A single medical collection can hurt your credit score by as much as 100 points! But what is a collection?
A medical collection is a medical debt that is sent to a collection agency. The collection agency will then try to recover the money you owe. This is recorded on your credit report and drastically effects your credit score.
In this article, you will learn exactly how to remove medical collections from a credit report. Read to learn more about how you can increase your credit score fast!
Find Out How to Remove Medical Collections from a Credit Report!
1. Dispute the Collection
One of the most common ways to remove medical collections from a credit report is to dispute the collection. How do you do that?
If you have a debt recorded on your report you don’t think is accurate, it’s a good idea to ask for proof that the statement is accurate. If the debt collector cannot validate the collection, it will make it easier to remove the collection.
Next, you’ll be able to file a dispute with the credit bureaus. To do this, you can contact the credit bureaus directly or get the help of a credit repair company.
Once a credit bureau receives your dispute, there are several ways a collection agency will handle it. Eventually, they will contact you, and you will either resolve the debt through negotiation or repayment.
2. Check How Old the Debt Is
After a certain period, typically seven years, a collection will disappear from your credit report. Check the lifespan of your collection. If it is almost due to disappear off your report, you may not have to pay it. Additionally, the debt collectors won’t be able to sue you to collect. In some states, the debt is revived, and it won’t disappear from your report.
3. Pay for Delete
One way to completely remove a medical collection from a credit report is to negotiate with the collectors to pay the amount. In exchange, the collection will be removed. Make sure the debt collector sends you a pay-for-delete letter in the mail. Otherwise, you won’t have any assurance that the debt collectors will remove the collection from your account once it is paid off.
Even though you now know how to remove medical collections from a credit report, it doesn’t mean you will be 100% successful. However, there is a more foolproof way to get rid of the collection for good! How?
Enlist the help of a credit repair company! Go Clean Credit is one of the leading credit repair companies. They have over a decade of experience removing collections from reports.
Go Clean Credit knows that good people have bad credit, sometimes through no fault of their own. They are dedicated to helping you find financial success and achieve your goals! For more information about how Go Clean Credit can help you remove medical collections from your report (and so much more!), contact them today!
If you are like most Americans, you already have a credit card or are planning to get one. However, the way you handle your credit card will have a huge impact on your credit score. If your credit score drops, you will have higher interest rates on your loans. Or worse, you won’t qualify for loans at all.
That’s why we’ve prepared a guide that will help you learn how to use a credit card so that it increases your credit score. In the article, we will cover the following:
If you do not use a credit card correctly, your credit score could drop. Therefore, we have some helpful tips that are sure to help you use your credit card in a way that will improve your credit score.
Firstly, try to use your debit card or cash whenever you can. Even small transactions on your credit card can add up, resulting in a large monthly payment. The more you use cash, the more likely you will be able to keep debt to a minimum and your credit score high.
Note: A good rule of thumb is to only use your credit card for things you need, not the things you want. In other words, if you go on a shopping spree, use your debit card; if your car needs maintenance, use your credit card.
Secondly, never miss a payment. At the end of every month, it’s important to at least make the minimum payment. If possible, pay off the entire balance. If you make a late payment or miss one, it can lower your credit score by 50-75 points! Consider setting up autopay if you tend to forget to make those monthly payments.
Lastly, never go over your credit card limit. If you spend even a penny over your limit, your score can drop by 40-50 points! This point difference is staggering, especially if you plan to buy a house or car soon.
Most Americans have three to four credit cards. However, depending on your circumstances, you may prefer to have more or less. So what are the pros and cons of having more than one credit card?
Pros of Having More Than One Credit Card
Keeping multiple credit cards allow you to spread outstanding balances. In effect, you’re less likely to reach your limit on one or more accounts. In other words, having more credit cards will give you leeway and flexibility. It’s usually a good idea to have a backup credit card in case your usual card is not accepted or is lost or stolen.
Moreover, different credit cards offer rewards. For example, one card may offer points for hotels or airline miles. Another card might give you cashback on groceries or gas. No one card will give you all the rewards, so having multiple cards might benefit you. However, don’t gravitate toward cards just because of their benefits. Consider whether you’ll use the credit card benefits or if they’re just a nice perk.
Cons of Having More Than One Credit Card
First, it’s not always easy to keep track of spending and payment due dates with multiple cards. For instance, it can be easy to forget how much you’ve spent on each credit card amount.
