Credit Score of 569: Home Loans, Auto Loans & More

credit score of 569

A credit score of 569 indicates that you’ve got some work ahead. Nothing’s impossible, but it’s also not easy. At this level, the best thing you can do is focus on raising that number.

If you’re going to apply for loans, make sure the monthly payments are reasonable. Check the interest rate too, as those can become astronomical at your score. Pay your bills on time and avoid getting in over your head with credit lines.

With that pattern, you’ll be able to raise your score by 100 points or more. However, you’ve got to start somewhere. By the end of this article, you’ll know exactly where.

Credit Score of 569: Credit Cards

Most credit card companies won’t take the risk on you with a credit score of 569. It’s unfortunate, but you must stay realistic about this.

That’s why you start with a secured credit card.

Once you start making steady payments, it establishes a good record. Over time, you build a reputation and become trustworthy in the eyes of creditors. Then you can graduate to a “real” credit card.

Don’t go crazy, though! Always balance your credit to debt ratio reasonably. If you don’t have the money to pay for it straight out, don’t put it on your card.

If not, you’ll be back at square one in no time!

Credit Score of 569: Auto Loans

Auto loans are a little easier. Just about anyone can qualify if you go to the right place. Unfortunately, it’s hard to find a reputable or reasonable creditor. Be careful because you may find yourself falling prey to a bad financial situation.

Low/no credit auto loans will lock you into interest rates as high as the principle. If you are desperate for a car, it really does put you into a bind. However, just a few months of credit building can put you in a better spot to qualify from a legitimate financer.

Try to shop around, especially if you’re desperate for a car and must get an auto loan with a credit score of 569. Make sure to avoid directly applying for too many loans, though, as this can hurt your score even more.

No matter what, only apply for a loan you can afford. It’ll keep your bank account and stress-levels at a comfortable level.

Credit Score of 569: Mortgages

Mortgages will be especially hard. If you do manage to get one, it may be a less established bank and/or a high interest amount. The principle on a house is higher than credit cards or auto loans. A high interest rate can ruin your financial life.

Look into FHA or Federal Housing Administration loans. They may be able to help. They accept low down payments and will sometimes take people with low credit scores.

If not, keep saving and building credit! Once you’re in a better place financially, traditional mortgages will be far easier to obtain.

Imagine the world of opportunities that will be open to you once your credit is good. Nice car? Check! Picket fence? Check. Live the dream!

If you want to be able to apply for loans, it’ll be hard work. That’s what we offer here at : strategic support. Our credit restoration experts can help you back on to your feet in no time.

Additional Articles:

Personality Types & Credit Scores: Is There a Link? (For you Myers-Briggs lovers)
How to Raise a 610 Credit Score: 4 Quick Tips
How To Improve Credit Score In 30 Days

What is a Good Credit Score to Buy a House?

What is a good credit score to buy a house?

People looking to buy property often have thousands of questions running through their mind. But one of the most common is, “What is a good credit score to buy a house?” That’s because the better your score, the lower your interest rates. So, the less you will pay in the long run.

There are many rating systems, but FICO is the one most often used by lenders. Your FICO score can range from 300 to 850. But what makes an excellent credit score and what is considered poor?

Let’s take a look at where you fall and what options are available to you when buying a house.

Excellent Credit Score

As a general rule, an excellent credit score is anything above 760. If you’re above that marker, congratulations, you can get the best financing terms available when borrowing money.

An excellent credit score will mean you will get the lowest interest rates around. In the long run, you could end up saving thousands of dollars on your mortgage repayments.

As the FICO website says if you are looking to buy a property with a $216,000, a 30-year fixed-rate mortgage you could be looking at an interest rate of 4.2%. That’s a monthly repayment of $1,057. But what if your score isn’t as high?

Good Credit Score

A good credit score is anything above 660. With this score, you should still be able to find a loan, but you will be paying a higher interest rate.

Taking our example from earlier, a score of 665 could secure an interest rate of 4.82%. That would make monthly payments of $1,135.

