what is considered bad credit

This is a very broad question, so you get a broad answer.. In mortgages finance, lenders are persuaded by the mortgage score primarily.. Most lenders require a 640 or above to get financing with some lenders going down to 620, 600, 580 and a token few go to 500. FHA states if your score is below 580, you need 10% down payment.. Otherwise its 3.5% down payment.. In general, if you have multiple late payments, or charge offs, collections, judgments, tax liens etc.. Then you are a bad risk, and your credit is bad... If your credit score is 740 or above, then you have "Good" credit and will qualify for most lending programs.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

It depends on the context. Good credit, for FHA is different than good credit for conventional and different still for investment. Generally if you have more than one 30-day late payment in the last 12 months, or some collections or charge-offs, you would not have credit that is good enough to get a mortgage loan. HOWEVER, depending on many other factors, like how long you have had credit, the amount and type of credit accounts, the balances, etc, you might have several collections, a 30-day late and still have good enough credit to get a mortgage. The best way to find out if your credit is good enough, or what steps you need to take to make it good enough, meet with a local Mortgage Banker/Broker and apply. They will be able to tell you where you stand. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

In the mortgage world anything below 640 is difficult to work with.

AImpeccable - 740 score +. On time payment on all obligations. NO late mortgage payment. Never any Bankruptcy or foreclosure.A - minusGreat (720 - 740 score)On time payment on all obligations. Maybe a little too much debt. One or two 30 day late payments a few years ago on revolving credit or installment loan. Never any Bankruptcy or foreclosure.B+Good (700 - 719 score)One or two OLD 30 day late payments, no more than one 60-day late payment on revolving credit or installment loan. Bankruptcy or foreclosure has been discharged or settled over 4years ago with excellent re-established credit.BOK (680 - 699 score)Minor blemishes in the last 4 years. A few OLD 30 days late payments, a couple of OLD 60 day late payments. A 30-60 day late only once on a mortgage payment. Bankruptcy or foreclosure has been discharged or settled at least 4 years with some re-established credit. Very likely too much debt. High balances on credit cardsCWeak (620 - 680 score) Blemishes in the last 2 years. A few fairly recent 30 days late payments, a couple of OLD 60 day late payments. A 30-60 day late only once on a mortgage payment. Bankruptcy or foreclosure has been discharged or settled at least 2 years with some re-established credit. Very likely too much debt. High balances on credit cardsDPoor (below 620 score) Disregard for timely payments. Recent late payment activity, collections, bankruptcy, foreclosure. Unlikely to qualify for a home mortgage loan

Bad credit is like a bad hair cut. Time and if groomed properly you can turn it around. Even a Bankruptcy is viewed as a fresh start and is explicitely in our laws because everyone is entitled to a second chance. There are non-profit agencies that can help you understand and plan your budget which is the most important first step. Loan officers can sometimes coach you as well on what is reported on your report so you understand what needs to be paid (although not in is not in their job description). Be wary of quick fixes and the better your credit better the rate - more affordable mortgage.I entertain loans down to 580 but it is expensive has to be within you budget and significant compensating factors are needed to offset the scores Pennsylvania loans only. I recommend that you talk to your local broker that can be found on this site as a start.

Generally speaking you will need a 640 credit score to get reasonably good rates for FHA and VA loans, and a 720 credit score to get good rates for a conventional loan. Many lenders, including us, allow credit scores down to 620 on many of their loan offerings, however, you are wise to improve your credit score where possible to assure you get the best rates.John Desmond, 888-407-1592