Credit Check Facts

Question by RobEri: What are lenders looking for when it comes to, "Established Credit"?
My score is 650 with an income of 53,000. I've got 1 secured credit card opened under b of a and was considering opening another. I know I need established credit, but how much of it do I need? I want to apply for a loan but not sure if it'll hurt me in the near future. Def. want to buy by the end of this year and take advantage of the FHA 3.5 (hopefully it sticks).

Best answer:

Answer by Janice S
My son just qualified for a home loan without having too many accounts. The one thing we thought would be good was that he paid off his loans early, this we were told was more harm since they want to see continuous payments for 1-2 years. He had a personal loan with a term of 3 years he paid off in 6. They told us a morgage company they would like to see more long term. He did get to use his car insurance monthly payments and his electric bill payments as credit. He also had just one credit card that was only open for 3 months before the purchase.
Mortgage company just called the car ins, company and electric company to confirm he had never been late with payments and that was enough to get the mortgage loan. His score was over 750 though, but his income was much lower than yours.

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Question by SUVCURIOUS: Is there a general fico score "table" lenders use to decipher interest rates for auto loans/leases?
I've requested the credit bureaus to remove/fix parts of my credit report so that hopefully my fico will go up. I want to get my fico as high as i can before applying for a car loan/lease. I usually put less than10k miles on my vehicles per year. I own a 2001 toyota mr2 with less than 40k miles. I plan on selling it and putting the money down on a purchase if i don't qualify for a lease.

Best answer:

Answer by rob1963man
They have no "tables" per se. But, 720 Fico Score IS the magic number. If you're over that, you're going to get premium interest rates for ANY loan, not only auto loans.

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Question by SUVCURIOUS: Is there a general fico score "table" lenders use to decipher interest rates for auto loans/leases?
I've requested the credit bureaus to remove/fix parts of my credit report so that hopefully my fico will go up. I want to get my fico as high as i can before applying for a car loan/lease. I usually put less than10k miles on my vehicles per year. I own a 2001 toyota mr2 with less than 40k miles. I plan on selling it and putting the money down on a purchase if i don't qualify for a lease.

Best answer:

Answer by rob1963man
They have no "tables" per se. But, 720 Fico Score IS the magic number. If you're over that, you're going to get premium interest rates for ANY loan, not only auto loans.

.

What do you think? Answer below!

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