What is the minimum credit score for VA loan approval?

This post will answer what is the minimum credit score for VA loan approval as well as some other basic information as to exactly what a Veterans Affairs mortgage is and who is eligible to apply for one.

War veterans have served us and our country and therefore the US Government has put in place special financing as a way to honor them and their sacrifices made.

Interest.com has a great article on the minimum credit score for VA loan approval so I pulled an excerpt and placed it below for your reference…

“VA loans are open to borrowers with below-average credit, require no mortgage insurance and the rates are as favorable as those given to people with stellar credit scores in non-VA loans.

Millions of veterans, including members of the National Guard and reserve units, are eligible. These home loans are also available to anyone on active duty and widows whose spouses’ deaths were war-related.

 

With a VA loan, the government covers the lender’s losses for up to 25% of the loan amount if you default. That gives the bank or mortgage company the same protection as if you had put 25% down on the home, so they can offer lower mortgage rates on a loan for which it’s easier to qualify.

Here are 5 ways you can benefit:

Benefit 1.You don’t need any money for a down payment.

This is the only major loan program we know of that still allows borrowers to finance 100% of a home’s purchase price.

Benefit 2.There is no monthly mortgage insurance premium.

Borrowers with less than 20% equity in their homes usually have to buy mortgage insurance that protects their lenders from default. The premiums typically boost their monthly payments by $100 to $200.

Instead of that, VA loans have a one-time funding fee that ranges from 0.5% to 3.3% of the loan, depending on the type of mortgage and whether the borrower made a down payment.

But you don’t need to pay the funding fee in cash. It can be rolled into the amount you’re borrowing.

The funding fee is also waived for most widows and vets with service-related disabilities.

Benefit 3.You can qualify despite damaged credit and more debt.

The government doesn’t set minimum income or credit score standards for VA loans. Each bank or mortgage company has its own requirements, and the government doesn’t guarantee any veteran can get a loan, nor does it force banks to lend to anyone.

However, lenders across the country say the minimum credit score to qualify for a VA loan is about 570. It’s almost impossible to qualify for any other mortgage with a subprime credit rating like that.

Even a recent bankruptcy doesn’t mean you aren’t eligible for a VA mortgage.

Most VA lenders require two years’ distance between the discharge of Chapter 7 bankruptcy and a mortgage application. If you filed for Chapter 13, you only have to wait one year. The lender, however, will want to see good credit re-established and a clean record of on-time payments since the discharge.

Benefit 4.The Department of Veterans Affairs won’t let you pay too much — or buy a substandard house.

The government assigns an appraiser that’s been trained and approved by the VA to inspect and value any home you want to buy. Because they are not paid by the bank or real estate agency, these appraisers can give you an unbiased appraisal.

“It’s the best and most accurate appraisal there is, period,” says John Parker, a VA loan specialist at Supreme Lending Mortgage Banker in Dallas.

If the inspector finds significant damage or structural problem with the house, the VA requires it to be fixed before closing.

Benefit 5.The interest rates are low.

Lenders typically charge what they would for a non-VA loan given to customers with good credit, and that’s usually the best rate the bank or mortgage company offers.

With non-VA loans, borrowers pay a higher rate for every 20 points their credit score drops below 720. But with a VA loan, borrowers get the same low rate, whether their credit score is 605 or 790.”

 

Minimum Credit Score for VA Loan – Is Your Credit Score Enough for a Veterans Affairs Mortgage?

If you are eligible and have the minimum credit score for VA loan approval you are now well aware of the many significant benefits the government has granted you for your service to our Country.

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What is the minimum credit score for auto loan approval?

What is the minimum credit score for auto loan approval?

A person’s credit score is one of the main determining factors whether one is accepted or rejected for their auto loan application.

The credit score will also directly influence the amount of down payment required, the interest rate placed on the loan and potentially the length of the car loan.

The following excerpt from CarsDirect.com outlines the minimum credit score for auto loan approval…

“The credit score essentially paints a financial picture of a person, and helps determine the likelihood of them paying back the loan that was given to them. With a good credit score, the world is basically one’s oyster.

