Posted on June - 28 - 2010
More Credit Score Help At The Credit Advice Center
Guess which question is heard most often around the water cooler at the Credit Advice Center.
“How do I improve my credit score?”
This question pops up frequently because the Credit Advice Center is becoming a real community forum for discussions around the topic of credit, especially the mystery surrounding credit scores. So, we will be bringing you even more credit score and credit advice posts here at the blog, so stay tuned…
In the meanwhile, consumers at the Credit Advice Center are helping each other navigate these tricky financial issues. Check out the conversations buzzing at the Credit Advice Center right now:
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Credit Reports
Q:How long does it take for credit bureaus to update with changes made to my report?
Your Answers:
- It depends on the lender and how often they report updated consumer accounts to the credit bureaus. Some larger banks and creditors report every month while smaller financiers report on a quarterly basis.
- Credit Karma scores are updated in real time. Please note that you have to manually click the “update score” bottom…
Q: How do I challenge items listed on my credit report, and will this help my credit score?
Your Answers:
- If you are challenging items erroneously listed on your credit report, make sure to dispute the items in question to all three credit bureaus. Clearing up mistakes on credit reports typically boosts credit scores anywhere from 5 to 50 points… Here are a few helpful links and articles…
Q: I was a victim of identity theft. Now that these items have been disputed and deleted off of my report, my credit score is really low. I want to apply for a credit card to repair my score. What advice do you have for me?
Your Answers:
- With a score that low, chances are you will be declined for virtually every unsecured credit card. Your best bet will be a secured credit card from Public Savings Bank. On your credit report it looks like a regular credit card. The pro is that there is no credit check. The con is that you will need to pay a $200 refundable deposit and an application fee.
- I was a student coming out of bankruptcy – but this was a different time in the economy when banks lent more freely… Check ALL THREE REPORTS to be sure that the items that were supposed to be removed were removed. And make sure there is NOTHING left that shouldn’t be there – be thorough!
Loans & Mortgages
Q: I am having trouble finding a bank to finance a vehicle for me. I have poor credit. Any suggestions?
Your Answers:
- Unless you have a large down payment, you can probably rule it out. Most of the sub-prime lenders went out of business during the recession.
- Sometimes finding a co-signer won’t even work… I recently applied for a car loan with a co-signer and no bank would come within 10 feet of me, not even with a co-signer with perfect credit. The only way is to have a huge deposit…
- Down payment is the key. Secondary banks like to see at least 20% down on auto loans.
Q:What credit score do I need to qualify for a mortgage?
Your Answers:
- In order to qualify for the best rates, the baseline minimum score is 720. However, the mortgage underwriting process takes into account several factors including income, outstanding debt, and amount of liquid assets (think savings accounts and 401K) as well as your credit score.
- There is a rumor that FHA loans will require either 660 or 670 here in the near future to even qualify.
- Well I just bought a home and I actually only had a 610 score. But like this article says, they do take in other factors like my work history; I have been with my job for 8 years and I am only 26 so that looks really good.
Q: What will a second student loan do to my credit?
Your Answers:
- As long as you pay on time, this will probably help your credit. More debt in general is a bad thing, so I’d never encourage you to take out loans you don’t need, but if you need them then I wouldn’t worry about the impact to your score.
- When I was a student, I opened several loans – typically one each year to cover the cost of books, tuition, and fees. The agreement on most student loans is that increase does not accrue… In the short term, adding a second student loan will not hurt your credit score, but once you graduate you will have to start making payments on both. Being late or failing to make payments can hurt your credit score…
- I thought it would make like a drop on your credit score if you had a high balance of student loans. So I’ll just make sure I pay it off on time once I finish school.
- High balances on student loans do not affect as bad as a personal loan, they are looked at differently…
Submit a question now or offer some answers at the Credit Advice Center!
Similar Posts:
- This Week’s Top Credit Questions
- 4 Minutes To A Healthier Credit Score
- Excellent Credit Score
- Consolidating Private Student Loans
- What’s the Deal with Debt and Your Credit Score?