It’s worth trying to improve your numbers before you start your applications. You can improve your credit score in a number of ways. Here are two options:

Removing a recent late payment. The most effective method is to call the creditor and request a goodwill adjustment. If that fails, you could negotiate the removal by signing up for automatic payments.

Removing a collection account. Paying your collection account probably won’t improve your score. Instead, try to negotiate with the servicer for a “pay to delete” — and remember to get it in writing.

Poor Credit Score

A poor credit score is anything 619 and below. For most mortgages, you will need a 620 credit score or higher. However, there are loans available for anything down to 570.

A FICO score of 625, using the same example as before, would secure a 5.79% interest rate. That’s a monthly repayment of $1,266.

It’s extremely important to raise your score to secure a reasonable rate. One of the best ways to do this is to speak to credit restoration experts.

There is no single path to restoring your credit score. By speaking to the experts they will find the best program for you.

today and receive a free in-depth credit consultation. It’s the first step to improving your credit score and securing the home of your dreams.

How To Lower Mortgage Payments With Bad Credit

how to lower mortgage payments with bad credit

If you’re in financial trouble you may be wondering how to lower mortgage payments with bad credit. Unfortunately, there’s not a one-size-fits-all answer — but help is out there.

The agency that owns or insures your mortgage will determine how you go about solving your issues. Before you can fix your financial troubles, find out which mortgage you have.

Fortunately there are only a few options available: Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the U.S. Department of Agriculture’s Rural Housing Service (RHS).

Let’s take a look at some of the options available to you…

Related: 4 Out-of-Box Ways Homeowners Can Build Good Credit

Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac have a similar process for loss mitigation. When asking for help under a Fannie or Freddie, your provider will review a set of options in a certain order. If you don’t qualify for the first, the servicer will move on to the second until they find some relief.

Both require you to complete and submit a Form 710  — Mortgage Assistance Application. You should say you are in trouble due to a loss of income or increase in costs.

A servicer may deem your financial difficulties to be temporary, given after a short-term drop in income or a one-off expense.

The servicer could also offer a long-term solution, if your financial issues are more permanent, such as disability or the death of a spouse.

VA Loan

The VA is expected to run through all its options before forcing the sale of a property. There are plenty available to you including:

Repayment plan. This is a written agreement in which you pay the normal amount and extra to cover the debt.

Special forbearance. With this option, the servicer agrees in writing to suspend payments or accept reduced payments. You can then negotiate a repayment option.

Modifications. This allows the servicer to change the loan without consent from the agency. Ultimately, this could lead to a longer pay-off period with lower mortgage payments.

FHA-Insured Mortgages

It may be possible to reduce your monthly loan payment thanks to FHA-HAMP, the Home Affordable Modification Program. However some borrowers are not eligible for that option.

Instead a repayment plan or forbearance agreement may be the options available. These do not change the terms of your loan but could help you pay off your debts.

RHS Guaranteed Loan Program

To reduce your payments on a Rural Housing Service Loan Program you have a few options available including:

Special forbearance. You can agree with the servicer to temporarily reduce or pause payments. You will then have a repayment plan put in place.

To be accepted for this you must have had a loss of income or increase in expenses and your payment has to be 30 days in arrears.

Modification. It is possible to permanently change your loan terms with a modification. There are two types available: a standard modification or a special loan servicing modification.

Speak to the people who know how to lower mortgage payments with bad credit. for expert advice and your full range of options.

Can Paying Off Collections Raise Your Credit Score?

Can paying off collections raise your credit score

“Can paying off collections raise your credit score?” It’s a question many people in financial trouble ask. And, unfortunately, the answer is not a simple one.

Paying off collections could boost your credit score, but only under certain circumstances. In today’s article, we’re going to look at your various options. You’ll learn the negative impact of collection accounts, as well as what to do if you find yourself in this unfortunate circumstance.

The Negative Impact of Collection Accounts

Collection accounts lower your credit score and tell lenders you have been unable to manage your finances. This could make it difficult for you to secure credit in the future.

