Is it difficult to get a loan with a credit score of 635?

Question

I'm wondering if it is difficult to get approved for a loan with my FICO score of 635. I have a high interest credit card and I want to pay it off or transfer the balance, but I don't want to apply and get denied because I've heard it's bad to apply too many times...it counts against you supposedly??? Any ideas?
Thanks!

Answer 1

For getting any kind of loan Credit History is much more important than credit score. Often, the lack of credit history is equated with bad credit. You should be aware that lenders will go through your credit report once you apply for loan for buying a house. Therefore you should polish your credit report. Anyway, in order to establish a good credit history and at the same time risen your credit score in a short time do following things:

1) Close all of your credit cards but one. It reflects in your credit report and it is a very good sign. For instance say that you have 5 credit cards with $1000 credit limit for each. Therefore you are responsible for $5000 of possible debt. But when you close 4 of them, now you are only responsible for $1000 of debt which lowers the level of risk of lending money to you.

2) If you have any loan, like car loan or any balance on your credit cards, try to pay more than your monthly payment for 6 months or something. I mean say your monthly due on your car loan is $150, try to pay $250 each month. Lenders can see these trends in your credit report and they see that you’re a responsible borrower.
If you don’t have such loans, I suggest getting a $3000-$4000 loan and paying it off in full in 5-6 months. You might pay $200-$300 of interest but you will save thousands of dollars in your home mortgage and interest rates.

Also checkout http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php
There are lots of articles there, related to your question, which you can find useful to boost your credit.

Answer 2

That should be good enough to get a loan. Make sure you go through a bank. These lending institutions will give you a loan, but put it at a very high interest rate. That will only help to lower your credit rating. You could always try to find a credit card with a lower interest rate, and transfer the balance to that.

Answer 3

A score of 635 is not all that bad. It's not wonderful, but it is not awful either. You should be able to get a loan with that score.

Answer 4

635 is in the direction of the low end of proper credit for a house yet lenders look at greater suitable than credit. they're going to look at your income, debt to income, very own loan to truly worth... to be sure the opportunities of having their money lower back. in case you have a stable activity, low debt and your down cost will placed you in an equitable place then you certainly ought to have the skill to acquire a private loan. Your cost would be based on your credit so it rather is advisable to re-examine financing with this variety of marginal score. bear in mind that any late money owed and collections will must be paid till now ultimate on a house.

Answer 5

There are 2 types of personal loans – secured personal loans and unsecured personal loans. Secured personal loans require you to pledge any of your assets like you house to the lender as collateral. Many people choose this type of loan due to many benefits like lower interest rates, long repayment time and easy terms and conditions. But your asset is under threat if you cannot make timely payments. Your asset can be taken over by the lender and thus you lose the possession of it.

http://pay-your-debts.com/category/Personal-Loans-For-Your-Personal-Goals.html

Answer 6

Seventy percent of all Americans have bad credit, yours is good, not great. Great would be in the 700's mine is quite low, so I deal in cash.

Answer 7

I think it depends