What Happens To Your Credit When You Break A Car Lease?

what happens to your credit when you break a car lease

What Happens To Your Credit When You Break A Car Lease?

Maybe you’ve hit some hard financial times, or perhaps you’ve just decided you don’t like the car anymore. Either way, you are no longer going to be making payments on your car lease. But have you thought about what happens to your credit when you break a car lease? It is quite likely that you have. So we have some information that can help you understand what happens and how to keep it from destroying your credit.

What happens to your credit when you break a car lease?

Defaulting On A Lease

If you cannot afford to make payments anymore and stop sending your lender money, then they will eventually repossess the vehicle.  In some states, such as Arizona, a lender can repossess your car only 31 days after a missed payment, so you are better off communicating with them if you are having financial difficulties. Failing to pay off your car loan will do major damage to your credit. You can always avoid repossession fees by surrendering the car to lender before it gets repossessed.  This would report to your credit as a “voluntary repossession,” which is somewhat less negative than a “repossession,” but still negative. However, you would still be responsible for the remainder of the lease, the early termination fee, plus whatever fees you have to pay for damages (big and small) and mileage regardless of which option you choose. And if you cannot negotiate a settlement on that debt, your credit will still remain just as damaged.

Lease Transfer Or Buy-Out

If you can find someone else to take over your payments, you can terminate your lease early without taking a hit to your credit. However, there is usually a fee involved for the brokers conducting the transfer, but it’s likely worth it if it helps you out if otherwise your credit would be badly damaged. If you cannot find anyone to take your lease, you always have the option to give the car back and pay off whatever balance is still owed on the lease contract. This can help settle your debt without negatively impacting your credit.

Lease Roll-Over

This option does not come as the most highly recommended, nor is it the most practical option financially, but you can trade in your vehicle and roll the payments over to the new lease. How does this make sense? You’ll still be paying for the old lease in future payments, and you may still have to pay an early termination fee before that. Here’s how it makes sense: if you downgrade to a less expensive and/or more fuel-efficient vehicle, it can actually be a cost-effective move. On top of that, this may not hurt your credit.

Lender Negotiation

If you are in a financial position that leaves you unable to afford your lease, it’s a pretty safe bet that you cannot buy another car and perform the roll-over. So if you’re also unable to find someone to take over your lease, then at this point, your best move is to be honest with your lender and negotiate a credit-friendly agreement. If you talk to your lender, they may let you extend the terms of the lease to stretch out the payments to make them more affordable. This would give you more time to pay off the lease and keep your credit looking good.

Do you have any questions about what happens to your credit when you break a car lease?  Let us know! Go Clean Credit is here to help.


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Whose Credit Score Is Used On A Joint Mortgage?

whose credit score is used on a joint mortgage

Whose Credit Score Is Used On A Joint Mortgage?

You’re happily married and ready to buy your first house, but you and your spouse both have different credit scores. So what does this mean? By now, you’re probably worrying about whose credit score is used on a joint mortgage. Don’t worry, because we have all you need to know about getting one.

Whose Credit Score Is Used On A Joint Mortgage?

All credit scores are used on a joint mortgage (and you can have more than 2 people). Financial and credit information is collected from all parties who wish to be on the mortgage and the loan approval is based on the collective results. The approval comes after a review has been done of each applicant’s credit history, income, and current debt load. Sometimes applying for a joint mortgage is necessary if one applicant has a few minor credit issues but sufficient income while the other has great credit history but their income couldn’t cover the mortgage. How much the applicants’ combined income amounts to will determine how much they can get for a loan.

What if my partner has terrible credit?

Let’s say the person you’re getting the joint mortgage with has awful credit. What do you do?  For starters, don’t panic. This doesn’t mean you won’t get to buy that house you’ve been eyeing. You should first understand how everything works.

How do lenders calculate your mortgage score?

When they say they use the “collective results,” it doesn’t mean they take the average credit score of the applicants.  Instead, they use their “lower mid score.” Each applicant has three scores—one from each major credit bureau—and the lender looks at the middle score for each.