The amount of the collection debt is irrelevant. If the debt is above $1, it impacts your score no matter how much you owe. A debt of $300 will lower your score by the same number of points as a debt of $100,000.

What Happens When You Pay the Debt

When you pay the debt, the collection isn’t removed from your account straight away. It will fall from your report seven years from the date of your first missed payment.

Even if you pay the debt, it is unlikely to result in a major boost to your credit score. However, the collection agency or creditor will update your information to show you have paid. Any future lenders will see that you dealt with the debt and may look favorably upon it.

Make an Arrangement With the Collector

Even though 95% of the time, paying off your debt won’t boost your credit score, there’s a way it could. When contacting the collector to settle, try to agree to a “payment for deletion”.

Remember to get the agreement in writing. If you want more advice on how to do this, today and speak to an expert.

File a Dispute With the Credit Reporting Agency

Do you think the collection account is a mistake? If you believe it’s inaccurate information, dispute it with a credit reporting agency.

It will then have 30 days to confirm the information they have is correct. If the record is wrong, then the entry could be corrected or (even better) removed.

Work With Credit Restoration Experts

You may be struggling with your financial situation, but Go Clean Credit has the answers.

So, can paying off collections raise your credit score? Yes, we have many credit repair programs available which will get you back on the path to financial success. There’s no one-size-fits-all answer, which is why we find the right program for you.

Each program starts with a free in-depth consultation from one of our expert advisors. From this, you will know the exact path to take for a better credit score.

Check out our different credit repair programs now or for more advice. Better finances and an improved credit score are just a few clicks away.

Credit Score of 567: Loans, Improvement Tips & More

You got a bit of financial work to do if you have a credit score of 567. In fact, I hate to break it to you, but most people are going to classify this as a bad score. Only 1 in 10 credit applications are accepted for people below a credit score of 580, and that can make things a bit difficult.

Improving your credit score is the best option, but it’s not always the fastest solution. It’s hard to operate without access to credit, so what can you do? In today’s post, we’re going to answer the questions you might have about having a credit score of 567.

1. Home Loans

First-time home buyers with a score of 567 are going to have a hard time. Most places will outright reject your application if it’s under 620, so you can imagine the difficulty.

However, difficult doesn’t mean impossible. Unfortunately, if you do find a place willing to accept your score, you’re going to deal with high interest rates. Buying a home with poor credit may put you in a direr financial situation then you’re already in, and it’s important to make a sound decision.

More often than not, it’s best to start by increasing your score. Just a 60 point increase can put you in a much better position for buying a home.

2. Auto Loans

You’ll find that rejection rates for auto loans are similar to that of home loans. However, it’s much easier to find an alternative to buying a car. Though, here again, you’re going to run into astronomical interest rates.

Using the average $27,000 dollars for a car loan and a 60-month loan, a score of 567 could land you an average APR of upwards of 16% and an interest over life of loan of nearly $12,000 extra dollars!

Unfortunately, it’s also important to improve your score because the low-credit financing industry has many predators. You should trust the people to whom you owe money, and increasing your credit score is one way to access these types of reputable companies.

3. Credit Cards

The credit card is probably the easiest to access a line of credit with a low score. Just don’t expect luxurious benefits and a low APR. In fact, you’ll likely have to apply for a secured credit card until your score improves.

The simple act of opening a secured credit card can increase your score, and if you reliably pay it off month after month the score will continue to increase.

So What To Do?

To put yourself in a more secure position, Focus your efforts on improving your credit score of 567. It needs to increase before making any big financial commitments. If you find yourself needing access to a credit line, start with a secured credit card.

If you need help getting your credit back on track, we’re here to help. The Go Clean Credit team will help you get your score cleaned up and on the right trajectory.

How Do You Get a Car Back After Repossession?

how do you get a car back after repossession

Having your car repossessed can honestly feel like the end of the world. Most of us rely on it for everything from getting to work to taking the kids to school. But don’t panic. There are steps you can take in a bid to get it back. So, how do you get a car back after repossession?

