2007-03-15 04:03:07 · 6 answers · asked by Emarie w 1 in Business & Finance ➔ Credit
If you've already got bad credit, you may not be able to purchase a home except at a high interest rate. If your score is REALLY low, you probably won't be able to get a loan at all.
However, if you do get a loan and make all of your payments ON TIME, yes, it can help your credit score.
A mortgage lender is going to look at your score before they approve a loan though so you have to have a high enough score in the first place.
If you want to improve your score, the two things you can do that will help the most are paying bills ON TIME, and paying off debt. That means all your credit cards need to be under 30% of the total credit limit you have on them. Don't charge more stuff. Pay them off. Make more than the minimum payment due on credit cards. Always making the minimum payment never really gets you anywhere. You'll be in debt for the rest of your life making minimum payments.
2007-03-15 04:09:43 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
Yes and no. This is kind of a two sided question. If you purchase a home and make sure to pay all of your bills on time yes. When I say all your bills I don't just mean your house, electric, gas, etc. Hospitals, doctors, even Dish Network can report to your credit. Opening new accounts, people checking your credit reports, not paying your debt can all factor into a low credit score. Check out this link for more info on credit and credit laws:
http://www.creditinfocenter.com/
2007-03-15 04:12:03 · answer #2 · answered by lovingnights_4you 1 · 0⤊ 0⤋
If your lucky enough to find someone to give you a mortgage. It is not easy to get a loan to buy a home unless your credit is good and you have no debts. So if you are looking to buy a home with outstanding debts I doubt you will be able to buy a home. You can try but you will probably be told to pay off your debts first. Your debt ratio has to be in line with your income to be eligible.
Good Luck.
2007-03-15 04:10:15 · answer #3 · answered by devilgal031948 4 · 0⤊ 0⤋
you'll have to have decent credit to get a mortgage for the home to begin with. but once you've been paying your mortgage on time for awhile, it may help improve your credit. the best thing you can do is get a copy of your credit report and pay off your old debts, then keep up with all of your bills by paying them on time.
2007-03-15 04:08:36 · answer #4 · answered by LoriBeth 6 · 0⤊ 0⤋
If you can get a mortgage with bad credit, then having NO late payments will improve credit scores. Having NO late payments on any credit will increase credit scores. Write letters to companies that put derogitory remarks on your credit and ask what it would take to remove mark.
2007-03-15 04:11:57 · answer #5 · answered by Gunny Bill 3 · 0⤊ 0⤋
It may, but not directly.
Purchasing a home will make you more attractive to lenders because they know they can take your home if you don't pay them back so they may be more willing to lend to you. Paying your bills on time and keeping decent balances on your credit cards would be a better first step, though.
2007-03-15 04:08:22 · answer #6 · answered by Drew W 2 · 0⤊ 0⤋