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.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
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Common misspellings: mortage and morgage