Step 1: Talk to the creditor

If your car has been claimed by the creditor then you may be able to negotiate to get it back. Do some research and find out whether you have any defenses related to the vehicle, the credit terms or repossession. If you do, you could find yourself in a very strong negotiating position.

Similarly, if the car is not worth much on the market then the creditor might no receive much for it. The creditor will probably negotiate an agreement with you.

Step 2: Can you reinstate?

A number of states allow consumers to reinstate the contract under certain circumstances. This will mean you will be able to reclaim the car and only pay the back-due payments. This is preferable because you won’t have to fork out the whole debt.

Be careful, however. There may be extra costs including storage charges and you may have to hand out an advanced payment or two. In most states in which reinstatement is allowed, you will only have a few weeks to claim your car — so make sure to act quickly.

Step 3: Pay the full debt

If reinstatement isn’t available in your state — or perhaps you have enough spare money going — you can redeem the car by paying off the full remaining amount and expenses. However, you will need to do this before the creditor sells your car. Because once it’s gone, it is gone.

Legally the creditor must tell you the date they intend to sell the vehicle and has to provide you with a telephone number where you can find out the cost of redeeming the car.

This option should be considered very carefully. If you have struggled to keep up with the monthly payments, it is likely that you may not be able to pay the full debt at once. Do not consider taking out expensive loans in a bid to keep the vehicle as this is a quick way to collect even more debt.

Step 4: File for bankruptcy

If you choose to file for bankruptcy then you will be able to reclaim your car — as long as the creditor has not sold it yet.

There are two options if you do want to take this route: chapter 7 or chapter 13 bankruptcy.

With the chapter 7 option, you will need to pay either the full remaining balance on the car or the vehicle’s value (whichever is less).

With the chapter 13 option, it is possible to set up a plan to pay off the car loan in monthly installments, up to as long as five years.

Step 5: Talk to your attorney

Our final option is to talk to your attorney. If you believe that your vehicle was wrongly taken then you could file a lawsuit to get the car back and receive damages.

If your car is repossessed it can feel like the end of the world. These steps on how do you get a car back after repossession will allow you to take back control. If you feel anxious or insecure about your ability to get your car back after a repossession, today!

Related:

Personality Types & Credit Scores: Is There a Link?

Are Personality Types & Credit Scores Linked?

It’s an interesting question that we received. Is there a link between personality types and credit scores? Can a personality type predict whether you’ll have good or bad credit?

We don’t know. We’re not Myers Briggs. We’re just a credit repair company.

But, our curiosity did take us to the internet, where we found several discussion threads and resources.

The consensus from our research? There probably isn’t a strong enough link to draw a logical conclusion.

However, there are some resources worth checking out on whether personality types and credit scores are linked. Here they are.

Discussion Threads

Quora: Is there a correlation between Myers-Briggs personality types and Credit Score?

Best Answer: Aside from pretty much the same question being asked on reddit Which type has the highest/lowest credit score? • r/mbti I could not find any other information, but I assume that it should mainly be a question of whether you’re a J or P type since J types are much better with money and credit cards than P types in general, and should have better credit scores. Though, according to one of the answers on reddit, INTP’s are on both extremes of high and low so maybe there isn’t too strong of a correlation.

Reddit: Which type has the highest/lowest credit score?

Best Answer: Highest: ISTJ Lowest: ESFP

Articles

Psych Central: Are Credit Scores and Personality Linked?

Summary: An emerging trend is for companies to use credit reports as an employment screening tool. New research suggests that using a summary of your credit report — your credit score — to screen potential employees is not supported by the evidence.

What do you think? Are personality types and credit scores linked? Tell us by contacting us through our site, or following us on social media to tell us more!

Tips On How To Keep Your Car From Repossession & How to Avoid the Repo Man

tips on how to keep your car from repossession

Repossession is scary, and finding accurate information isn’t always the easiest. In today’s article, we are going to reference and paraphrase some of the tips on how to keep your car from repossession in the NCL Consumer Debt advice series. By the end of today’s article, we hope that you feel more equipped to handle this not-so-fun situation.