As mentioned, if you go past your limit, your score could be damaged. Likewise, if you lose track of the payment date, you may miss a payment deadline. The result is a damaged credit score! So if you have a hard time sticking to budgets or juggling too many due dates, acquiring multiple credit cards may not be for you.
In the end, try to keep your credit utilization ratio to 30% or less. In other words, if you are spending more than 30% of your total available credit on each card, you have a greater risk of damaging your credit score.
Note:It’s usually not a good idea to have store credit cards. For one, they increase the temptation to go on more shopping sprees. Moreover, store credit cards also decrease the age of your overall credit history, ultimately lowering your score. The high-interest rates are simply not worth it.
So, How Many Cards Should You Have?
The answer depends on your circumstances. However, as long as you make payments on time and don’t pass your limit, your score shouldn’t be negatively affected.
When learning about how to use a credit card, it’s important to know the types of repayment methods. Basically, there are a few strategic ways to pay off your credit card balances. Listed below are two techniques to successfully pay off a credit card balance:
The Snowball Method. It involves paying off the smallest balances first. After it’s paid off, you move to the next highest balance. If you have a lot of debt on different credit cards, this method may work best.
The Avalanche Method. With this method, you pay off the debt with the highest interest rate first. If you have high interest accruing on certain accounts, this method may work best.
As you start making these payments, it’s always best to pay more than the minimum whenever possible. Why?
When you pay more than the minimum, you decrease the amount of interest you pay over time and pay off your debt sooner. Moreover, your credit score can drastically improve as you pay off your debt. Lastly, having little to no credit card debt makes it easier to make large purchases, such as buying a home or car.
Before deciding on a card, check to see if there are annual fees, what the APR amounts to, if the card is accepted at your list of frequently shopped stores, and how the benefits measure up to the costs of the credit card. Why? You need to learn how to use a credit card that you plan on using.
Cards with Perks
As noted, some credit cards offer rewards or extra perks. While this might be a great benefit for some, it’s important to ask yourself whether or not you plan to actually use those benefits.
Spending hundreds each month to collect a reduced airfare or a free concert ticket once in a blue moon may not make sense for your budget. Do your research and don’t let a credit card’s marketing ploy win you over.
Credit Cards with an Annual Fee
If it sounds too good to be true, it probably it! Cards that have amazing rewards, low-interest rates, and superior payment options likely has an annual fee.
Should you get a credit card with an annual fee?
When you’re looking at a credit card with an annual fee, take a look at what benefits they offer and compare the cost to what you’ll get. Is the annual fee too high for what you’ll be getting? If so, that credit card might not be worth it. Ask yourself if you will actually use those benefits, if there are any hidden fees, or if there are better deals out there.
Credit Cards from Unions
Banks aren’t the only institutions that offer credit cards. If you’re not having much luck getting approved for one, consider credit union credit cards. They offer more chances to get a credit card that can potentially make it easier for you.
Should you get a union credit card?
Credit unions are member-owned nonprofits. As a result, when you get a union credit card, you generally get a more personalized experience. Additionally, credit unions offer low-interest rates and flexible repayment methods.
Nonetheless, there are a few things that you should scrutinize. Credit union has specific entry requirements. When you join a credit union, all your accounts are tied together. And, credit unions are easily affected by local problems in the community.
In the end, the type of credit card and where you get it depends on your unique situation.
Need to Repair Your Credit?
Now that you know all about how to use a credit card, it’s important to note that it’s are a great tool for preparing yourself for greater investments down the road, like purchasing a car or house. Nonetheless, if used irresponsibly, it can harm your future buying power.
If your credit score isn’t where it should be because of credit cards, contact Go Clean Credit. Go Clean Credit is a top credit repair company in Arizona that is passionate about getting you on the road to success. Over the last 15+ years, this credit repair company has helped thousands of people reach their financial goals.
Contact Go Clean Credit today to learn more about how they can personally help you!
Your credit score is an important number that tells lenders how reliable you are at paying back loans and credit. A high credit score will qualify you for the best terms and conditions when taking out a loan. Therefore, a drop in your credit score can cost you thousands of dollars over the repayment course of a loan. If your credit score dropped 100 points, it can drastically affect it.
But don’t despair! It’s possible to fix the situation. In many cases, there is simply an error in your report. Read on to learn what you can do if your credit score dropped 100 points!
