Credit Score of 569: Home Loans, Auto Loans & More

credit score of 569

A credit score of 569 indicates that you’ve got some work ahead. Nothing’s impossible, but it’s also not easy. At this level, the best thing you can do is focus on raising that number.

If you’re going to apply for loans, make sure the monthly payments are reasonable. Check the interest rate too, as those can become astronomical at your score. Pay your bills on time and avoid getting in over your head with credit lines.

With that pattern, you’ll be able to raise your score by 100 points or more. However, you’ve got to start somewhere. By the end of this article, you’ll know exactly where.

Credit Score of 569: Credit Cards

Most credit card companies won’t take the risk on you with a credit score of 569. It’s unfortunate, but you must stay realistic about this.

That’s why you start with a secured credit card.

Once you start making steady payments, it establishes a good record. Over time, you build a reputation and become trustworthy in the eyes of creditors. Then you can graduate to a “real” credit card.

Don’t go crazy, though! Always balance your credit to debt ratio reasonably. If you don’t have the money to pay for it straight out, don’t put it on your card.

If not, you’ll be back at square one in no time!

Credit Score of 569: Auto Loans

Auto loans are a little easier. Just about anyone can qualify if you go to the right place. Unfortunately, it’s hard to find a reputable or reasonable creditor. Be careful because you may find yourself falling prey to a bad financial situation.

Low/no credit auto loans will lock you into interest rates as high as the principle. If you are desperate for a car, it really does put you into a bind. However, just a few months of credit building can put you in a better spot to qualify from a legitimate financer.

Try to shop around, especially if you’re desperate for a car and must get an auto loan with a credit score of 569. Make sure to avoid directly applying for too many loans, though, as this can hurt your score even more.

No matter what, only apply for a loan you can afford. It’ll keep your bank account and stress-levels at a comfortable level.

Credit Score of 569: Mortgages

Mortgages will be especially hard. If you do manage to get one, it may be a less established bank and/or a high interest amount. The principle on a house is higher than credit cards or auto loans. A high interest rate can ruin your financial life.

Look into FHA or Federal Housing Administration loans. They may be able to help. They accept low down payments and will sometimes take people with low credit scores.

If not, keep saving and building credit! Once you’re in a better place financially, traditional mortgages will be far easier to obtain.

Imagine the world of opportunities that will be open to you once your credit is good. Nice car? Check! Picket fence? Check. Live the dream!

If you want to be able to apply for loans, it’ll be hard work. That’s what we offer here at GoCleanCredit.com: strategic support. Our credit restoration experts can help you back on to your feet in no time.

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What is a Good Credit Score to Buy a House?

What is a good credit score to buy a house?

People looking to buy property often have thousands of questions running through their mind. But one of the most common is, “What is a good credit score to buy a house?” That’s because the better your score, the lower your interest rates. So, the less you will pay in the long run.

There are many rating systems, but FICO is the one most often used by lenders. Your FICO score can range from 300 to 850. But what makes an excellent credit score and what is considered poor?

Let’s take a look at where you fall and what options are available to you when buying a house.

Excellent Credit Score

As a general rule, an excellent credit score is anything above 760. If you’re above that marker, congratulations, you can get the best financing terms available when borrowing money.

An excellent credit score will mean you will get the lowest interest rates around. In the long run, you could end up saving thousands of dollars on your mortgage repayments.

As the FICO website says if you are looking to buy a property with a $216,000, a 30-year fixed-rate mortgage you could be looking at an interest rate of 4.2%. That’s a monthly repayment of $1,057. But what if your score isn’t as high?

Good Credit Score

A good credit score is anything above 660. With this score, you should still be able to find a loan, but you will be paying a higher interest rate.

Taking our example from earlier, a score of 665 could secure an interest rate of 4.82%. That would make monthly payments of $1,135.

It’s worth trying to improve your numbers before you start your applications. You can improve your credit score in a number of ways. Here are two options:

Removing a recent late payment. The most effective method is to call the creditor and request a goodwill adjustment. If that fails, you could negotiate the removal by signing up for automatic payments.

Removing a collection account. Paying your collection account probably won’t improve your score. Instead, try to negotiate with the servicer for a “pay to delete” — and remember to get it in writing.

Poor Credit Score

A poor credit score is anything 619 and below. For most mortgages, you will need a 620 credit score or higher. However, there are loans available for anything down to 570.

A FICO score of 625, using the same example as before, would secure a 5.79% interest rate. That’s a monthly repayment of $1,266.

It’s extremely important to raise your score to secure a reasonable rate. One of the best ways to do this is to speak to credit restoration experts.

There is no single path to restoring your credit score. By speaking to the experts they will find the best program for you.

