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Question By
ASills26

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I have the income to buy a home, But my credit score is keeping from that!
So tired of renting being trying to fix my credit for 5 years and it only goes up like 2 points a year.. Any options in Oklahoma that I could possibly do? We have the income but the scores just keep us from getting a loan :(

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be diligent!

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I'm not an expert, I'm still fixing my credit as well. I have seen dramatic improvements over the last 4-6 months though. I think that for starters it's really important to pull your credit report from all 3 bureu's. Only then will you see an extensive and detailed list of what's negative and why. I discovered that when you have something in collections and you know that it's been there for at least 5 or more years but it's "original date" says its less than that, that your debt might have been sold to another creditor, therefore reopening it. It's ultra important to have a lengthy credit history. so the shorter the time on anything closed, open, delinquent whatever, versus how much you owe, the worse your credit might get. I've recently also opened a secured credit card. It's made a huge difference in my score too, in a positive way. As long as you use it and keep your balance less that 25-30% of your over all limit, that will add nothing but good points. This means, don't set your limit very high, and make sure you pay off your balances as soon as you can. For example I only use my credit card when I need to get gas or a few groceries. My limit is only 250$ I could add more if I wished, but I dont find it necessary. So I only spend what I know I can cover with my checking account. Get food, use credit card, go home, pay your balance off, done. And after a few months of this, watch your score climb! I hope ths helps, good luck! And I hope you get the house of your dreams!

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Get aggressive!

A 620 score or better will qualify you for a lot of different loans, including FHA loans. Credit scores change for a huge variety of reasons, but the biggest ones are things like payment history (write goodwill letters to get occasional 30-day late payments removed!!), length of credit (don't open any more new accounts!!), credit utilization (keep the percent of credit used at any given point under 20%!!), and number of inquiries (don't apply for anything that will "hard pull" your credit score until you're sure it's high enough to qualify for a mortgage!!). Use Credit Karma's score simulator to see what effect your changes will have on your score!

Reply by
jefferyr1973

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This is not the case.  I have a score of 638 and was told that FHA now requires a minimum of 640.

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Trying Also

I have been trying to do the same exact thing for the last 3 years.  Currently in a Land Conctract for a home and trying to get an FHA Loan, but need to have a minimum score of 640 to get it, right now I am in the low 600's.  Seems like everything I do from buying a different car to obtaining another credit card seems to defeat me, rather than help things.  Hope someone out there has some ideas.

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