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  1. #1
    Join Date
    Sep 2007
    Posts
    2

    Default Low Credit Score Due To Late Mortgage Payments

    I currently have a 543 credit score due to late mortgage payments and a couple of credit cards that are maxed. I would like to sell my home. My question is, if I start making mortgage payments on time and pay my credit cards, how long thereafter would it take to get my credit score high enough to purchase another home?

    All payments have been paid in a timely manner, including an auto loan, except for my mortgage.

    I'm located in Az.
    Any help is greatly appreciated.

  2. #2
    Join Date
    Jul 2006
    Posts
    5,437

    Default Re: 543 Score Due to Late Mtg

    I think this generally takes from a year to seven years.

    But stand by for other opinions.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Low Credit Score Due To Late Mortgage Payments

    I agree - at least one year of no late payments or other financial "problems."

  4. #4
    Join Date
    Sep 2007
    Posts
    2

    Default Re: Low Credit Score Due To Late Mortgage Payments

    Would it be a good idea to sell now, or stay for a while?
    Which would be better for my credit score?

    Thanks for the response.

  5. #5
    Join Date
    Jan 2007
    Posts
    26

    Default Re: Low Credit Score Due To Late Mortgage Payments

    Paying down your debts (30% of your FICO) is about as important as on-time payments (35% of your FICO). By the time you pay down your credit cards enough time will have gone by that you will probably have the 620 score which is generally the cut-off for decent credit. Below 620 is considered sub-prime, and I'm sure you've heard about the subprime mortgage crisis so you'll now have an even harder time with a score under 620.

  6. #6
    Join Date
    Jul 2006
    Location
    Ohio
    Posts
    1,126

    Default Re: Low Credit Score Due To Late Mortgage Payments

    You'll have a hard time with credit under 700. In any case, the best thing would be for you to rent some place inexpensive, so that you can get caught up on your bills, and, maybe put money in the bank. Going forward, it will be difficult to get a new mortgage without excellent credit and a down payment.

  7. #7
    Join Date
    Oct 2007
    Posts
    29

    Default Re: Low Credit Score Due To Late Mortgage Payments

    I concur with Moburkes. Having spoken to a mortgage banker myself about the subprime mortgage crisis, I was informed that any score below 670 (new cutoff) any mortgage would be extremely difficult to obtain. Rent, save, and get your spending under control should be the goal for now. Good luck!

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