the streamline refi’s.

      fha loans are assumable…and you can transfer your interest rate to the new owner…or the owner can get a lower rate

    • #437265
      Anonymous
      Inactive

      I’m afraid the info you’ve been given is a bit wrong.

      If a loan is a fixed-rate loan, regardless of whether it’s an FHA loan or from another source, the rate is fixed, meaning it can’t change.

      FHA loans are no different than other loans except they are insured by the Federal Housing Administration and a little bit different fees and process than a loan that is not FHA insured.

      If you get an FHA loan with a fixed rate of 6.5%, for example, the rate on your loan is 6.5% for the life of the loan. It can’t go up and it certainly can’t go down.

      Loans that go up or down are adjustable rate loans, not fixed rate loans. And again, whether a loan is fixed or adjustable has nothing to do with being an FHA loan.

      FHA is a great solution for people without a large downpayment or with less than perfect credit. In fact, there is no minimum credit score with an FHA loan. Several factors go into qualifying and unlike other loans, the credit score can actually be pretty low.

      Hope this answers your question!

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