No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I was interested in getting a home equity loan for two reasons - pay off debt and do a room addition. I previously tried to refinance and take cash out but was told my score was too low. I didn't know that mortgage scores were different from the regular FICO scores. My FICO is in the 650 range, but they told me my mortgage score was in the 590s and that I needed to be at least 620.
Are there any lenders that have a more "generous" approval process? Will they consider the debt that will be paid off to reduce my DTI ratio? I have more than enough equity to cover the loan and have plenty left over after that. You would think that alone would be enough since if I defaulted, they would have quite a bit of money in this house.
Any lenders you can recommend?
J-ville is on the money here......
Find out what's wrong within your credit profile and make those changes and get your deal done in a couple months.
Any liabilities paid off with a HELOC or cash out refi would be excluded from your DTI.
Thanks for the replies. I will do that. There is nothing urgent that I'm doing this for.
So my mix of debt is credit cards, auto loan (paid off in December) and personal loan. Does paying off/down any of these help my score more than the others?
Surprisingly, only one 30 day late about a year ago. No charge offs or collections. I am barely able to keep up with my payments, but work a lot of hours to do so. My CC debit is about $50k (limit probably 60k), car loan about 4k left, and loan about $30k
IMO, the late payment about a year ago is likely the biggest culprit (and factor) in your score being lower at this time.
However, your utilization ratios being > 80% is another factor that will restrict your scores from reaching their greatest potential as that derogatory event begins to fade. The closer that "late date" gets to being > 12 months and > 24 months old, the easier it will be for your score to rise, but if it takes waiting for your auto loan to be paid off in order to invest more money in paying down your credit cards then so be it.
Don't sweat it and don't lose focus, but you just may need a tad bit more time to get where you want to go. Don't be alarmed about missing out either because this low rate environment is here to stay as well.