How to fix bad credit
Q: I need to fix bad credit, and I need to do it very quick. My credit scores are 627, 609 and 603. I was late on 2 credit card payments for 30 days each time in the last 2 years, and I have a medical bill sent to collection agency for amount of $78. I want to buy a house and only have about $20,000 for a down payment. The price range I am looking at is $180,000. I also carry credit card balances of $3,000 and $1,800 for the last 6 months as the cards are interest free for another 6 months. The credit limits are $3,500 and $2,000 respectively.
A: You need to fix your credit, but the scores are not all that bad, and with the down payment you mentioned, I expect no problem in getting a mortgage. The rate will be in high 7s or low 8s, depending on the bank. As far as to fix bad credit, the only remedy I see is to speedily reduce the credit card balances to something like $1,200 and $900 and keep them that way. To pay them off completely is even better. The ratio between the balance and limit shouldn't exceed 35%. Once it gets over and stays that way, just like in your case, the credit score will decrease. See fix bad credit for more information.
Sun Jul 2, 2006 09:07PM | Copyright: www.bad-credit-advisor.com | More in Credit Repair Tips | Comments (0)
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