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I need to increase my credit score to get approved for an FHA mortgage. I was told that if I opt out from getting credit card offers I could increase my credit score between 15 and 20 points. Is this true?
I need to increase my credit score to get approved for an FHA mortgage. I was told that if I opt out from getting credit card offers I could increase my credit score between 15 and 20 points. Is this true?
never heard of that, but it is definitely a good idea. when you apply for any loan, you should always check your report at annualcreditreport.com. this is the only free site, sanctioned by the gov't where you can check your credit report.
if it so happens that there is something is not right, it will take months to fix. but while you're there, you might as well challenge everything. if the collector does not respond within the 30-45 day (depending on what kind of debt) window, you will have that debt considered not valid (someone else want to elaborate?), but it will still be on your report. you can then write the explanation letter to them (they will ask for this) and then they can adjust your score for this one loan application. it is up to you to then fix your report.
not to mention owning real estate, and making your payments ON TIME, will drastically increase your score.
It's really hard to give you an armchair opinion without seeing the report itself. As I mentioned somewhere else, I found a simple fix (a derogatory account reported 2x by the same bureau, the middle score bureau) and we boosted a score by over 50 points. (It was a late reported the same month the report was pulled). Another borrower, it was agony getting the score up by 10 points.
Did your lender just flat out say no, you need a higher score? Did they offer to assist? Most of us tend to offer suggestions for the higher score. Or, is it possible, the lender was blowing you off, using the score as an excuse? (There are some lazy loan officers out there).
Low scores are typically reflecting someone is having a hard time, AT THAT POINT IN TIME, making ends meet. There is more to just a score in an FHA approval. And that brings 100's of questions to mind.
Was there a reference to a manual underwrite? Typically, that is the reason a score must increase. Do you know if anyone ran you through the automated system. In all fairness, no one can really answer your question accurately without the rest of the picture. If someone has zero credit cards and shuts down all future credit card offers, it may do absolutley nothing. Yet, if you have someone w/ 12 credit card accounts, and someone opts out, it could very well impact them by 20 points.
No one can give you the exact answer you seek. Even with all of the facts, we still couldn't give you the information definitively. We can only say, it's possible.
It's really hard to give you an armchair opinion without seeing the report itself. As I mentioned somewhere else, I found a simple fix (a derogatory account reported 2x by the same bureau, the middle score bureau) and we boosted a score by over 50 points. (It was a late reported the same month the report was pulled). Another borrower, it was agony getting the score up by 10 points.
Did your lender just flat out say no, you need a higher score? Did they offer to assist? Most of us tend to offer suggestions for the higher score. Or, is it possible, the lender was blowing you off, using the score as an excuse? (There are some lazy loan officers out there).
Low scores are typically reflecting someone is having a hard time, AT THAT POINT IN TIME, making ends meet. There is more to just a score in an FHA approval. And that brings 100's of questions to mind.
Was there a reference to a manual underwrite? Typically, that is the reason a score must increase. Do you know if anyone ran you through the automated system. In all fairness, no one can really answer your question accurately without the rest of the picture. If someone has zero credit cards and shuts down all future credit card offers, it may do absolutley nothing. Yet, if you have someone w/ 12 credit card accounts, and someone opts out, it could very well impact them by 20 points.
No one can give you the exact answer you seek. Even with all of the facts, we still couldn't give you the information definitively. We can only say, it's possible.
exactly, i wouldn't suggest posting anything about your credit on here, nor would i want to see it. it is pretty much up to you.
if you can answer a few questions, maybe we can give you a more detailed response as to what is possible.
-was there a judgment against you?
-was there late payments, if so what kind?
-bankruptcy?
there are many possibilities, but just about every one will require a lot of headaches, a month at least, a written letter of some kind, and most likely some other hoop to jump through.
If FHA is not willing to give you a loan, your credit score is low. It sounds like you are not ready to own a home. Focus on paying off your debt and save at least 3-6 months of living expenses in case of emergency. Times are crazy. Learn from what is happening today. Good luck!
If FHA is not willing to give you a loan, your credit score is low. It sounds like you are not ready to own a home. Focus on paying off your debt and save at least 3-6 months of living expenses in case of emergency. Times are crazy. Learn from what is happening today. Good luck!
Normally, I would agree with you sight unseen, but I have seen some really bad reports lately, with serious mistakes.
My husband and I did not have a serious savings account until we were homeowners and had the relief of the tax burden we were paying as renters. Our first tax refund of $6500 started us off to our first serious savings account in the 1980's.
The OP could have some serious credit issues and then again, minor at best and mostly corrections required. I would hate for someone to read here that if their score is 580, they should give up and wait a year. First, if there are corrections, the sooner the corrections are made, the higher the score will go. I had one customer that needed something so simple as a social security number check on a collection account. Guess what, not hers.....all three bureaus, lots' of points on the score.
My point is, get the credit pulled and reviewed by someone that knows what they are doing. It's possible much of it may not be a free ride. But how are you going to know unless you go through the motions? If the OP was told it's only his score holding him back, his score is not a accurately reflecting his credit and requires correction. He would have been given a bigger laundry list of items to be paid.
You may be right. ecaldwe1 credit report may contain information that is incorrect. I am not a fan of FHA loans; they are the original subprime loan. I would try and qualify for a conventional loan and pay off all of my credit card debt before taking on a mortgage. I would also have some reserves in the bank. The economy is bad and no one knows when things are going to get better. Homeownership should be a positive experience. We need to change the perception of owning. It is not a bad thing. In fact, it is a wonderful thing if you act responsibily. People with bad credit usually dont act responsibly. I'm cautious; what can I say!
Last edited by homeowner35; 01-03-2009 at 05:26 PM..
Reason: incorrect word usuage
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