Ive missed quite a few credit card payments about 7 total about 2 years ago and I am in the process of raising my credit score. So will I be considered sub prime for the entire 7 year period until those late payments no longer appear or will just raising my credit score bring me out of subprime.
2 years ago my credit score was 460 now its 639 I havent had late payments on anything since then. I just wanna buy a house in 2-3 years I would like to know when will i not be considered subprime. is it when my credit score reaches or certain number or what????
anyone with info on what sub prime really is I would appreciate it!
2007-10-26 06:52:49 · 2 answers · asked by nikkylyn 5 in Business & Finance ➔ Personal Finance
Sub-Prime is less than the best. Prime is tops in anything.
We eat a lot of sub-prime food these days.
The Fed Reserve determines the "prime rate" of interest, usually reserved for banks.
This is reflected in credit card rates, "Prime plus a %".
Your credit for the past seven years may have a bearing on your interest rate, but you should have no problem buying a home. Your present income and your new record for payment will be a positive for a morgtage.
2007-10-26 07:05:31 · answer #1 · answered by ed 7 · 0⤊ 0⤋
Subprime mortgage or subprime lending is the practice of making loans to borrowers who do not qualify for the best market interest rates because of their deficient credit history.
Sometimes even if you have a decent credit history you will still not be able to get a "normal" loan so you would have to get subprime. So it's not really the points but it is when the lenders with good rates feel they can lend you money, you don't need to rely on subprime.
Once you feel your credit history is getting better, try applying for a "normal" credit card or mortgage or whatever you are interested in.
I would also recommend talking to a financial advisor.
2007-10-26 14:05:02 · answer #2 · answered by mc 2 · 3⤊ 0⤋