What To Do If Your Credit Score Dropped 100 Points
1. Identify the Problem
If your credit score has dropped 100 points, there are probably some major problems that have recently appeared in the report. For example, there could be an error on your report, you may have made a late payment, or you may have an outstanding collection due.
To determine what made your credit score drop 100 points, you will have to get ahold of your credit report and identify the problem. To acquire a copy of your report, you will have to contact one of the three major credit bureaus or go to annualcreditreport.com. After you verify your identity, you will have access to your report. Next, you can analyze it to find where you might have a problem.
2. Remove Errors on Your Report
If your score drastically drops 100 points, chances are there is simply an error on the report. According to the Federal Trade Commission (FTC), one in every five consumers have errors on at least one of their three credit reports. That means that there is a high chance you may have an error in your report.
If you believe there is an error on your report, you will have to contact one of the three credit bureaus and report the error. They will then investigate the items. If they cannot be proven true, the items will be removed from your report. You should try to find copies of the documents that support your claims.
3. Remove Late Payments
Late payments on loans and credit cards can drastically affect your credit score. For example, a collection can lower your credit score by 100 points. Likewise, removing even a single late payment from your report can improve it anywhere between 30 and 100 points! Moreover, late payments can stay on your report for up to seven years.
Removing a reported late payment isn’t easy. However, it isn’t impossible either. It takes a lot of persistence to either have a goodwill adjustment or find inaccuracies.
4. Remove Debt
Debt weighs heavily on your credit score, contributing to 30% of your overall score! Even a small amount of debt on your report can drop your score hard and fast.
Unless the debt is an error on your report, this will likewise be difficult to remove. However, it isn’t impossible. To remove debt from your report, you will likely have to contact the original creditors. If the debt is past the statute of limitations, the creditor can no longer legally demand payment. Moreover, be careful not to admit that the debt belongs to you.
5. Build Your Credit The Old Fashioned Way
If you have no errors on your report and cannot remove any late payments or collections, you may have to build your credit the old fashioned way. To build your credit fast, charge small amounts to your credit card and pay it off at the end of every month or even become an authorized user.
However, the time it takes for you to repair your credit will vary. To improve your score as fast as possible, you will want to employ multiple strategies at once. You can bump up your score in as little as 30 days if you pay down revolving balances, remove recent late payments, remove a collection account, and/or raise your credit limit.
If you’ve been reading about ways to protect yourself against identity theft, you’ve probably heard of a credit freeze. In this article, we will discuss everything you need to know about freezing your credit report. Keep reading to learn how you can freeze credit for free!
What is a Credit Freeze and What Does it Do?
Essentially, freezing your credit means restricting third-party access to your credit report. Because most creditors need to see your credit report before they approve a new account, freezing your credit will make it harder for identity thieves to open accounts in your name. However, your credit report will still be accessible to existing creditors, debt collectors, and government agencies. By federal law, credit freezing is a free service that does not impact your score.
So what does a credit freeze do for you? When you freeze credit, you are better able to control your assets and debt. However, it may make it more difficult for you to qualify for a new credit card or a loan. Additionally, it can make it difficult for you to access your own FICO score. It does not, however, prevent you from getting your free annual credit report.
How Long Does a Credit Freeze Last?
When you freeze your credit, you can temporarily lift or permanently remove it at any time. However, unfreezing your credit requires you to have a password or PIN. These options can be helpful if you want to open a new account, take out a loan, or get a new credit card since you can’t otherwise do these things without access to your credit report. However, in most states, the credit freeze will expire after seven years.
What is the Difference Between a Credit Freeze and Credit Lock?
You may have heard the terms credit freeze and credit lock used interchangeably. However, there are some differences between the two. The biggest difference is that credit freezes are protected by federal law, while credit locks are not. That being said, a credit freeze is much more secure than a credit lock.
For instance, while unfreezing your credit requires you to call the credit bureau and provide a PIN or password, unlocking your credit can be done anywhere at any time -even from your phone. A credit lock is a good option to use as a preventative measure to guard your credit report from identity theft. However, a credit freeze is a better option if you believe your credit report and personal data have been exposed.
Moreover, by federal law, all three credit bureaus offer free credit freeze. On the other hand, a credit lock is free at TransUnion and Equifax, but Experian requires a monthly fee. Whether you choose to either freeze credit or lock it simply depends on whether or not you need a secure way to protect your personal information through federal law, or you wish to protect your report while still having easy access.
How Do You Freeze Your Credit Report?
