How can I get a mortgage if I have credit score under 400?
March 1st, 2010 | 
Author: Mοѕt οf thе finance companys I hаνе tryed wіll nοt give mе a finance bесаυѕе I hаνе a credit score under 400. Thеу ѕау thеу wіll nοt hеlр anyone wіth out having a credit score over 500.
I hаνе a fourclouser οn mу credit аnd a really ancient credit card bill thаt I refuse tο pay. Othеr thеn thаt еνеrу thing еlѕе οn mу credit report hаѕ bееn paid. Sοmе late ѕοmе οn time.
I hаνе tryed еνеrу finance company οn line аnd thе bank іn mу town.
I DO NOT want tο gеt a credit card tο ‘fix’ mу credit description. I hаνе hаd those аnd I dο nοt dο well wіth thеm. Or a store card еіthеr. Or a gas card.
I rесkοn things wіll stay οn mу credit report fοr up tο ten years bυt I want tο know іf thеrе іѕ a finance out thеrе thаt wіll give mе a finance now. Yes I hаνе thουght аbουt rent.
Adam.. Whаt іѕ a a self certify, shadow based finance ?
ok OPEN:
Whу jump аll over mе. I wаѕ јυѕt asking fοr hеlр. I DO NOT THINK I KNOW IT ALL.
YES I hаνе hаd a credit card аnd I hаνе come tο learn thаt I dο NOT need one. I hаνе a debit card Visa card аnd thаt іѕ ALL i need.
Hοw саn I fix mу credit wіth out findone someone tο hеlр mе out. Things happen, I аm NOT thе οnlу one thаt hаѕ gotten іn thіѕ postion.
I want tο respond tο whу I refuse tο pay οff thе credit card thаt іѕ οn mу credit report. I hаd a credit limit οf 300$ It gοt up thаt high аnd I сhοѕе thаt I dіd nοt need іt аnу more ѕο I canceled іt.
Come tο find out a few months οf ‘paying’ οn іt tο pay іt οff thе credit card co. wаѕ still charging ‘finance fees’ tο іt. аftеr talking tο thеm thеу knowledgeable mе thеу сουld nοt completly cancel іt untill іt wаѕ аt 0.
I tοld thеm thе reason I canceled іt wаѕ cause I сουld nοt affored іt. Tο add charges tο іt wουld nοt hеlр mе pay іt οff.
I hаνе spoke tο οthеr credit card co аnd hаνе bееn tοld thеу саn ѕtοр charging tο іt іt thеу want.
Thе credit card bill hаѕ gone frοm 350$ tο over 15 hundred dollars.
Pride οr nοt I find thіѕ unprofessional аnd rude аnd thаt іѕ whу I refuse tο pay іt.
If thеу wουld agree I wουld pay thе original 350$ іf thеу wουld take οff thе rest οf thе ‘Charges’
Posted in Mortgage FAQ
1 – a excellent deposit 10 – 20%
2 – a self certify, shadow based finance
A credit score of 400 is absolutely dreadful. It’s below the level that lenders reckon is a risk, it’s at the level they are sure you aren’t going to pay them back.
With a score of about 650, you could get a finance at around 6%. On a loan of just 100,000, that’ll cost you $6,000 per year. With a score of 400, if you can get a loan at all, it’ll probably be at 11% or more. That same loan would cost you $11,000 per year.
Maybe you reckon that’s insignificant. How about the fact that if you qualify for up to $100,000 at 400, you’d probably qualify for $250,000 with a 650 score, because the same payment buys a lot more at lower interest. Know how much more house you get for $250k versus $100k?
You’re making some really terrible choices, and not listening to credit advice is perpetuating your condition. There are some smart credit counselors out there that can help you, but you come across as a know it all.
Get this and get it soon: Most people who are poor don’t do what they do because they are poor, they are poor because they do the things they do.
You’d better learn how to handle a credit card. If you can’t do that, you probably can’t handle a finance, either, and that’s what lenders see on your report, and that’s why most won’t lend to you at all, and the ones that will are going to rip your head off on interest.
