Question:

What is a bad credit score?

Answer:

Banks and lenders know what is a bad credit score. If your FICO drops below 620, you are lenders' favorite. High rates and prepayment penalties are all the way.

A FICO varying between 620 - 650 means you are still being robbed but hardly as much as you would be with a bad credit loan.

Real bad credit score comes below 500. Do not try to obtain a regular loan before you get credit score repair help. Sometimes, the right credit score repair agency can do marvels to your score in several months. Do not expect to get the prime rates, though. Bad credit signifies very high risk to the lender - foreclosure or bankruptcy or both. It will take time to clear - 7 to 10 years.

With a bad credit score you may want to take a small loan and repay it diligently with the single purpose of establishing positive history. Still, do not take a mortgage right away.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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