To freeze your credit report, you will need to contact each of the three credit bureaus: Equifax, Experian, and TransUnion. You will need to supply your name, address, date of birth, Social Security number, and other personal information. After your request has been processed, the bureau will provide you with a PIN number or password unique to you. If you wish to lift the freeze, you will need to have the PIN or password handy, so keep it in a safe place. Make sure you do this for all three bureaus in order to completely freeze credit.
Easily Get Credit Help Today!
If you have more questions about credit, a company like Go Clean Credit can be helpful! They are a passionate credit repair company that works to help individuals understand and repair their credit scores. For more information about how they can help you, contact them today!
Debt can live long after you think you have killed it off. Zombie debt is debt that is past the statute of limitations in your state but still hurts your credit score.
Eliminating zombie debt is not easy but also not impossible. It simply requires a bit of creativity on your part. The experts at Go Clean Credit are here to help! Here are tips to help eliminate zombie debt from your credit report once and for all.
Statute of Limitations
The first thing you should do is determine the statute of limitations for debt collection in your state. This is a crucial step that will dictate how you proceed.
Most states have limitations of seven to ten years, but this varies. Once you know the statute of limitations, you can take the next step – determining when your account last saw activity.
This is where you’ll need to be creative. It is likely that you will have to speak with one of the original creditors on your old account. If the account was charged-off and is past the statute of limitations, the collector can no longer legally demand payment.
They also can’t send further reports to the credit bureau, though you can expect them to try. This is why these types of debts are called “zombie” debt as – they can come back to hurt you.
You must proceed with caution at this point. You will have to send a letter or speak to the creditor on the phone about removing your debt. You’re doing this on the grounds that they can no longer legally collect from you. It is crucial that you remember that at no point during the exchange can you admit that the debt is yours.
Refuse to pay the debt or make any payments. The best approach is to say that you do not know anything about this debt. All you know is that they cannot collect from you due to the statute of limitations.
Be Subtle and Forward
Make your point without demanding anything or getting yourself in trouble. Sending a copy of your credit report and highlighting the debt you want to be written off is a great tactic.
This lets the creditor know that you are aware the debt that can no longer be collected. At the same time, you’re not admitting to anything or speaking with them on the phone at any point.
Credit repair companies can help you through this process. They can even speak on your behalf. Their experience will serve you well on this kind of financial issue. Zombie debt can remain on your report and hurt you more than you think.
Credit repair companies understand this and take actions to help eliminate it from your life completely and forever. You do not have to do this on your own. Credit repair companies like Go Clean Credit have your best interests in mind and are happy to help.
For more information about how to slay zombie debt, contact Go Clean Credit to get back on the right track. We have various different credit repair programs that are offere to help you overcome your unique credit situation. 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.
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!
If you are a company that has bad credit and you are looking to finance equipment for your business you might be wondering if you will be successful in getting the right lease or loan? Bad credit can be defined as having a credit score between 550 and 620, which means you are a high credit risk to lenders. In order for you to finance equipment with bad credit, you have to prove you are not a high risk. You are able to do this by raising your score overtime or you can start by taking the negative information off of your report. Show that you have a better payment history over the past couple of months and you’re working towards being a better borrower.
What’s better, a bank or an alternative lender?
If you have less than a 620 FICO score, you are unlikely to be a candidate for a loan from a traditional lending institution like a bank. Equipment financing with bad credit, however, is much easier with alternative lenders, like Charter Capital. A lender like Charter is a better route to follow because they will have more lenient requirements. At one time or another, just about every active business will face the challenge of replacing an old piece of equipment or a software program or acquiring new widget machine to help keep their business competitive or to accommodate growth. These are good challenges to have. The challenge that’s not so good is figuring out how you’re going to pay for it. What you really need it to know what your options are and that’s where Charter Capital can help.When a customer applies for a loan or a lease, Charter creates an individual transaction profile that identifies all of the major decision components used by our lenders. We match that against profile against our Matrix to determine the best lenders for that customer’s specific need and present that information to our customer so they can make an intelligent choice. When a customer with bad credit asks for assistance the process is still the same.
A few steps to repair your credit score:
There are a few things you can do to lower your borrowing risk if you want to better your chances of getting approved. One thing you can do is show that your business is booming. If you can show that your business has been increasing over the past couple of months lenders may be more forgiving when it comes to bad credit. Another thing you can do is find someone who is willing to be a trusted cosigner. This person should be someone who has a better credit score than you because this will allow for a more desirable rate. Lastly, you can make a big downpayment from the beginning. Lowering the loan amount from the very beginning will show lenders you’re committed to paying it off quickly.