How Repossession Happens

When you buy a car on credit, you almost always end up putting the car up as collateral for the loan. From time to time, a consumer will also use their car as the collateral for an unrelated small loan. These are called auto pawn loans or high-cost auto title loans.

If you get behind on payments or violate the terms of your agreement, you put yourself at risk of repossession. Even one or two missed car payments can put you in serious danger.

If this applies to you, keep reading. Here are some tips on how to keep your car from repossession.

1. Keep Your Payments Current

Your car payments should be a priority over other monthly bills. When deciding between, credit card debts, electrical bills or your car payment, remember what you have to lose. If you miss only a few payments for your car, you are at risk.

2. Keep the Damage Insurance Current Too

If you miss your insurance payments your creditor might replace your insurance with a much more expensive option. This will increase your monthly car payments.

3. Figure Out What Add-Ons You Don’t Need and Cancel Them

When you first purchased your car, you may have added unneeded insurance products. Some of them are worth paying for, but it’s unlikely you need them all. Find the add-ons that are unnecessary and cancel them with your insurance dealer.

4. Do a Bit Of Negotiation With the Creditor

Your creditor might allow you to postpone your payment. Try to make an agreement. If you succeed, make sure you have it in writing to avoid any disputes.

5. Figure Out If You Can Cure the Default

Some states grant their citizens a right to a cure. In other words, you may be able to pay for your late payments before repossession. If you do get a second chance, make sure you pay the late payments before the due date.

6. If all else fails, sell the car.

Sometimes you might be out of options, and the only thing you can do is sell your car. This option is better than repossession because you’ll be able to sell your car at a higher price. You also avoid a number of additional fees.

We know that facing a potential repossession feels scary. You may not know what to do and may feel ill-equipped to negotiate your way out of the situation. These tips on how to keep your car from repossession will allow you to breath easy. However, if you feel anxious or insecure about your ability to keep your car from repossession and avoid the Repo Man, today!

Related:

The Link Between Credit Score and Car Insurance

What Happens To Your Credit When You Break A Car Lease?

My Car Was Repossessed: What Are My Rights Against The Creditor?

my car was repossessed

If your car has just been repossessed the first thing you should be asking yourself is, ‘What are my rights against the creditor?’

Exploring the rules is undoubtedly the best way forward. It will give you the best chance of saving the most amount of money and potentially get your vehicle back.

But what are your rights? Here we take you through six you should know about.

1. Save your personal items

With your car taken by the creditors, you will certainly not want to be losing out financially with lost cell phones or anything similar. It is against the law for creditors to keep your personal property after it has been repossessed. Make sure to demand your items back as soon as possible, both by phone and in writing. Make sure to do that as quickly as possible before it is “misplaced”.

2. Reinstate the contract

Many states allow consumers to reinstate the contract under certain circumstances. Reinstatement will mean you get the vehicle back by paying the back-due payments (not the full debt). However, do watch out for extra costs you might have to pay such as storage charges. Speed is essential on this one. In most of the states that allow reinstatement, you have just a few weeks after repossession to take this option.

3. Redeem the vehicle

You can reclaim your vehicle from creditors if you redeem it — paying off the full amount owed plus expenses. Under the law, the creditor must tell you the date of the car’s sale and give you a telephone number. Like reinstatement, you should find out the cost of the vehicle as soon as possible and act fast. Once the car is sold to someone else, it belongs to them.

4. Haggle with the creditor

You have every right to negotiate with the creditor in an attempt to get your car back. You might be able to get your car back quickly if your car has little value on the market.

5. File for bankruptcy

Once your car has been repossessed you do have the option of getting it returned to you by filing for bankruptcy. However, you will need to this before the creditor sells it, so time is of the essence.

You will need to make payment arrangements under either chapter 7 or 13 bankruptcy if you want to keep the car long term.