Speak to GoCleanCredit.com today and receive a free in-depth credit consultation. It’s the first step to improving your credit score and securing the home of your dreams.

How To Lower Mortgage Payments With Bad Credit

how to lower mortgage payments with bad credit

If you’re in financial trouble you may be wondering how to lower mortgage payments with bad credit. Unfortunately, there’s not a one-size-fits-all answer — but help is out there.

The agency that owns or insures your mortgage will determine how you go about solving your issues. Before you can fix your financial troubles, find out which mortgage you have.

Fortunately there are only a few options available: Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the U.S. Department of Agriculture’s Rural Housing Service (RHS).

Let’s take a look at some of the options available to you…

Related: 4 Out-of-Box Ways Homeowners Can Build Good Credit

Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac have a similar process for loss mitigation. When asking for help under a Fannie or Freddie, your provider will review a set of options in a certain order. If you don’t qualify for the first, the servicer will move on to the second until they find some relief.

Both require you to complete and submit a Form 710  — Mortgage Assistance Application. You should say you are in trouble due to a loss of income or increase in costs.

A servicer may deem your financial difficulties to be temporary, given after a short-term drop in income or a one-off expense.

The servicer could also offer a long-term solution, if your financial issues are more permanent, such as disability or the death of a spouse.

VA Loan

The VA is expected to run through all its options before forcing the sale of a property. There are plenty available to you including:

Repayment plan. This is a written agreement in which you pay the normal amount and extra to cover the debt.

Special forbearance. With this option, the servicer agrees in writing to suspend payments or accept reduced payments. You can then negotiate a repayment option.

Modifications. This allows the servicer to change the loan without consent from the agency. Ultimately, this could lead to a longer pay-off period with lower mortgage payments.

FHA-Insured Mortgages

It may be possible to reduce your monthly loan payment thanks to FHA-HAMP, the Home Affordable Modification Program. However some borrowers are not eligible for that option.

Instead a repayment plan or forbearance agreement may be the options available. These do not change the terms of your loan but could help you pay off your debts.

RHS Guaranteed Loan Program

To reduce your payments on a Rural Housing Service Loan Program you have a few options available including:

Special forbearance. You can agree with the servicer to temporarily reduce or pause payments. You will then have a repayment plan put in place.

To be accepted for this you must have had a loss of income or increase in expenses and your payment has to be 30 days in arrears.

Modification. It is possible to permanently change your loan terms with a modification. There are two types available: a standard modification or a special loan servicing modification.

Speak to the people who know how to lower mortgage payments with bad credit. Contact  GoCleanCredit.com for expert advice and your full range of options.

Can Paying Off Collections Raise Your Credit Score?

Can paying off collections raise your credit score

“Can paying off collections raise your credit score?” It’s a question many people in financial trouble ask. And, unfortunately, the answer is not a simple one.

Paying off collections could boost your credit score, but only under certain circumstances. In today’s article, we’re going to look at your various options. You’ll learn the negative impact of collection accounts, as well as what to do if you find yourself in this unfortunate circumstance.

The Negative Impact of Collection Accounts

Collection accounts lower your credit score and tell lenders you have been unable to manage your finances. This could make it difficult for you to secure credit in the future.

The amount of the collection debt is irrelevant. If the debt is above $1, it impacts your score no matter how much you owe. A debt of $300 will lower your score by the same number of points as a debt of $100,000.

What Happens When You Pay the Debt

When you pay the debt, the collection isn’t removed from your account straight away. It will fall from your report seven years from the date of your first missed payment.

Even if you pay the debt, it is unlikely to result in a major boost to your credit score. However, the collection agency or creditor will update your information to show you have paid. Any future lenders will see that you dealt with the debt and may look favorably upon it.

Make an Arrangement With the Collector

Even though 95% of the time, paying off your debt won’t boost your credit score, there’s a way it could. When contacting the collector to settle, try to agree to a “payment for deletion”.

Remember to get the agreement in writing. If you want more advice on how to do this, contact Go Clean Credit today and speak to an expert.

File a Dispute With the Credit Reporting Agency

Do you think the collection account is a mistake? If you believe it’s inaccurate information, dispute it with a credit reporting agency.

It will then have 30 days to confirm the information they have is correct. If the record is wrong, then the entry could be corrected or (even better) removed.

Work With Credit Restoration Experts

You may be struggling with your financial situation, but Go Clean Credit has the answers.

So, can paying off collections raise your credit score? Yes, we have many credit repair programs available which will get you back on the path to financial success. There’s no one-size-fits-all answer, which is why we find the right program for you.

Each program starts with a free in-depth consultation from one of our expert advisors. From this, you will know the exact path to take for a better credit score.

Check out our different credit repair programs now or get in touch for more advice. Better finances and an improved credit score are just a few clicks away.