Subject: Can I get an installment Loan with a 530 credit score?
Tue Jan 27, 2009 2:25 am
Husband is self employed, and we fell behind in bills last Jan-Feb '08. I began working in Feb. '08, and have been paying down credit card debt since. The balances were all over limit, but I have now gotten them to under the limit (not by much). The cards that are still open have all payments on time for 5-11 mos. 2 of my cards closed for behind 90 days (Dec '07, Jan & Feb), but I have continued to make those payments on time as well. The active accounts still show late payments from Jan. & Feb., but all else is paid as agreed. My latest FICO score from 12/08 is 530. Any way a bank would give me a loan for $1,500, to consolidate some debt, so I can improve credit score by reducing credit card debt, and making monthly payments to loan on time?
Joined: 27 Jun 2006 carol's page Posts: 1299 Location: Los Angeles, California
Even if you get a debt consolidation loan to pay off the existing debt, your credit score will improve only if the creditor agrees to pay for deletion agreement. If the creditor agrees for PFD in writing, then only after you pay off the debt, the late mark will be deleted from your credit report else it will only show as "paid" or "settled" in your credit report and will stay there as negative for seven years. Since your credit score is very low (530), it will take much time about a year or so to take it back to 600 levels. _________________ Keep in touch
Yes, paying off debts in full does not mean that your credit score will improve because the debts will remain as negative in your credit report even after you pay them off. The only difference will be that the nature of the debt will change to "paid as agreed" or "paid in full". However, a PFD agreement will help you to improve your score, but it is very difficult to make your creditor agree to pay for deletion. However, if the creditor agree to it, get the agreement in writing. 530 is not a good score and to improve it, you need to make timely repayments on your outstanding debts so as to improve your credit history. _________________ All the Best
Wed Jan 28, 2009 6:22 am
Review your credit report and verify that all the information and history is accurate. If not you can dispute it by contacting the bureau, either by mail, or online.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.