FinanceCreditLoans
ANSWERS: 1
  • That score applies to which credit company? There are three of them you need to check with. If any of those have a lower score then you may not be able to get a loan. Your score of 628 is not good, its maybe 'fair' and the low end of that. A good score falls between 650 to 699 - 700 to 750 is considered great and above 750 gets all of these banks and credit card companies lurking outside your houses ad begging you to take a loan, take their card. http://creditcards.lovetoknow.com/What_is_a_Good_Credit_Score may come in handy and it does explain the score system better. That site also has a small chart that outlines APR/Interest rates: Score Range / APR / Payment 700--+- / 6.3-6.5% / $1,000-1050 620-699 / 6.8-7.6% / $1,075-1165 500-619 / 8.9-9.9% / $1,300-1,450 Trust me these interest rates and the lower payment you make for having a higher credit score does add up - when it comes to a house it can add up a lot. Since you are thinking of going into the market to buy a house you need to talk with your bank - not the teller, there are loan officers in most banks and most of them can help you, offer suggestions, tell you what to expect and point you down the right track of building up better credit score and also on how you can utilize what you got when it comes to loans. Right now the markets are all upset and loans and mortgages may or may not be granted to anyone through X bank - depends on what the economy is doing at the moment. To be perfectly honest your credit score 'worries' me. It tells me that either you do not manage your money to well or you are young and/or haven't established credit. Both of these potential issues can be negative for you if you attempt a purchase of a house not just interest wise, but setting you up for the greater fall to come. Also Now is not a good time to purchase a house. The market is still sinking, that means you may buy a house for $100,000 today, but by 2010 it could be worth only $75,000 or even lower. houses around here were at $350,000 2 years ago, now they are down by 60% selling at or around $180,000. People who bought them 2 years ago still have to pay the huge interest payments and mortgages, if they sell they lose $170,000. We are in a time of financial crises, and its going to be going down a bit more during the next 6 months. housing prices most likely will slump more. I would advise you to: 1. Save up some money - any amount, aim for at least 100 a month. Grow a savings account. 2. Work on increasing your credit rating by paying off your debts and then maintaining a very low debt on your credit cards - making the payments promptly and always paying MORE than just the minimum. 3. Do NOT make a major purchase (furniture, car, appliances are major purchases) until your credit score is around 660-675 - then make a major purchase through a store credit card - like Sears - and make prompt payments, paying 10-20 dollars more than the minimum - keep that debt going as long as possible while paying it off in slightly more than minimum increments - that will be a history of handling large debt. 4. When it comes to buying a house, wait. Keep an eye on the local markets - when the economy gets through its current fit, the price of houses will start going up slightly - then is the time to purchase - you will most likely have bought the house at its lowest price in this century.

Copyright 2023, Wired Ivy, LLC

Answerbag | Terms of Service | Privacy Policy