  • For example:  Applicant #1 has three scores of 725, 715 and 699. Applicant #2 has three scores of 688, 652 and 644. The two middle scores are 715 and 652, and the lowest is 652, so that is the score the lender will go with.

How do I keep the bad credit from ruining everything?

Know what’s on your partner’s credit

Check your partner’s credit report for mistakes. Having a mistake on a report can hurt your credit up to 100 points, so it’s a great place to start.

If it’s credit cards that are causing the problem, then get them paid off.  Make sure the balances are under 30% of their high-limit because that plays a large role in your credit score. You can also help their credit by making them an authorized user on an account with good standing.

Leave your partner off the loan

This sounds harsh, but sometimes it has to be done. When your partner has bad credit, having them on the mortgage can often do more bad than good. While combining your incomes can help you get a better rate, sometimes it’s best for the person with the best credit to sign on their own. The good news is, if it’s your spouse you’re leaving out, you can both still be on the deed regardless of who is on the loan.

Find a co-signer

If your partner has problems with their credit, you can always ask a relative who has excellent credit to co-sign can help you get approved. There are different rules regarding co-signers with every lender, as they usually do depending on the type of mortgage you’re applying for.

Usually, the co-signer is a good short-term solution while you’re getting into your new home or while your partner is working to rebuild their credit. And when you’re ready, you can take the co-signer off the loan and add your partner.

Do you have anything to add about whose credit score is used on a joint mortgage? Let us know! We can help with your credit issues at Go Clean Credit.


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

What Happens To Your Mortgage When You Die?

what happens to your mortgage when you die

What Happens To Your Mortgage When You Die?

Owning a home is part of the American Dream. But in today’s world, it’s more along the lines of having a hefty mortgage payment that you’ll probably have until the day you die. And if that is the case, what happens to your mortgage when you die?  There are a few things that could happen, but it really just depends on the actions you take while you’re alive.

What Happens To Your Mortgage When You Die?

If you do pass away with some of your mortgage left to pay off, chances are none of your family members will have to directly pay it off. The only person who will be in line to pay off the remaining balance would be the person who co-signed with you, which may be your surviving spouse. However, if he or she continues to live in the house, it may not prove to be much of a problem. Your spouse may also choose to use your life insurance policy to pay off what remains of the mortgage, granted that you have one that pays out upon your death. Or, they may choose to just sell the house to pay it off in its entirety.
If you’re the sole signer of your mortgage, your lender has the power to decide the fate of your home, which could mean anything. However, you can ensure your home stays in your family by stating in your will that it will go to an heir. Unfortunately, that doesn’t mean they will necessarily have the capability to continue making mortgage payments. This means that, sadly, they would likely have to sell the house anyway to pay off the mortgage.
But don’t worry—there are still certain circumstances that could allow your home to remain in your family. Your mortgage lender may call due your mortgage debt if your estate contains a lot of liquid assets, as he or she will be able to use them to satisfy the balance on the loan. While this may not seem like the greatest option since it will reduce the amount of money your surviving spouse or heirs may keep, it is an option that will ensure the bank doesn’t take possession of your home.
Your home is still liable to be foreclosed upon by your mortgage lender if your estate is too small to satisfy your debt. However, this process can be stopped by the executor of your estate at anytime if a willing heir steps forward and makes payments on your mortgage. Unfortunately, your home will most likely be sold through a sheriff’s auction if that does not occur.

Do you have anything else to add about what happens to your mortgage when you die?  Let us know!


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

What Happens To Your Credit When You File Bankruptcy?

What Happens To Your Credit When You File Bankruptcy

If you are facing a tough decision with your finances—namely, bankruptcy—it’s important to understand the aftermath. What happens to your credit when you file bankruptcy? How do you move forward following a bankruptcy?

What Happens To Your Credit When You File Bankruptcy?

First things first: Don’t panic.

Many people consider bankruptcy when looking to relieve debt stress. However, the damage may not be as bad as you think. You also have options to rebuild your credit.