However, with a bad credit score, a person can expect to have a little rougher time on their hands. A lender looks at the credit score and other documentation, then determines whether a person is a good candidate to lend to. The credit score is probably the most important of all the documentation presented.

The Optimal Range for an Auto Loan Credit Score
In many cases, to be successfully approved for an auto loan with optimal rates, a person would want their credit score to be in the 740 range. For those who do not have the luxury of having such a credit score, something in the high 600′s will work, but in most cases will warrant a high interest rate.

Those that offer auto loans will consider a rating of 620 or lower to be “subprime”. Therefore, a person looking for a decent auto loan should aim to have a credit score of 620 or higher.

Subprime borrowers can still finance a car purchase. Though, they will generally have to pay higher interest rates and may be required to come up with a substantially higher down payment. In addition, people that have subprime credit may be limited as to what kind of vehicle they are able to purchase. For subprime borrowers, banks or lenders place a particularly high priority on the actual value of the vehicle to be financed.”

 

Minimum Credit Score for Auto Loan – Will Your Credit Score Help Get a Good Car Loan?

Hopefully this article gave you the insights you were looking for regarding the minimum credit score for auto loan approval and other tidbits of information pertaining to new and used auto loans.

Regardless if your credit score is high or low you will need to know yours prior to initiating shopping for auto financing so click here to get your credit score now as your first step on your way to driving your new vehicle.

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What is the minimum credit score for mortgage approval? This is one of the more popular questions regarding credit scores.

Since a house is for most people the largest priced item they will purchase the mortgage approval process is a very significant part of the equation.

Not only is the question pertaining to the minimum credit score for mortgage approvalimportant but a person also needs to consider what interest rate they will be charged based on the strength of their credit score and the other factors lenders use to evaluate a mortgage application.

What is the minimum credit score for mortgage approval?

Back to the question at hand BankRate.com has a good article outlining the minimum credit score for mortgage approval and some other “good to know” facts.

Borrowers with high FICO scores — the top tier ranges between 760 and 850 — can expect lenders to offer them lower interest rates and more loan choices. Scores of 620 or lower usually place a borrower in the “subprime” category, and they can expect to be quoted significantly higher interest rates and may be offered fewer varieties of loans. A FICO score of about 500-520 is generally the minimum that will qualify for a mortgage.

 

Such variations in interest rate can add hundreds of dollars to your monthly payment and can make a big difference in the amount of debt for which you can be qualified.

 

While scores are important, they are not the only thing lenders take into consideration when approving a mortgage. And low scores aren’t insurmountable obstacles, says David Reed, an Austin, Texas-based mortgage broker and author of “Mortgage Confidential: What You Need to Know That Your Lender Won’t Tell You.” ”The FICO is one of the factors, not the only one.”

 

Bills.com also had some good data on the minimum credit score for mortgage approval topic I wanted to share…

“There is no simple answer to your question. Depending on the type of loan you are applying for, the FHA has some programs for people with credit scores as low as 580 but they are disappearing fast. Today, the minimum score for a home loan mortgage for Fannie Mae and Freddie Mac is 620. These numbers vary with market conditions.

 

A credit score is just one part of the equation. A mortgage lender wants three things from a potential customer: Steady income, a relatively clean recent credit history, and a debt-to-income ratio of 35% or less. Customers who qualify for a mortgage have all three of these qualities, plus a down-payment.”

 

Minimum Credit Score for Mortgage – Will Your Credit Score Get You Approved?

Now that we have the low down on he minimum credit score for mortgage approval the next question is…

Do you know what your credit score is?

If not click here now to get your free credit score

Once you know your credit score get as much ammunition together as possible for when you approach the lenders. The more you can show them you are in control of your finances and have a workable plan in place combined with the necessary hard facts they require the better the chance you will not only be approved but also be given the best interest rate possible based on your current financial situation.

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What is the minimum credit score for credit card approval?

