- This topic has 10 replies, 6 voices, and was last updated 8 years, 7 months ago by Anonymous.
- May 6, 2011 at 7:28 am #207379AnonymousInactive
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!!
- May 13, 2011 at 2:03 am #274673AnonymousInactive
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.
- May 18, 2011 at 12:26 am #280084AnonymousInactive
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
- May 18, 2011 at 12:40 pm #280882AnonymousInactive
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.
- June 2, 2011 at 2:10 am #285781AnonymousInactive
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!
- June 10, 2011 at 4:22 am #437260AnonymousInactive
Not on a fixed rate. If a lower rate is available, you need to refinance.
- June 10, 2011 at 4:22 am #437261AnonymousInactive
“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.
- June 10, 2011 at 4:22 am #437262AnonymousInactive
No. But you can go to the same or different lender and refi at a lower rate. Check around and watch closing costs.
- June 10, 2011 at 4:22 am #437263AnonymousInactive
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.
- June 10, 2011 at 4:22 am #437264AnonymousInactive
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
- June 10, 2011 at 4:22 am #437265AnonymousInactive
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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