A Chapter 7 bankruptcy involves the collection as well as the liquidation of non-exempt assets. The non-exempt assets’ proceeds are then distributed to your unsecured creditors. This is generally a faster process than a Chapter 13 bankruptcy—which calls for a 3-year to 5-year repayment plan. There are a few differences when looking at these two types of bankruptcy, including what happens to your credit when you file bankruptcy.

Both Chapter 7 and Chapter 13 cases will be reported under the public record section of your credit report. This same section of your credit report is where court cases involving creditor judgments are listed.

A bankruptcy case will be reported in the public records section for 7-10 years, depending on the bankruptcy case filed. The creditors listed in your bankruptcy case (who are later discharged in the bankruptcy) will still show up on your credit report. These accounts will be labeled “Included in Bankruptcy.”

  • Chapter 13 bankruptcy shows up for 7 years
  • The bankruptcy will be deleted from the public records section 7 years from the filing date of the bankruptcy case
  • Chapter 7 bankruptcy shows up for 10 years
  • The bankruptcy will then undergo deletion from the public records section 10 years from the filing date of the bankruptcy case

For many of those who are suffering from financial troubles, your credit has probably already taken a hit from late payments, judgments, high balances as well as charge-offs. If this resembles your current situation, then your credit score might only be slightly lower, the exact same, or potentially a little bit higher. Bankruptcy can sometimes provide you and your credit report with a fresh start.

As previously noted, your bankruptcy filing will be listed – and this occurs in place of judgments or high balances. Thus, it can help equalize your credit report.

During a Chapter 13 bankruptcy case, you’ll get the chance to boost your credit score with every on-time monthly payment you make while the case is pending. If you can file a Chapter 7 case, you should be able to begin working to rebuild your credit in just a matter of months due to the typically short duration of such bankruptcy cases.

Still wondering what happens to your credit when you file bankruptcy? Take a look at Chapter 7 bankruptcies.

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy will remain on your credit report for up to ten years. Furthermore, because any debts associated with this type of bankruptcy are discharged within just a few months of filing, they should fall off the report a couple of years before the bankruptcy itself. Generally, discharged debt comes off your credit report after seven years.

Essentially, as the items on your report associated with the bankruptcy grow older, they will have less and less of an impact on your credit score. This might also speak to the timeliness of filing for bankruptcy (as opposed to allowing collections accounts to linger and then filing later on).

FURTHER READING ON BANKRUPTCY:

How Long Do Derogatory Items Stay On Your Credit Report?

Bankruptcy

Credit Repair After Bankruptcy

Have you asked yourself, “What happens to your credit when you file bankruptcy?” Go Clean Credit offers effective services to bring your credit score back up. Contact us today!


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Why Is My Credit Score Not Going Up?

Why is my credit score not going up

Why Is My Credit Score Not Going Up?

Watching your credit score sit at a number and never move can be frustrating. But don’t worry: this doesn’t necessarily mean you’re doing something wrong.  If you are one of many people asking the question, “Why is my credit score not going up?” then we have some possible explanations for you.

Why Is My Credit Score Not Going Up?

Your Credit Card Balances Are Too High

It’s well-known that making on-time payments has a huge impact on your credit score, but just having a good record when it comes to your payments won’t be enough. Obviously, it’s quite important, seeing as it can hurt your score by about 100 points depending on your history, but there’s another important factor to consider: debt.

It is key to keep your ever-changing credit balances, like credit cards, as low as you possibly can. It’s all in relation to how you utilize your credit. Revolving credit accounts usually have limits, so the closer you get to those limits, the more you’re utilizing your credit. (For more tips on how to boost your credit limits, read this.) Your credit scores will stay down when you maintain high utilization, which is when your debt is more than 30% of your available credit limit.

You’re Missing Something Important

On-time payments and credit utilization are the most influential factors on your credit score, but there are other things that help determine it, too. It’s also important to keep in mind how often you apply for new credit, the length of your credit history and the mix of accounts in your file.