This is a very popular question. Many young people looking to get their first credit card, mothers returning to the work force, people recovering from a financial setback are just some of the many Americans wanting to build up their credit, access credit and are therefore wondering… what is the minimum credit score for credit card approval?

According to the CreditCardForum the minimum credit score for credit card approval is…

“The minimum credit score needed for approval varies by

What is the minimum credit score for credit card approval?

card. Also that is not the only criteria used. For example, someone with a low credit score simply because they are new to credit will probably be looked at more favorably than someone with a low score due to credit mistakes they’ve made.

The minimum score requirement for a credit card can also change depending on the economy. During the financial crash years ago, card issuers became much more picky. Fortunately, things have now returned somewhat back to normal, but we will probably never again see the loosey-goosey credit availability experienced before the crash.

Here are some ballpark ranges to give you a better idea:

Reward Cards?
A score for credit cards in this category will usually have to be above-average. For example, I would estimate that those 5% cash back credit cards usually require a minimum credit score in the 700 to 750 range (however to get the best rates you may need higher than that). Therefore if you are brand new to credit or have a poor credit history, the best reward cards may be out of your league. That being said, there are plenty of 1% rebate cards that aren’t as picky.

For Fair Credit?
Although there is no official number, most consider a fair credit score to be in the range of 650 to 699. The average American often falls somewhere into this range, especially if they carry high balances, have had charged-off debt, or just a limited credit history. Many of these cards have fees and higher rates. Go here to find out more about credit cards for average credit.

For Bad Credit?
For credit cards with bad credit the minimum score can be anything as long as you are applying for a secured card (where you put up a security deposit). As you can imagine these do come with fees but if used correctly, they are an excellent way to rebuild your credit. To learn more check out our section about rebuilding credit using secured cards.”

Minimum Credit Score for Credit Card – Is Your Credit Score High Enough?

That article shed some good light on the subject.

So… is your credit score high enough?

Do you meet the minimum credit score for credit card approval?

If yes… thats great.

If not… then just look through this blog at the many posts offering countless tips and strategies to improve your credit score easily and quickly and before you know it your credit score will be providing you the numerous good credit score benefits shared by many.

If you know anyone who may be interested in knowing the minimum credit score for credit card approval please Like… Tweet or Share this article using the buttons below.

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How to cancel free credit report subscriptions.

I’m often asked how to cancel free credit report subscriptions so I thought I’d do a quick post on some of the more popular credit report services outlining the process.

Before I jump in it is important to know most online credit reporting websites will indeed give you a free credit report from all 3 credit report bureaus however most of them will ask you to sign up for a free trial period in order to do so.

The free credit report trial period can be anywhere from 7 – 45 days and will include various add-on benefits such as credit report monitoring, Identity Protection and a wide host of other services.

In order to get your free credit score and not pay ANYTHING it is imperative you cancel your subscription prior to the end of the agreed upon trial period or your credit card WILL be charged monthly fees until you do so… this is why it is important to understand how to cancel free credit report services.

How to Cancel Free Credit Report Subscriptions

• “How to Cancel Free Credit Report Subscriptions from Freecreditreport.com
  (Excerpt from Freecreditreport.com website) How do I cancel my membership?
  You may cancel at anytime; however, you will not be eligible for a refund for your membership fees. To cancel, please contact Customer Care at 1-877-481-6826.
• How to Cancel Free Credit Report Subscriptions from Experian.com
  (Excerpt from Experian.com website) How do I cancel my membership?
  You may cancel at anytime; however, you will not be eligible for a refund for your membership fees. To cancel, please contact Customer Care at 1-888-829-6560.
• How to Cancel Free Credit Report Subscriptions from TransUnion.com
  
  (Excerpt from Transunion.com website) How do I cancel my account?

  If you have a question regarding the purchase of a personal product and wish to contact a customer service representative, you may call 1-800-493-2392 between the hours of 8 am – 8 pm Eastern time.

  Note: Billing support for online products is not provided through the Consumer Support Request form.
• How to Cancel Free Credit Report Subscriptions from Equifax.com
  

  (Excerpt from Equifax.com website)

  What is your product cancellation policy?

