Credit Score of 598: How Your Life Is Impacted Through Car, Home Loans and Credit Cards

credit score of 598

Having a credit score of 598 means you have quite a bit of work to do. You’re classified in the lowest category and are likely finding it difficult to get approved at reasonable interest rates. Sometimes people with this score have a difficult time getting approved at all.

We know this process is a struggle, and we’re here to help. In today’s article, we’ll walk you through a variety of ways your life is impacted by a credit score of 598.

1. Home Loans

Those with a low score are going to pay high-interest rates. Home loans are one of the best examples of how this negatively impacts your financial life.

Let’s say you buy a cheaper home because you can’t afford anything more yet. Unfortunately, you’re also struggling with a credit score of 598. By the time you pay off the loan, your payable interest may add up to more than more than half the original payment.

For the first time home buyer with this score, you will definitely be fighting an uphill battle. In fact, most applications will get automatically declined because you don’t meet the typical 620 threshold.

Increasing your score is going to be your best bet to get a decent home loan. It may take a few years to correct it and it may be frustrating, but bringing your credit score up by even 100 points will put you in an entirely different interest rate category.

2. Auto Loans

A car loan will be easier to get approved, but you’re still going to face plenty of high-interest rate challenges. Let’s say you want a $27,000, 60-month loan. If you have a credit score of 598, you’ll find an average APR of up to 16% in interest.

Here, again, it’s probably best to wait until you’ve built a more trustworthy credit report. After all, there’s no reason to pay enormous interest fees if you’re able to wait on the car.

If it’s something you need right now, however, getting approved is possible. Plenty of financing companies and used car dealerships will work with you. Just know going into it that the loan approval will come with a hefty interest rate too.

 

3. Credit Cards

Credit cards are the easiest to find on the list. You’ll still have suboptimal choices and high-interest rates. In fact, you may not even get approved for an unsecured card. In which case, you’ll need a secure card and be ready for an upfront cash investment.

If all you can get is a secured credit card, get one. Then practice using credit responsibly, and you’ll find your score increasing over time.

For those who used to have good credit, but now struggle with a poor score, consider enlisting the help of a credit repair agency. These tips are great for establishing credit, but there’s often more to be done for those who lowered their scores.

Contact Go Clean Credit to learn more about how you can clean up your score »

How Many Points Does Your Credit Score Go Down When You Check It?

how many points does your credit score go down when you check it

Are you concerned about maintaining a healthy financial life? Everybody knows the importance of a high credit score. It’s like the ultimate game of adulthood. And it leaves you asking questions like, “How many points does your credit score go down when you check it?”

This is a smart strategy. After all, so many small actions trigger a score fluctuation. The last thing you want is to get declined for an important loan because of seemingly inconsequential errors. Cars, credit cards, home loans, and even the department store down the road, will check your credit when you apply. And each of these actions affects your scores.

In today’s post, we’re going to review some of the aspects of credit checks and uncover how many points does your credit score go down when you check it.

But first, we need to know about hard and soft inquiries. Let’s dive in…

The Difference Between Hard and Soft Inquiries

Soft inquiries don’t matter. You can forget they even exist if you want. They don’t hurt your credit card score at all.

Although these inquiries probably show up on your credit report, the lenders can’t see them. Soft inquiries don’t have anything to do with your credit card score. So, if you recently experienced a sudden credit card score drop, you can’t blame the soft inquiries.

Hard inquiries are the real punisher. They can really harm your credit card score if you aren’t careful. But let’s not get too panicked — yet.

Points You’ll Go Down for a Hard Inquiry

Yes, hard inquiries can negatively impact your credit card score. BUT — you shouldn’t see it go down more than five points. The real danger comes when you go on an application spree.

So, how many points does your credit score go down when you check it? Each application will cost you five points off your credit score. The solution? Don’t aimlessly apply for lines of credit.

But what about if you aren’t applying for loans… What if you just want to check your own credit score? Well, good news…

Checking Your OWN Credit Score is a Soft Inquiry

Most applications for a line of credit hit on your report as a hard inquiry. Yes, you read that right! Although this might not always be the case, it’s the typical experience.

Luckily, keeping track of your credit score won’t cost you a thing!

Checking your OWN credit score is a soft inquiry. That means it won’t negatively affect your score at all — which is great news! After all, the only way to spot a need for credit repair or growth is by knowing your report.

HELP! I Went on an Application Spree!!!

Earlier in this article, we mentioned an application spree. This is where an (often unknowing) consumer applies for SEVERAL lines of credit over the course of a month or so.

The result? An AWFUL surprise next time they see their credit report.

Don’t panic — there’s hope. If you’re experiencing the consequences of too many hard inquiries, we’re here to help. Contact us today so we can dive into your specific situation and begin planning a way to help you escape this frustration.

Credit Repair Software Reviews: Top 5 Software Solutions to Fix Your Credit

credit repair software reviews

A credit repair software works to improve your credit score. However, it’s hard to narrow down your options because many companies offer these services. For today’s article, we dug through credit repair software reviews to bring you these top five solutions you can trust.