Your length of credit history is a tough one to acquire. You really have to be patient. You can’t make time go by faster, so really all you can do is be an active credit user for as long as possible. A good tip is to keep your oldest credit account open, because your credit age is an average of all your accounts’ ages. Even if you come up with a really great reason to close an old account, consider holding off on doing so.

As for mix of accounts, you want to show that you can responsibly manage different kinds of credit, so you want to have active installment and revolving credit accounts to show that. It does not actually mean that much for your credit if your just paying your credit cards on time, so it’s important to have an active installment.

It can be fairly tough handling just one credit card account, but if you can manage it well, that can do a lot of good on its own for your credit. The mix of accounts plays only a small role in determining you credit score, so opening a second account just for the sake of raising a good score to a better score might not be the best move – especially if you can’t manage it and end up in debt.

Something Negative from Your Past Is Bringing You Down

Admit it—we’ve all made financial mistakes. Some are just worse than others. So if you are making every single payment on time and keeping your credit utilization low, but still seeing a stagnant credit score, you may want to look at other aspects of your credit history. If you’ve gone through something negative like a bankruptcy, collection or a foreclosure, that information can remain on your credit report for up to 7 years before you might see the effects lessen. During this time, it can help to focus on the things you can control, like making payments on time and keeping your credit utilization low.

If you’re looking for a quick fix on your credit, it can be tough—but we have some ways to boost your score in just 30 days.

 There Are Errors on Your Credit Report

When was the last time you checked your credit reports? It’s a good idea to look over them on a regular basis because there could be something there causing your credit to stay down. If you find an error on your credit report you can dispute it with each of the credit bureaus reporting the wrong information. These errors can be anything as little as a misspelled name or as problematic as a wrongful late-payment notation.

If you find several problems or are overwhelmed by the task of trying to fix your credit, you can enlist the professionals at Go Clean Credit to help out. A legitimate credit repair company will not promise a specific jump in your credit score – that is illegal.

Have you asked yourself, “Why is my credit score not going up?” Do you have anymore questions or tips? Let us know!


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

How Divorce Affects Your Credit Score

how divorce affects your credit score

How Divorce Affects Your Credit Score

Divorces are stressful. With so much to worry about between you and your soon-to-be ex-spouse, the last thing you want causing you problems is your credit score. But can a divorce actually hurt it?  Not directly. However, your divorce can indirectly impact it.

Here’s How Divorce Affects Your Credit Score

Your ex-spouse doesn’t pay your joint bills

If you have any joint credit accounts with your ex-spouse — mortgage, credit cards, etc. — someone has to pay them. The judge might rule that your ex-spouse has to pay on specific accounts after the divorce, but you have to make sure it’s actually happening.

Suppose your ex-spouse isn’t as concerned with their credit as you are. What would be their motivation to pay bills? Especially unsecured bills or secured bills with assets that belong to you? There isn’t any.

The worst part is, if these bills are in your name and they don’t get paid, your credit will suffer. It doesn’t matter who is supposed to pay them, whoever’s name is on the account is going to deal with the credit troubles.

Hopefully, you and your ex-spouse are on good enough terms that you’ll both do your part financially. But if that’s not happening, you need to make payments on any bills your ex-spouse isn’t covering, regardless of who’s supposed to be responsible for them.

You’re unable to pay your bills

If your divorce was messy, you may have spent a pretty penny on an attorney, putting you in a tough spot. Or, if your ex-spouse was the primary provider, you may now have trouble covering the bills on your own. These scenarios can hurt your credit score if they cause late payments or high credit usage.

Payment history is the most important factor in credit scores, and anything less than 100% on-time payments can hurt your credit. You may see your credit score drop if your current financial situation makes it impossible for you to pay your bills on time.

If you’re supplementing your income (or lack thereof) with credit cards, you may be using too much of your credit. High credit utilization, which is essentially any balance-to-limit ratio over 30%, can decrease your credit score and limit your options financially.

Here’s what you can do to free up more cash to pay bills — increase your income or decrease your expenses. Ideally, you should be able to do both.

To earn more and spend less, consider working overtime, taking a second job or freelancing during your free time. Completely cut or limit unnecessary expenses by evaluating your frivolous spending. For example, you could cut cable and subscription services, and limit restaurant and personal care spending.

