credit score?

Question

I am looking to get a mortgage on a home(my first)i know credit scores effect that,my score is 642 which is fair so i have been told,my question is my fiance's score is 545 and i know thats low.He is the only one that works beause i am a stay at home mom,will they go on both our scores or can they just use my score or only his because hes the financial provider.And if we cant get a mortgage will this hinder us on trying to rent a home?

Answer 1

That's a tricky question, usually for a family they look at the overall financial health of a family and their ability to pay it off. To be completely honest your scores are not high enough to warrant buying a house at this time. If you did the math and depending on where you live, it might be cheaper for now to rent than to purchase a new home. You really can raise your score in a matter of months, and if your husband it he primary bread winner then it would be in your best interest to raise his score especially because -- while they may consider your score, since you dont provide a large portion of the income your ability to pay off loans is negligible. Focus now on rebuilding both of your scores-- now that you know what your scores are, sign up for a credit score tracker that will alert you when and how changes are made, and also get a full credit report to see what things you can fix asap.

Let me share with you my tips that you can use to build your credit score quickly. I raised mine to well over 700 points fro 500 using these steps in less than a year -- :

# Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score tracking listed below. It really helped my get my score up.)
# Never Miss a Payment, Starting Today
# Never use more than 20% of your Available Credit
# Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
# Extend Your Credit Limit on Cards You Already Have before You Get New Ones
# Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
# Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
# If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
# Take out a Small Personal Loan and Repay it Over a Year
# Ask Someone With Good Credit if They will Account Shadow you

Read more here:
10-Ways to Boost Your MyFico Score
http://millionster.com/articles/debt/increase-fico-credit-score/


When you're trying to build a solid credit score it's important to get a comprehensive view of what is actually effecting it...
Your Credit Score (also known as your MyFico score) is calculated with the following breakdown:
35% - Payment History
30% - Credit to Debt Ratio
15% - Credit History
10% - New Credit
10% - Credit Types in Use

If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score

Answer 2

His score will be the one that counts. Mortgage companies want to know what the income provider's score is, so your score will not really be taken into consideration.

I would highly recommend that you spend some time researching credit rebuilding. My score used to be 545 (ironically enough, the same as your husband's) and was able to rebuild it to 680 within 10 months.

Also, keep in mind that there are ways you can get a decent loan without having the best credit score. A larger downpayment will help as will showing the bank that you have easily convertable assets.

Hope this helps!

Answer 3

Since hubby is the only one working, his score is going to count most. You may get a mortgage but it's going to be subprime and a really bad interest rate.

Perhaps you should start saving for a cash downpayment now and work on cleaning up and improving both credit scores. Maybe you can get a part time job to help clear up credit problems or put money into savings.

You definitely want to be careful of "creative financing". Read all the fine print. What the broker says and what the contract says may be different. A lot of people are in serious financial problems over interest only loans, especially the ones with deferred interest. Interest rates make a big jump sooner than expected. Payment goes way up, loan more than home value ....

Answer 4

You can't get a mortgage in your name alone, because you aren't employed. You'll have to get a joint mortgage, and yes, your boyfriend's lower score will have a negative impact.

Start working with a mortgage company now, to get pre-approved for a mortgage. That way, you'll know what you're up against.

Whether or not you can rent a home will depend on a number of factors. Some landlords (and property management companies) will do a credit check prior to renting a home to you. My guess is, you can probably get approved to rent, though.

Answer 5

If they use only your score, they would use only your income which doesn't sound like it would work. If you want to include his income, his score would be looked at also. You might have to wait for awhile to buy a house, and get both scores up, and save up some additional money for a down payment.

A low credit score can also hinder you getting a rental home.

Good luck.

Answer 6

I got my credit looked at yesterday and I've been told you need at least a 680 to get a morgage....