Mandie Mills, loan officer with Carolina Home Mortgage Group, says a person needs a minimum score of 580-620. Mills says lenders would have taken 550 in the past.
"In my opinion, lenders should have imposed restrictions earlier so we wouldn't have to feel this so hard," said Mills.
She's seen plenty of people come in her office in recent months scared of the crazy mortgages and being foreclosed upon. She says as long as you speak with a home loan specialist who understands the market, you'll be fine.
But remember: lenders aren't just looking at a credit score. They also take you're residential history into consideration, how long you've been in your home, how stable your income is and the likelihood that it will continue.
Mills says to keep your credit score stable or to raise it, limit the number of inquiries on your it.
"What they're going to do is temporarily hit your credit score, not by much, but it can add it," she says.
When it comes to financing a car, Mills says you have a 14-day grace period for lenders to check your credit score as many times as they like. The grace period is 45 days for a mortgage.
Adding more lines of credit can also lower your score according to Mills, who says until lenders can determine how likely you are to repay the debt, they have to be leery.
Another thing to do to keep it up pay the minimum on your credit card, pay your bills on time and get a secured credit card at the bank.
Mills says your credit score is checked every six, twelve, 24 and 36 months. The longer you go between late payments, the easier it will be for your score to rebound.
10/13/2008 7:39:42 PM