Your ex-spouse is vengeful and has access to your credit accounts

While some spouses are able to split with minimum drama, there are many divorces that aren’t so amicable. And if your ex-spouse is one of the angry ones who has access to your credit accounts, they could rack up debt in your name just because they can.

This is most common with authorized users because they’re not liable for payment. So if your spouse is an authorized user on one of your credit cards, they can spend as they please without consequences. And being unable to pay off this debt can hurt your credit score.

Keeping this from happening is simple. Remove one another from all individual credit accounts as soon as possible. Even the most sensible people act out when grieving the end of a marriage, so don’t just assume your ex-spouse will handle the divorce graciously.

This is how divorce affects your credit score – now see how you can build your credit after the divorce is final.

Do you have more questions regarding how divorce affects your credit score? Let us know, and enlist the help of Go Clean Credit to improve your credit score.


No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a one size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Credit Score of 535: Impact on Car Loans, Home Loans & Cards

credit score of 535

Is a credit score of 535 good or bad? What does a credit score of 535 mean?

score-chartBrace yourself for some bad news… If you have a credit score of 535, you have what’s considered “poor” credit and are in need of credit repair ASAP. As a general rule, credit scores below 619 receive the worst interest rates on home loans, auto loans and credit. The effects can really take a toll on a person’s life – and it might be worse than you think.

What does having a credit score of 535 mean for home loans, car loans and credit cards? How do you improve a 535 credit score? Is it possible to get a loan with a credit score of 535? We will answer all of those questions and more—so read on.

Credit Score of 535: Car Loans

Buying a car with a credit score of 535 is possible, but you’re most likely going to have an extremely high interest rate. People with bad credit – if approved for a loan – are always offered higher interest rates than someone with a credit score even 80 points higher than their score. What is the interest rate for a credit score of 535 on a car loan?

The average amount borrowed by car buyers is $27,000 – according to Melinda Zabritski, Experian’s senior director of automotive credit. When you factor in the three common types of auto loans available in myFICO’s loan savings calculator – 36-month new auto loan, 48-month new auto loan and a 60-month new auto loan – you’ll get a good idea of how much more an auto loan will cost for someone with a credit score of 535 versus a credit score of 615.

Let’s take a closer look:

Loan Type Credit Score Rate Payment Added Cost
36-month new auto 615 13.625% $918 $0
535 14.765% $933 $539
48-month new auto 615 13.65% $733 $0
535 14.731% $748 $704
60-month new auto 615 13.71% $624 $0
535 14.783% $639 $904

So you’re telling me that an 80-point difference in credit scores results in a difference of $904—for the same car?

Yes, that’s exactly right. Getting a car loan with a 535 credit score is going to cost you a lot more. On a 36-month new auto loan, it’ll cost you $539 more. On a 48-month, $704 more. On a 60-month auto loan, it will cost you $904 more.

In other words, if your score changed to a 615—just an 80-point improvement—you would save quite a bit of money on your loan. It’s worth it to pay a company like Contact Go Clean Credit to restore your credit before you take a test drive.

Credit Score of 535: Credit Cards

What’s the best credit card for a score of 535? Unfortunately, if your credit score is a 535, you will not qualify for an unsecured credit card.

In other words, you will have to make a deposit to open up a credit card.

Any credit score above 600 may qualify for an unsecured card – depending on the type of credit card you’re applying for. But if your credit score starts with a “5” and ends in two numbers (“35”), then you will only qualify for a secured credit card.

What is a secured credit card? It means that you will be required to make a minimum deposit in order to open your credit card. Go Clean Credit continually evaluates credit offerings and currently recommends these Secured Cards for people with a credit score of 535.

We have seen up to a 40-point increase in credit score just by opening one of these cards. What happens to your APR for a credit score of 535? Here’s a chart illustrating the differences between annual fees and interest rates between someone with good credit and a credit score of 535.

