Believe it or not The Champion Program is not very concerned about credit scoring. These days a computer model called FICO rates your credit scoring from a low of about 350 to a high of around 850. Anything above 680 is considered very good credit. The worst thing that you could have on your credit is a foreclosure. Most lenders want to see a 4-year clean history after a foreclosure. But there are plenty of “sub prime” lenders who will help you with a loan even if you’ve had a foreclosure within the last 4 years. Other major disasters include a Bankruptcy, late mortgage payments within the last twelve months, and tax liens.
If you’ve had bad credit within the last two years your goal should be to:
- a) Find a loan that will meet your goals over the next twenty-four months.
- b) Work towards improving your credit.
A new mortgage fixed for two or three years may be the answer. A 2/28 or 3/27 are very common loans that can give you a rate fixed for a short time, allowing you to consolidate debt, payoff liens and reduce the amount of creditors? FICO scoring is not only affected by late payments, but the number of balances on your report also affects it.
Consolidating multiple charge accounts down to one loan can help improve your score. The important thing to remember about a new mortgage if you’ve had credit problems is that the new loan is a step in the right direction, not the final solution. Sometimes borrowers will have to take one, two or maybe three steps to help improve their situation. Just because you’ve had bad credit doesn’t mean you should expect to pay through the roof. Loan costs can be built into a refinance loan, and sometimes increasing the interest rate a small amount can eliminate a lot of fees.
If you have collection accounts on your record you can sometimes pay them off and get them removed from your credit reporting. Once removed, your credit scoring will improve a lot. The Champion Product has many programs that can help you not only obtain the best loan for you today, but also help you plan ahead.
Some of our programs have no credit scoring systems as well.