Financing equipment with a bad credit score might be challenging, but you have the opportunity to improve your score in the process. Follow the simple steps to achieve a better credit score and in turn, you will prove you are not a risky borrower.
There is a multitude of reasons why someone may choose to apply for a joint auto loan. Some of those reasons include having poor credit, limited credit history, or insufficient income to purchase a car individually. Regardless of the reason, one seeks a joint auto loan, there are several questions will come to mind.
Whose credit score is used on a joint auto loan?
The question of whose credit score is used on a joint auto loan is probably one of the most important. Incomes can be combined, but credit scores, unfortunately, cannot. The truth is that it is important for both parties to have an acceptable credit score and payment history. The lender is taking both applicants’ credit history and financials. Both applicants will be listed on the loan, car title, and will share responsibility for repayment.
What are the benefits of getting a joint auto loan?
A joint auto loan can help you get approved for a car loan you could not qualify for on your own otherwise. This can include a larger loan amount as well as a lower interest rate (APR). Lower interest rates on loans mean that you pay less interest over the lifetime of the loan.
Is a joint auto loan the same as having a cosigner?
The short answer is no. In some ways, getting a cosigner is like a joint auto loan. This is because in both cases it can help you get a loan approval. However, a joint auto loan means that both parties own the car and are responsible for repaying the loan. Joint auto loan applicants both share responsibility for damages caused should there be a car accident. A cosigner does not share joint ownership of the car, however, has a liability to repay the loan if the main applicant fails to make payments. A cosigner with excellent credit can improve your chances of being approved for a loan while allowing you to retain full ownership of your new vehicle.
Can I remove a joint applicant or cosigner?
If you improve your credit and financial situation, you can greatly increase your chances of getting an independent loan approval. You can re-finance auto loans and transfer to sole ownership if you meet the requirements to qualify for an auto loan on your own. Poor credit is not a lifetime sentence. There are several ways you can improve your credit history and credit score. The most important part is having the dedication to do what it takes.
Your credit score is a golden number that can make you or break you when it comes to getting approvals for the things you want in life. Your credit score can be positive enough to get an okay on a car you always wanted, or it can be low enough to cause lenders to turn you down perpetually. If you have a 520 credit score, you may qualify for some things, but the lending criteria will be much different for you than it will be for some other people. The following is some additional information about the 520 score.
The FICO Scaled
FICO is easily the most commonly used credit rating system that exists. If you have a 520 rating, it means that you are lower than the middle score between 350 and 800. The category that creditors will put you in at that point is the poor credit category. A score like that usually has a strong delinquency behind it. You can recover by getting some credit and then making faithful payments no matter what’s going on in your life. If you plug away for six to 12 months, you should see a significant rise in your score. Until then, you may have some difficulty getting the financial products that you desire at a rate that you can appreciate.
What 520 Means for Personal Loans
A personal loan lender will approach your credit score in one of three ways. This type of lender may outright deny you. The second option that the lender may take is an option to request collateral from you. The collateral may be something such as a title lien that you allow them to get or a home deed. The other approach they may take is charging you an extremely high-interest rate. For example, you may get the loan, but your interest rate might be 20 percent as opposed to 6 percent.
How a 520 Affects a Car Note
Car dealerships work with just about anyone. Your success depends on the dealership that you go to. You do want to get a car, but you don’t want to get into a deal that you can’t afford. Therefore, you must take your time, conduct thorough research and negotiate for yourself.
What You Can Do About a 520
You can start building up your score once you get the opportunity to utilize credit responsibly. Timely payments make up a huge portion of your credit score, so you want to make sure you make your payments swiftly, and you never get behind. One bad payment can push your score back many points, so you want to avoid that like the plague.
A credit repair service can also help you to boost your credit and get back on the radar as a responsible payer. Experts who offer these services can help you get back on your feet and obtain the buying power that you once before had. Call for a consultation to see how they can assist you today.
Whether you forgot about a bill or didn’t have the funds ready to go, missing a credit-card payment is problematic for your credit score and history. Before you worry too much about this situation, get familiar with the steps that you can take to resolve it. What happens when you miss a credit card payment? Several issues arise all at once.