This technology monitors and fixes errors on your report. As a result, your credit score increase, which makes it easier for you to access loans and mortgages. A credit repair software is easy to use, cheap, efficient, and it allows you to monitor your credit report at the comfort of your home.

Many scams and useless software exists. It’s important to find a reputable company. Or, when in doubt, choose a credit repair agency instead to take care of the heavy lifting for you.

Now, onto the top five picks for credit repair software in 2018…

1. Turbo Credit: Consumer Edition

It removes negative items and false information appearing on your credit report, fights identity theft, and has a TurboStop to legally stops calls from creditors.

“I wanted one that provides information on exactly what one needs to do to lift FICO scores, a breakdown of what banks really look at, and an easy way to dispute and remove errors off a credit report. This software had all these answers and more…” (Source)

Plus, there’s a 30-day money-back guarantee.

Learn more about Turbo Credit: Consumer Edition »

2. 700 Credit Repairs

They offer two primary services: digital credit disputer (software only), and digital score enhancer (software, online workbook, score analyzer and many more).

Where this software really stands apart is in its automated technology.

“Just want to give a huge THANK YOU to 700 Credit Repair!!!!! They repaired our credit to where we were able to get approved for our dream HOME! Thank you so much!!..” (Source)

Learn more about 700 Credit Repairs »

3. TurnScor

Their software works to improve bad credit scores, while their resources focus on training customers in gaining a deeper knowledge of finances and credit management.

“..I didn’t qualify to purchase because of my credit score. I signed up, used the software, and now I qualify to buy a Harley Davidson and it only took 6 months!”…” (Source)

Learn more about TurnScor »

4. Credit Aid

It repairs and improves credit score, removes negative items on your credit report, and even disputes bankruptcies. There’s also a compelling 100% money-back guarantee if your credit score doesn’t improve.

“I LOVE this Software! Prior to using it, I spent quite a bit of money on an expensive ‘credit repair company’ that did NOTHING but take my money! Credit-Aid Software has made it very easy for me to repair my own credit…” (Source)

Learn more about Credit Aid »

5. Credit Detailer

This is another provider focused on providing a solid software AND ongoing training to help their customers get better at finances. It’s easy to use and very affordable compared to other software. Plus, you can buy both Spanish and English versions.

“I called for help and Ken was just terrific! I started off with the trial version and went for the professional version to start my business and have been working smoothly ever since..”- Trish

Learn more about Credit Detailer »

How Many Points Does a Credit Score Go Up When a Collection is Removed?

how many points does credit score go up when a collection is removed

How many points does a credit score go up when a collection is removed? We know that even small oversights can cause huge damage to your report. So, it’s understandable that you’d be concerned.

And, without trying to be too ominous, you should be concerned.

High credit scores provide access to bank loans, higher mortgages, credit cards, and better interest rate. Some employer even run credit checks to vet potential employees.

As you can imagine, it’s important to know your credit score. In a survey from LendEDU, 25% of millennials don’t even know what a credit score is — 5% of them even believe it’s you’re waiting list spot for a credit card.

So, it’s safe to say that we’re getting into a bit of technical territory as we jump into collections. Let’s take a minute to review the basics.

What is a Collection Account?

When you don’t pay your debts, the company sends it to a collection agency. This can apply to credit cards, but also with medical bills or department store loans. The original company chooses to write off the debt as a loss, then sell it to the collection agency.

Lenders sometimes have unique policies, but as a general rule, accounts enter collections after 180-days of non-payment. At this point, the agency who purchased your debt from the lender will report the “collection” status of your account to the credit bureau.

How Does a Collection Account Affect My Credit?

Once an account enters collections, it will harm your credit score AND credit history. If at all possible, avoid letting an account ever enter this status because of the harsh consequences.

First, the instance stays on your credit report for 7 years from your first delinquency. That means creditors will see you as risky, and it will be difficult to increase your credit score during this time. It’s also going to significantly drop your score. If you have a score of 700, for example, expect a drop of around 100 points.

Should I Pay Off My Collection Debt?

If possible, negotiate a way to get the collection DELETED from your report. Sometimes agencies will do this if you agree to pay back the debt. Be careful when going this route, and seek out a bit of professional advice to avoid making matters worse.

Here are the basic steps for paying off a collection debt…

  1. Send a written request for settling the debt in exchange for deleting it from the report.
  2. Wait for a written response from the collector before taking any action.

You’re going to wait a while between step one and two, which will give you plenty of time to dive into the gritty details of what next. Know that the more of your debt you’re willing to pay, the greater chance you have of them removing it from your report.

How Many Points Does a Credit Score Go Up When a Collection is Removed?

Now that you have a solid understanding of collection accounts, the answer to how many points does credit score go up when a collection is removed becomes quite simple. After all, if the collection knocked your 710 score down by 100 points, you can expect to see many of those points return it’s been removed from your report.

It’s nearly impossible to give you a specific number because every report is unique. Instead, let’s move from this blog to an email or phone call and discuss your situation more…

You can reach out via email, or give us a call » 1-866-991-4885

If you’re struggling with debt and facing the credit consequences, consider getting professional help. Our team can guide you through the process of cleaning up your credit.