credit score of 515 can i buy a house next year?

Question

I am working on raising my credit score i know it is bad and i have many things on my report that look horrible some very old 5 years or more i am working on the small stuff first if i don't get all my old debts paid by june of next year when i want to apply for a loan can i still be approved or not? how long would it take to fix it well enough to be offered a mortgage loan

just so everyone knows i go into this with my eyes wide open. i already rent a3 bdrm house for $1000 so i know i could buy a house for less than that. most of my bad debt comes from at least two years ago. just trying to catch up now that my husband is done with school

i also pay all heating elec. water and do alot of my own repairs because it would be the second coming before my landlord got to it.

Answer 1

As you may or may not know it is very difficult to buy a house now for people with low credit scores (less than 700.) The stock markets are falling and companies are failing because they lent money to people who were not creditworthy at ridiculous rates they could not afford. So to be blunt you don't have a lot of opportunity now as it stands, but that's not to say there isn't hope. First let me say that for you it may be cheaper and more financially sound for you to rent until you either get a better credit score or the housing economy improves again (which can take years). Fixing your credit score though won't take as long so focus on that for now.

It doesn't take long for short term changes like account balances, payments, and available credit to show up on your credit report and effect your score -- likely these are the things to have impact over the short term, and you have a better change of fixing your score if you try to address one of those issues, which you can do easily in a matter of weeks.


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

Best of luck to you, I hope this info helps you figure your credit situation out!

Answer 2

For Credit and finance solutions I always visit this site where you can find all the solutions. http://personalfinancesolution.info/index.html?src=nQW84WImcqr

RE :Credit score of 515 can i buy a house next year?
I am working on raising my credit score i know it is bad and i have many things on my report that look horrible some very old 5 years or more i am working on the small stuff first if i don't get all my old debts paid by june of next year when i want to apply for a loan can i still be approved or not? how long would it take to fix it well enough to be offered a mortgage loan
Update: just so everyone knows i go into this with my eyes wide open. i already rent a3 bdrm house for $1000 so i know i could buy a house for less than that. most of my bad debt comes from at least two years ago. just trying to catch up now that my husband is done with school
Update 2: i also pay all heating elec. water and do alot of my own repairs because it would be the second coming before my landlord got to it.
1 following 10 answers

Answer 3

For a large purchase such as a house you should be in the mid to high 600s to get a reasonable interest rate. The best way to raise your credit rating is to get a credit card (it doesn't matter what the limit is) charge some stuff this month make the minimal payment next month and pay it off the month after that. That raises your score quick because it shows up as dept paid in full. It is as if you took out a loan and paid it off because the report doesn't show a dollar amount. But as for buying a house I would try to get your score up to high 6's low 7's. Just be carefull there are alot of lenders who will set you up with a loan that's not the best deal for you with a floating rate. Be care full and good luck with your house

Answer 4

Not likely, with a score of 515. Sorry.

Answer 5

The average FICO score is 725. That makes yours barely a D. There is no way you are going to be able to bring that score up enough by next June to qualify for a mortgage.

Go ahead and start cleaning up what you can. Some of the old stuff will fall off your report in 7 years and 180 days -- which means in another 2 to 3 years those negatives will be gone.

You can also work on establishing a consistent, on time payment history during the next 2 or 3 years. That will give you a decent score. Not to mention, the opportunity for you to save some money for a downpayment.

Answer 6

There are many home loans companies but before you go for one apply online and get free quotes and then compare and gop for the loan. With bad credit it may be a little difficult but you will get one. You can also try some credit repairing agency.
To know more you can visit
http://www.easyhomeloans.blogspot.com
and
http://www.creditcardbiz.blogspot.com

Answer 7

If you are having trouble making ends meet now, owning a home will make it worse. I don't know what you pay for rent now but does it include water, sewer, garbage, electricity, gas, cable, etc. Did your approximation of a house payment include property tax and insurance. If you don't have a down payment, did you include PMI. Also remember, when something breaks, can can't call the landlord to fix it; it will be you running to Home Depot. No offense, I'm just trying to open your eyes, unless there is a very compelling reason to own a house, please reevaluate your situation. Owning a house is expensive.

Answer 8

Sounds like you have a lot of work to do before you need to be worrying about a house.

Answer 9

That's wrong

Answer 10

There are hundreds if not thousands of websites on the internet enumerating the ways to apply and receive home loan when you are plagued with bad credit issues. These sites help consumers with bad credit scores to increase the viability of their existing credit scores and set up loans regardless of their credit history.Companies that specialize in bad credit home loans; usually offer a wide range of options for consumers with bad creditBad credit hasn't stopped them from purchasing a home. There are several programs available for people with bad credit that helps to restore their credit status and to live debt free lives.

Answer 11

I think it depends