  You may cancel your product(s) at any time.  If you purchased a subscription product that is billed monthly, the cancellation will occur at the end of your current billing cycle.

  For security reasons, you will need to contact our customer care team in order to cancel a product.  You can reach the team at 866-243-8181, 7 days a week between the hours of 8 am – 3 am EST.

  Once you’ve contacted our customer care team to cancel your product, you should  receive an email confirming your cancellation request.  You can also log into your Equifax Member Center and view your Order History which will reflect the order as “Cancelled.”
• How to Cancel Free Credit Report Subscriptions from Freecreditscore.com
  (Excerpt from Freecreditscore.com website) How do I cancel my membership?
  You may cancel at anytime; however, you will not be eligible for a refund for your membership fees. To cancel, please contact Customer Care at 1-877-300-2506.
• How to Cancel Free Credit Report Subscriptions from Freescore360.com
  (Excerpt from Freescore360.com website) How To Cancel Your Enrollment in Subscription ServicesYou may terminate your enrollment in Subscription Services at any time by calling us at the toll free number that appears on the applicable Site and on the emails that you receive from us. If for some reason you do not have access to a phone, you may terminate by writing us at 4447 North Central Expressway, Suite 110 PMB 406, Dallas, TX 75205, and requesting termination. You may not cancel via email to us. We do not provide prorated refunds.
• How to Cancel Free Credit Report Subscriptions from Myfico.com
  (Excerpt from Myfico.com website)You must cancel during the 10-day free trial period to avoid being charged. If our telephone lines are closed, you should send us an email before your free trial is over. To send us your cancel request via email, start  by clicking here and filling out the form. It is importanat to complete the form. You must press the “Submit” button to send us the email.You may call us at 1.800.319.4433. We are open 6:00 AM – 6:00 PM Pacific Time Monday through Friday; and from 7:00 AM until 4:00 PM Pacific Time on Saturdays.
• How to Cancel Free Credit Report Subscriptions from Trucredit.com
  (Excerpt from Trucredit.com website) You may call to cancel your membership at any time. PrivacyGuard 800-374-8273… Identity Guard 800-452-2541… Identity HQ 877-875-4347… TransUnion/TrueCredit 800-493-2392
  
• How to Cancel Free Credit Report Subscriptions from CreditKarma.com
  (Excerpt from CreditKarma.com website) How do I cancel my membership? To continue, just send us a message saying that you wish to deactivate. Click here to access form
• How to Cancel Free Credit Report Subscriptions from FreeScore.com
  (Excerpt from FreeScore.com website) How do I cancel my membership? You may cancel at anytime; however, you will not be eligible for a refund for your membership fees. To cancel, please contact Customer Care at 1-877-297-7793.”

Well I hope this info has helped you in your quest in learning how to cancel free credit report subscriptions.

If there are any other Companies you would like us to add to this list please leave a comment below or send us an email through our contact form and we will make sure its included.

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Will Your Credit Score Be Affected by the Global Payments Hack?

Will your credit score be affected by the Global Payments hack?

This is a great question.

In case you haven’t heard Global Payments, a third party credit card processing company, with clients such as financial institutions, Government agencies and large companies, stated on Friday that 1.5 million credit cards may have been exposed when they detected unauthorized access to their processing system.

Both Visa and MasterCard were included.

This leaves consumers with many questions such as:

• Will you be a victim in this hack?
• What do you do if you find unauthorized charges on your credit card bill?
• Will your credit score be affected by the Global Payments hack?
• Is your identity threatened if you were targeted?

“What should I be looking out for? As a cardholder, you should keep an even closer eye on your bank statements to look for unauthorized charges. Investigate and report any anomalies as quickly as possible.Also, be aware of phishing scams. Keep in mind that no reputable firm will ever ask you to enter your username and password into an e-mail, and any e-mails asking for that information should be deleted immediately.I think my account’s been compromised. What can I do? If you’re worried about charges you’ve found on your cards, contact your card company immediately. Cards often have a toll-free number printed on them in case of emergency.