Late is Late
When you’re late on a bill, it’s considered late from the moment that the due date has passed. The penalty for a late payment at 30 days is much different than the 90-day type, however. Creditors understand that a missed payment after a couple of days may be a simple oversight. Everyone is human.
If you go 60 or 90 days without paying anything toward the card, the creditors see this fact as a real aberration from your normal behavior.
Look for the Fees
Fees are inevitable if you miss a payment. There are normally specialized fees for missed payments that can cost $30 or more. In addition to late fees, there are also interest charges. The interest charged on your balance may increase as well because of the accumulating fees.
Be watchful of the fees impacting your credit limit too. If you are close to your credit limit, an overspending fee may apply to your situation.
Speak to a Representative
Don’t be shy when you miss a credit-card payment. Contact a creditor representative who has your account open on their computer screen. Creditors who are aware of your financial situation will be more likely to help you resolve the situation, and will have
You’re welcome to ask for a refund on a late fee or other charges if you’re paying something onto the account right now. Be aware, however, that the creditor has the right to approve or decline your request.
Pay More Than the Minimum
The only way to resolve your situation is by paying off the balance. The minimum payment may be tempting, but it amasses interest down the road. Take a look at your cash flow, and determine a reasonable payment plan. You may not pay down the balance this month, but you’ll be on your way to doing so. The accumulated interest will diminish too. Interest accrues daily; so, prompt payment is favorable.
Set up Automatic Drafts
To protect yourself from any future missed payments, set up automatic drafts on your bank account. You pick the date and amount that will be drafted from the bank. Each month the payment amount will automatically be paid from available funds in your account.
Your creditor may offer an incentive to keep up this automatic system, such as a lower interest rate or canceled late fees.
Examine Your Credit History
What happens when you miss a credit card payment? Your credit history is forever changed. Obtain a copy of your history so that you can see how the missed payment affects your credit. Depending on the severity of the situation, your history will now have a negative mark on it.
Look at your FICO score too. Your FICO score can drop as much as 50 to 75 points if the payment was egregiously late. Late payments warn creditors that you may not be responsible enough for another line of credit.
If you make a habit of missing payments, it time to take a look at your financial situation. Paydays may not line up with your credit-card statements, for example. Call your creditors to set up due dates that match with your income. Most creditors will be willing to change the due date as long as you are able to make timely payments. Your credit score and history will be much better at the end of the day.
Increasing your credit score can seem overwhelming and you might even think it’s next to impossible. But you don’t have to settle for a low credit rating, even though with a credit score of 530, you have some work ahead of you to improve your rate.
Luckily, there are practical steps you can take to help raise your credit score. Let’s take a look at what you can expect with a credit score of 530 when it comes to credit cards and loans — and what you can do to boost your credit rating.
Credit Score of 530: Credit Cards
Attempting to get a credit card with a credit score of 530 can be difficult. You might be lucky enough to get approved, but you can expect to pay higher interest rates. You might also have to put down a deposit before receiving your credit card.
Another option you could take is getting a secured credit card with a reputable company. You’re required to put money down in advance, but it’s a great opportunity to easily build your credit score, and it can help you to make smarter financial choices.
Credit Score of 530: Auto Loans
With a credit score of 530, you can expect to pay a pretty high annual percentage rate (APR) on an auto loan. You might have to provide a large down payment and the dealership could even require you to have a co-signer for added security.
There’s the option of going to a “buy here, pay here” car dealership, but that doesn’t do anything to help build your credit. Plus, the amount you end up paying will be substantially higher than if you were to obtain a traditional auto loan.
Credit Score of 530: Home Loans
Buying a home with a credit score of 530 can be challenging. The Federal Housing Administration (FHA) offers loans with a 3.5% down payment to those with a credit score of 580 or more. If your credit score is lower than that, it increases to 10% for an FHA home loan.
For example, if you wanted to buy a $140,000 home with a credit score of 530, your down payment would be $14,000. With an increase of 50 points to your credit rating, it would go down to just $4,900. Talk about a great reason to build your credit!
How to Improve a Credit Score of 530
Now that you know what to expect with a credit score of 530, you’re probably wondering how you can improve your financial life by increasing it, right?
What you need is a simple, straightforward approach that gives you the opportunity to make small changes to improve your credit over time, and begin taking the right steps toward total credit recovery.
You don’t have to tackle credit repair on your own! Give us a call today at 1-866-991-4885 to learn more about one of our affordable credit repair programs, and we’ll help guide you down the road to better credit in no time.