If you take the chapter 7 option, you have to pay the creditor either the full remaining balance of the debt or the car’s value — whichever is less. This will need to be paid in installments or all at once depending on your creditor.

If you take chapter 13 bankruptcy then there are several options available to you. However, we think the best way forward is to pay off the car loan in monthly installments.

These payments can be lower than your car loan payments and could help you out of financial difficulties.

6. Take legal action

If you feel like your car was taken illegally by the creditors then you can file a lawsuit to get the car returned and claim damages. However, you will need to hire an attorney, which could be expensive.

Don’t panic if your car is repossessed by creditors. These six steps will put you on the right path to reclaiming your vehicle.  so we can dive into your specific situation and begin planning a way to help you escape this frustration.

Credit Score of 588: What You Need to Know

Credit Score of 588: What You Need to Know

So, you’ve got a credit score of 588. Now you’re left wondering if it’s good or bad. Lower numbers communicate to lenders that you’re a risky investment. This informs whether or not they approve you for loans or credit cards.

If your score falls below 619, FICO says you have “poor” credit. You’ll receive high-interest rates if approved at all. The best option? Understand the situation and work to improve it.

Credit Score of 588: Home Loans

Is it possible?

PROBABLY NOT — You need a credit score above 620 to secure a reasonable mortgage.

If you have a credit score of 588, you likely won’t get approved by most lenders. On the chance you do, expect to pay interest rates as high as 5-6%. Loans through the FHA (Federal Housing Administration) are your best bet, but it’s still a long shot.

Credit Score of 588: Car Loans

Is it possible?

YES — You can definitely buy a car with this score, but you’re going to pay for it.

Lenders may approve your application, but it’ll be accompanied by a high-interest rate. Honestly, it’s a good idea to wait on these loans and focus on raising your score.

Just 70 points make a huge difference…

In 2018, the average amount borrowed for an auto loan is $31,099. However, that number is just one half of the equation. To give you a better idea of how a high-interest rate affects you, let’s look at an example.

Below, you’ll see the 3 most common auto loans: 60-month, 48-month, and 36-month. For each type, there’s a comparison between someone with a credit score of 588 and 648.

Loan Type Credit Score Annual Rate Monthly Payment Total Added Cost
36-month new auto 588 15.867% $1,091 $2,986
648 10.334% $1,008
48-month new auto 588 15.865% $879 $4,080
648 10.364% $794
60-month new auto 588 15.938% $755 $5,266
648 10.438% $667

Credit Score of 588: Credit Cards

What’s the best credit card for a score of 588?

OPTIONS ARE OUT THERE — It’s difficult to get approved with a low score, but possible.

At 588, credit card companies see that you’re just shy of an average score. For this reason, you may be able to qualify for both secure AND unsecured cards.

Here are a few recommendations:

Card Name Annual Rate Annual Fee Secured/Unsecured
Credit One Bank Visa 17.49% – 25.49% (Variable) $99 Unsecured
Milestone Gold Mastercard 23.90% $35-$99 Unsecured
Open Sky Secured Visa 18.64% (Variable) $35 Secured
Discover it® Secured Card 24.49% (Variable) $0 Secured

How To Improve A Credit Score of 588

Improving a credit score of 588 to something over 620 should become the main priority. Good credit makes so many things easier, and a bit of diligence will raise your score in no time.

For many, the process may feel overwhelming. Here are a few tips for getting started…

  1. Be smart when shopping for a loan. Don’t apply for several loans or credit card in a row, as this can hurt your score. Also, avoid getting in over your head with how much you owe.
  2. Payback your credit on time. Lenders like knowing that they’re going to get their money on-time, every time. If you show your ability to pay, the score will rise.
  3. Find someone to help you. If small improvements aren’t raising your score fast enough, consider getting some professional help from a credit repair company like Go Clean Credit.

You can do it!

Let the experts at Go Clean Credit help you increase your score by more than 200 points! Our credit repair programs put you back on the path to financial success.   Go Clean Credit today!