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Ten Things To Avoid In 4 Credit Score | 4 credit score

There are a lot of myths and misconceptions about having an 650 credit score. Some of them have absolutely no basis at all. Others are completely true. Let's take a look at some myths and misconceptions about how to raise your credit score.

Your score is not that important – False. While having a low score will keep you from getting many desirable loans and credit offers, it doesn't mean that you're not going to get those loans and offers. Having a 650 credit score will get you accepted for sure for personal loans, but other lenders will turn you down. In addition, you might be forced to pay higher interest rates for your unsecured personal loans.

I can get the best loan options with a 650 credit score – True. Yes, you will have to settle for less loan options, but most likely the money you save on interest rates will make up for it. If you really want the best loan options, your score should be higher than the one you have right now. However, there's no real way to tell how high your score will need to be before you can start getting better loan options.

I can still manage to get the best loan options with a 650 credit score – False. You cannot improve your credit history or debt ratio without changing your personal habits. That's why having the best loan options will depend on your current financial situation and not on your score.

I qualify for all of the no-income-earned-date loans – True. While having a low score will prevent you from getting as many no-income-earned-date loans and credit card offers, it's not impossible to qualify for all the same ones. You may qualify for a lower interest rate, or for a better interest rate and terms.

I don't owe more on my mortgage than I owe now – False. Your 650 credit score does not take into account your mortgage balance or current payments. It only looks at the amount you owe now, and adjusts your loan amount to reflect your payment history.

I can qualify for competitive mortgage interest rates – True. The only thing you should consider is whether mortgage interest rates have dropped since you were looking to refinance. There's no magic going on here; mortgage lenders just want to give you the best rates possible. Also, keep in mind that competitive mortgage interest rates are usually offered only to people who have good credit scores.

I don't owe enough on my revolving accounts – False. You must have enough available revolving accounts to qualify. Your current revolving accounts will be considered by the lender as one factor in determining your “guaranteed” level of borrowing. In other words, if you have bad credit, don't expect competitive mortgage interest rates on your new cards.

I have good credit – True. You can always use a no-fax auto loan to qualify for a home loan, provided your no-fax record isn't bad. If your FICO is above 600, however, most lenders won't help you finance an auto loan with anything but a home loan.

I don't want to qualify for competitive interest rates – True. The interest rates you qualify for will depend on your current credit mix, your lenders' policy for calculating risk, and their own internal underwriting policies. You won't be able to change your credit mix in order to qualify for very low interest rates, because these types of loans are determined on the basis of hard inquiries.

I need a loan, but bad credit makes qualifying impossible – False. You can certainly qualify for a competitive loan, even if you have poor credit. In fact, you can get approved for two of these, one based on your no-fax score and one based on the type of credit cards you already have. If you have good credit, it's easy to get approved for one of these two. If you have poor credit, you'll probably have to settle for a no-fax car loan, which can still be pretty competitive.

I have good credit history and bad credit – True. It may be that your no-fax history is actually good, even though your credit utilization is horrible. In that case, you can use a revolving account to apply for a car loan and have pretty good luck. You'll want to make sure that you're always making your payments on time, though, since that's one of the factors used by the lender to determine your risk.

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