i have no credit, but i do have a bad history with credit collectors.... i was told by a loan officer that i need to open 3 lines of credit in my name to be eligible....does this mean it is impossible to get a home loan in the next month ? I putting my car in my name this week, that should help and i have applied for a department store card,but i think i was denied. what else can i do to open 3 lines of credit in a 2 week time span? should i try for a very small personal loan?
2007-03-26 11:07:04 · 12 answers · asked by Anonymous in Business & Finance ➔ Credit
With no credit history (or even bad credit history), you probably won't qualify for much right now.
A while back, you might have had some luck with what is known as a sub-prime loan, but rules have changed recently and they are much harder to qualify for.
You need to focus on establishing good credit now and in 12 months to two years from now, I would then look for a home loan. Your chances now are slim to none for a good mortgage with a good rate. Whatever you get now will most likely be very high interest.
Here are 10 steps to improving your credit:
1. Pay your bills on time.
2. Keep credit card balances low.
3. Check your credit report for accuracy.
4. Pay off debt rather than moving it around.
5. Keep your credit cards - but manage them responsibly.
6. Don't open multiple accounts too quickly, especially if you have a short credit history.
7. Don't open new credit card accounts you don't need.
8. Don't close an account to remove it from your record.
9. Shop for a loan within a short, focused period of time.
10. Contact your creditors or see a legitimate credit counselor if you're having financial difficulties.
Good luck and I hope this info helps.
2007-03-27 13:06:01 · answer #1 · answered by Quicken Loans 5 · 0⤊ 0⤋
First, it is important to keep in mind that you probably did not destroy your credit in a few weeks...nor will you be able to repair it in a few weeks.
Just opening some accounts will not automatically make you qualified for a mortgage loan. After you open the accounts, you have to show a history of on-time payment for at least a year. If you have collections and charge-offs, you should take care of those first and foremost. Then try to establish good credit.
Purchasing a home is a huge undertaking...I cannot stress enough that you should not rush into this! If a mortgage company is going to offer you a loan with your bad credit history, chances are you are going to get hosed with a high interest rate, mandatory points or other exorbitant costs. Take time to repair your credit. You'll be glad you did!
2007-03-26 11:32:57 · answer #2 · answered by YSIC 7 · 0⤊ 0⤋
sounds like crap to me. Even if you do open 3 there will be no history for them to use in your favor. Not too mention credit that is open will count against you since it is debt. How could owing more money help you get a loan? Most important will be the difference between what you make and what you owe. Also they will want you to have worked at your present job for at least 12 months. If not 12 months it is a little tougher to get approved. I also doubt with bad credit you have a chance of anything being approved in one months time. Unless you have a huge chunk of change to put down.
Good luck but no one wants to give money to you if you have had poor credit and it takes sometime to build it up. It certainly is more work then just getting a few stores to approve you for their credit cards.
2007-03-26 11:20:20 · answer #3 · answered by Sowhat 3 · 0⤊ 1⤋
The first thing you should do is stop by Linen 'N Things and return that velvet blanket of denial.
YOU NEED TO GET YOUR CREDIT AFFAIRS IN ORDER BEFORE BUYING A HOUSE!
This takes time. And by time, I mean months and by months, I mean at least 6 of them to show some kind of improvement in your credit behavior and responsibility.
Stop trying to rush THIS PROCESS.
Get your heads out of the clouds and come back down to where the rest of us humanoids live.
Start small. Make every car payment on time for 3-6 months and pay ALL of your bills on time.
Then apply for a department credit card after 6 months of so. Then build your way to a home.
When you rush the process, it is like flooding an engine to a car. You will go nowhere very fast.
Slow down. Take your time and do this right.
2007-03-26 22:41:05 · answer #4 · answered by DaMan 5 · 0⤊ 0⤋
Opening a few line of credit will help you to rebuild your credit history so you can be approved for a home loan. You will have to make at least 6 monthly payments to help improve your credit history.
Since you been denied for credit, I have listed a site at http://www.bad-credit-credit-card-for-people-with-bad-credit.info/ that has a free list of secured and unsecured credit card companies that will issue credit to people with bad to no credit so you can start to build your credit history in a positive way.
Good Luck
2007-03-26 16:42:51 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Well opening 3 credit cards is pointless because the banks look at them for three years and if your just buying a car that might affect your credit a bit ...I am a loan officer so if you like i can try and help you get a home loan that wont have a screwed over interest rate.
just e-mail me so we can talk.
Britt_Alex@yahoo.com
2007-03-27 12:16:26 · answer #6 · answered by BB 2 · 0⤊ 0⤋
If your credit score is poor and you are looking to buy your home, you can go for a bad credit home mortgage loan. Poor credit history includes series of late payments, bankruptcy or failure to pay bills. No matter how bad your credit history, with a bad credit home mortgage loan, you can easily borrow money to finance your house. This helps you to buy a home, redecorate your home or consolidate your loans. This type of loan reduces your total monthly payment because of lower interest charges and liabilities. As this loan gets tax relief, your tax liability reduces.
Bad credit home improvement loans provide for only the necessary improvement to your home and you have to explain any extra improvements. If you are looking for cash for any non-essential items, try to get the period of your mortgage extended.
2007-03-27 02:45:23 · answer #7 · answered by Anonymous · 0⤊ 0⤋
If you have a bad credit history, you probably can't fix it in a couple weeks. I'm not sure how putting your car in your name will help - whose name was it in before?
Repairing a bad credit history takes time. Good luck.
2007-03-26 11:14:46 · answer #8 · answered by Judy 7 · 0⤊ 0⤋
Well do what me and my hubby is doing go under a first time buyers plan.Now if you have good credit you should be able to get a loan.
2007-03-26 11:17:58 · answer #9 · answered by Lady J 2 · 0⤊ 1⤋
If you live rural and get denied for a conventional loan you can try USDA.
Go here:
http://www.rurdev.usda.gov/rhs/sfh/indiv_sfh.htm
2007-03-26 11:15:50 · answer #10 · answered by ♥ G ♥ 6 · 1⤊ 0⤋