Your FICO score is a credit score used by lenders to determine how risky it is to loan you money. The lower your FICO score is, the harder it will be for you to get approved. This article offers information on how your FICO score affects you, as well as information on getting a home loan with poor credit.
Your FICO score is determined by your borrowing record. Things that affect your FICO score include the amount of time a credit account has been established, the amount of credit used vs. the amount of credit available, late payments, and negative credit information, such as bankruptcies, collection action, and bad debt write-offs. With just a few blemishes in your credit history, your FICO score can be seriously tarnished.
Raising Your FICO Score
There is no way to increase your FICO score overnight. Credit repair takes time and serious effort. However, if you need to raise your FICO score as fast as possible, the following tips will help:
· Pay your bills on time.
· Get your credit card balances below 30% of your credit limit.
· Pay off any old negatives that are on your credit report.
Getting a Home Loan with Poor Credit
If your FICO score is less than perfect, and you don't have time or the resources to correct matters immediately, all is not lost. In fact, getting a home loan with poor credit is becoming easier than ever. Many lenders will be willing to work around your credit history and get you the home loan you need to make your property purchase. If one lender tells you no, speak to other lenders until you get the approval that you are looking for.