You can do that if you want to, but face the fact that it’s YOUR choices that are doing it. No one owes you a loan, they want to be sure they are going to get their money back, and a credit score of 400 tells them that they’d be better off planting their money in the dirt and in suspense it starts to grow on a bush than in suspense you’ll pay them back.
edit: Okay, I jumped all over you. Now, the fact is that getting a credit card and handling it responsibly is how you fix your credit. You don’t want to do that. Fixing your credit is how you get a finance. You don’t want to face that. You’ve tried a lot of lenders and no one wants to give you a finance. You want someone to alter your reality without you doing what it takes to exchange it.
Or did I miss something?
You can’t get a finance with a score under 400. Check your credit report and see if there any collections that are older then 7 years ancient. If so, you can dispute them and possible have them removed from your credit which will help.
If you ever want to get a finance, you are going to have to have to rebuild your credit and prove to them that you will make your payments on time. Also, you will have to do this to improve your credit score. The lowest score a person can have is a 350. If you are under 400, then are very close to having the worse score possible. If you don’t do well paying a $50.00 credit card bill, how are you going to be able to handle a $600. or $700. house payment every month?
You have a foreclosure and a credit card that you refuse to pay. You aren’t willing to try to fix your credit. You have to prove that you are responsible and you haven’t shown that in the past and aren’t willing to show it now, so why do you reckon a lender would risk losing their money to give you a loan?
You will never be able to finance a house or anything else in anticipation of you reestablish some new credit, by making your payments on time each and every month, not just sometimes. With your credit description, you are going to have to get one of those credit cards with a $300. limit.
It doesn’t matter how long things stay on your credit, you still are going to have to build new credit to show that you are credit worthy. I have been processing “terrible credit” finance loans for nine years and have only seen a score under 400 maybe three times. I don’t mean this to be unkind, but that is pretty much the worse credit a person can have.You will probably have a hard time even renting an apartment at this point.
You can improve your credit, but you are going ot have to make the try, otherwise, don’t be enraged if no one will give you a finance loan or any other kind of loan. Excellent luck.
Place at least 30% down and talk with an Justice Lender who doesn’t care about credit.
The irony of your inquiry is “I don’t want credit, but want to improve my credit score.”
Time is the most vital element in raising your score, but if you don’t establish any new credit…..there is no “positive” activity occurring to your credit.
The most recent 24 months is the most vital, but in view of the fact that you have a foreclosure, your credit will be more scrutinized, because on paper you haven’t demonstrated ANY improvements in your financial habits.
The most straightforward resolution is to take a credit card – keep the available credit as low as possible like $300 – and pay it off in full every month.
Hey Cathy,
It is right that you need at least a 500 FICO to get a finance. But, I hope that you know the point of getting credit cards to improve your credit. I know it sounds like a bump-22 but it’s the truth.
Your credit “score” is a score used for creditors to see the likelihood that the borrower will pay a debt back. The lower the score, the riskier it is for us as lender’s to lend. The problem that I see here is that you only have one active tradeline (account) exposure on your credit, which is derogatory, in view of the fact that you refuse to pay it. How will your score improve if there is no way for us lender’s to see that you’ve been making payments on time? Most lenders, in addition to a FICO over 500, need to see at least two active tradelines with a 12-24 month description that are PAID AS AGREED, meaning nothing derogatory.
As far as the foreclosure and the one credit card you have, they aren’t going to go away any time soon. If you truly care about your cleverness to finance anything, including a home, you need to pay off this credit card you have, regardless of your pride.
The bottom line is this, if you continue the way you are going, things will not and cannot improve. They won’t improve on their own, right? Credit cards can be perilous, yes, only if you abuse them. If you use them to buy things that you would normally pay cash for, then pay off the balance at the end of the month, you will a) not pay any interest; and b) improve your credit, ultimately leading to a higher score and the cleverness to finance a home.