You can also put a fraud alert on your credit report to contain the damage from bad charges.”

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Yet more good credit score benefits… YES they just keep coming.

This is the 4th or 5th post I’ve done in the past week on this topic and indeed there are yet more good credit score benefits I can tell you about.

Rich or poor… educated or not… everyone has challenges, troubles and stress in their life but many of us can leave some significant life obstacles behind forever by simply clamping down on their financial disciplines and building up their credit score to a higher level.

The perks for a credit score go far beyond lower interest rates and having an easier time getting credit. This post offering yet more good credit score benefits is in hopes they will give you the gentle “kick in the pants” needed for you to take the plunge and do the work required for you to also join the “club” handing out all these rewards.

Today I was able to find yet more good credit score benefits on the popular eHow.com website…

Employers look to your credit score as a hiring factor... yet another good credit score benefit

“Employment

• Many potential employers will pull your credit report when you apply for a job. By reviewing your credit history, they can see whether you are reliable in your agreements to pay your debts. In the eyes of an employer, if you are reliable with debt, you may demonstrate the same reliability on the job. If you are applying for a position in which you will be handling money, an employer will look at your credit history to determine whether you are carrying defaulted debts or are late on your payments to your creditors. Employees who are in need of extra money to pay debts are considered to be a theft risk and are much less likely to be hired. Your good credit history can be instrumental in helping you get the job you want.

Banking

• 

  Banks provides perks to those with higher credit score.

  Most banks will look at your credit history when you apply to open a checking account. A customer with a positive credit history is much less likely to incur fees. In the event that the customer does accrue fees, the bank feels secure that those fees will be paid promptly. A credit report that contains a history of defaulted debts shows a bank that the a person is irresponsible with money and a financial risk. When you apply to get financing through a bank or credit union, you are likely to be turned down if your credit history and credit score don’t meet the bank’s standards. Keeping a good credit history ensures that you can obtain financing for a home or car.”

Yet More Good Credit Score Benefits – The Benefits of a Good Credit Score Go On and On …

You may feel like I’m beating a dead horse here but it’s amazing to me how many people don’t take their credit score seriously and I believe it’s partly because many don’t realize how far reaching the effects are on their life to either extreme depending on how they treat it.

I hope these past few posts have lit a fire under you especially after today reading about YET MORE good credit score benefits…

Click here now to get on the road to yet more good credit score benefits of your own…

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Yes… you guessed it… STILL more good credit score benefits…

This past week I have put up 3 other posts outlining the many good credit score benefits available to those who exercise the necessary personal finance strategies to develop an excellent credit score.

An awesome credit score is no easy task that takes time, discipline and commitment to achieve but if you look at my past posts on the subject and now see there are still more good credit score benefits you will soon have the motivation necessary to go down that path.

Today while snooping around I found an article on Credit.About.com showing there are still more good credit score benefits for me to pass on to you.

A great credit score benefit is better auto insurance rates...

“Better car insurance rates.

Add auto insurers to the list of companies that use a bad credit score against you. Insurance companies say that people with bad credit tend to file more claims and these people are penalized with a higher insurance premium. With a good credit score, you’ll pay less for insurance than similar applicants with lower credit scores.

Get a cell phone on contract with no security deposit.

Get better cell phone contract options with a strong credit score.

Another drawback of having a bad credit score is that cell phone service providers may not give you a contract. Instead, you’ll have to choose one of those pay-as-you-go plans that have the more expensive phones. People with good credit avoid paying a security deposit and can get hundred-dollar discounts on the latest phones by signing a contract.

Avoid security deposits on utilities.

Avoid having to plunk down ridiculous utility deposits with a higher credit score.

These deposits are sometimes $100 to $200 and a huge inconvenience when you’re relocating. You may not be planning to move soon, but a natural disaster or other unforeseen circumstance could change your plans. A good credit score means you won’t have to pay a security deposit when you establish utility service in your name or to transfer service to another location.”

 

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