Card Type     Score Rate Balance Added Cost
Platinum 720-850 4% $5,000 $0
700-719 6% $5,000 $362
Gold 675-699 8% $5,000 $774
620-674 10% $5,000 $1,250
Standard 535 Credit Score 23% $5,000 $7,856

Credit Score of 535: Home Loans

Let’s say you are a first-time homebuyer with a credit score of 535. Can a credit score of 535 buy a house?

For most mortgages you need to be above a 620 credit score, but there are a few loans out there that go lower for FHA. However, other parameters get harder (life debt to income), so it makes it pretty hard to qualify below 620.

Let’s say that you may qualify for a FHA loan with a credit score of 535. As you’ll see in the charts below, a low FICO score increases the amount of money you will end up spending on a loan throughout the course of its life.

Note: The 30-year fixed jumbo home mortgage APRs are estimated based on the following assumptions. FICO scores between 620 and 850 (500 and 619) assume a Loan Amount of $300,000, 1.0 (0.0) Points, a Single Family – Owner Occupied Property Type and an 80% (60-80%) Loan-To-Value Ratio.

Credit       Score Rate Payment Added Cost
Excellent 720-850 4.31% $1,487 $0
700-719 4.53% $1,526 $14,040
Moderate 675-699 4.71% $1,558 $25,560
620-674 4.93% $1,597 $39,600
Bad 535 Credit Score 5.90% $1,780 $105,480

So, can a credit score of 535 get a mortgage? Maybe. But is it worth it?

Getting a mortgage with a credit score of 535 will add an extra $105,480 over the course of the loan than someone with a 721 credit score. The interest rate for a credit score of 535 will increase the monthly mortgage payment by $104 more than someone with a score 75 points higher, at a credit score of 610.

How To Improve A Credit Score of 535

Just how bad is a credit score of 535? As we’ve seen in the sections above, this score impacts every aspect of your financial life. Mortgages, auto loans and credit card interest rates are all dramatically higher than they would be if you had moderate credit.

If you would like to improve your credit score of 535, there are a few ways you can go about it.

1) Read this blog post on How To Improve Your Credit Score In 30 Days. We list simple tips in this blog post like paying down revolving balances to less than 30% and other tips that will improve your score quickly.

2) Read this blog post on what NOT to do when repairing credit. The last thing you want to do is move backwards in your efforts to improve your credit situation.

3) If you seriously need to improve your credit score in 30 days, you will benefit by enlisting the help of a credit repair company like Go Clean Credit. To learn more about our credit repair programs, please contact us.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.

Credit Score of 585: Home Loans, Auto Loans & Credit Cards

credit score of 585

Is a credit score of 585 good or bad? What does a credit score of 585 mean?

score-chartBrace yourself for some bad news… If you have a credit score of 585, you have what’s considered “poor” credit and are in need of credit repair ASAP. As a general rule, credit scores below 619 receive the worst interest rates on home loans, auto loans and credit. The effects can really take a toll on a person’s life – and it might be worse than you think.

What does having a credit score of 585 mean for home loans, car loans and credit cards? How do you improve a 585 credit score? Is it possible to get a loan with a credit score of 585? We will answer all of those questions and more—so read on.

Credit Score of 585: Car Loans

Buying a car with a credit score of 585 is possible, but you’re most likely going to have an extremely high interest rate. People with bad credit – if approved for a loan – are always offered higher interest rates than someone with a credit score even 80 points higher than their score. What is the interest rate for a credit score of 585 on a car loan?

The average amount borrowed by car buyers is $27,000 – according to Melinda Zabritski, Experian’s senior director of automotive credit. When you factor in the 3 common types of auto loans available in myFICO’s loan savings calculator – 36-month new auto loan, 48-month new auto loan and a 60-month new auto loan – you’ll get a good idea of how much more an auto loan will cost for someone with a credit score of 585 versus a credit score of 665.

Let’s take a closer look:

Loan Type Credit Score Rate Payment Added Cost
36-month new auto 665 6.677% $830 $0
585 14.765% $933 $3,714
48-month new auto 665 6.699% $643 $0
585 14.731% $748 $5,038
60-month new auto 665 6.75% $531 $0
585 14.783% $639 $6,468

So you’re telling me that an 80-point difference in credit scores results in a difference of $6,468—for the same car?

Yes, that’s exactly right. Getting a car loan with a 585 credit score is going to cost you a lot more. On a 36-month new auto loan, it’ll cost you $3,714 more. On a 48-month, $5,038 more. On a 60-month auto loan, it will cost you a whopping $6,468 more.

In other words, if your score changed to a 665—just an 80-point improvement—you would save thousands of dollars on your loan. It’s worth it to pay a company like Contact Go Clean Credit to restore your credit before you take a test drive.

Credit Score of 585: Credit Cards

What’s the best credit card for a score of 585? Unfortunately, if your credit score is a 585, you will not qualify for an unsecured credit card.

In other words, you will have to make a deposit to open up a credit card.

Any credit score above 600 may qualify for an unsecured card – depending on the type of credit card you’re applying for. But if your credit score starts with a “5” and ends in two numbers (“85”), then you will only qualify for a secured credit card.

What is a secured credit card? It means that you will be required to make a minimum deposit in order to open your credit card. Go Clean Credit continually evaluates credit offerings and currently recommends these Secured Cards for people with a credit score of 585.

We have seen up to a 40-point increase in credit score just by opening one of these cards. What happens to your APR for a credit score of 585? Here’s a chart illustrating the differences between annual fees and interest rates between someone with good credit and a credit score of 585.

Card Type     Score Rate Balance Added Cost
Platinum 720-850 4% $5,000 $0
700-719 6% $5,000 $362
Gold 675-699 8% $5,000 $774
620-674 10% $5,000 $1,250
Standard 585 Credit Score 16% $5,000 $3,240

Credit Score of 585: Home Loans

Let’s say you are a first-time homebuyer with a credit score of 585. Can a credit score of 585 buy a house?

For most mortgages you need to be above a 620 credit score, but there are a few loans out there that go down to 585 for FHA. However, other parameters get harder (life debt to income), so it makes it pretty hard to qualify below 620.

Let’s say that you may qualify for a FHA loan with a credit score of 585. As you’ll see in the charts below, a low FICO score increases the amount of money you will end up spending on a loan throughout the course of its life.

Note: The 30-year fixed jumbo home mortgage APRs are estimated based on the following assumptions. FICO scores between 620 and 850 (500 and 619) assume a Loan Amount of $300,000, 1.0 (0.0) Points, a Single Family – Owner Occupied Property Type and an 80% (60-80%) Loan-To-Value Ratio.

Credit       Score Rate Payment Added Cost
Excellent 720-850 4.31% $1,487 $0
700-719 4.53% $1,526 $14,040
Moderate 675-699 4.71% $1,558 $25,560
620-674 4.93% $1,597 $39,600
Bad 585 Credit Score 5.36% $1,676 $68,040

So, can a credit score of 585 get a mortgage? Maybe. But is it worth it?

Getting a mortgage with a credit score of 585 will add an extra $68,040 over the course of the loan than someone with a 721 credit score. The interest rate for a credit score of 585 will increase the monthly mortgage payment by $79 more than someone with a score 75 points higher, at a credit score of 660.

How To Improve A Credit Score of 585

Just how bad is a credit score of 585? As we’ve seen in the sections above, this score impacts every aspect of your financial life. Mortgages, auto loans and credit card interest rates are all dramatically higher than they would be if you had moderate credit.

If you would like to improve your credit score of 585, there are a few ways you can go about it.

1) Read this blog post on How To Improve Your Credit Score In 30 Days. We list simple tips in this blog post like paying down revolving balances to less than 30% and other tips that will improve your score quickly.

2) Read this blog post on what NOT to do when repairing credit. The last thing you want to do is move backwards in your efforts to improve your credit situation.

3) If you seriously need to improve your credit score in 30 days, you will benefit by enlisting the help of a credit repair company like Go Clean Credit. To learn more about our credit repair programs, please contact us.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.