Loan FAQ Library

Credit

What minimum credit score do I need to get a mortgage?

Minimum credit score requirements vary by loan type. FHA loans accept scores as low as 500 (with 10% down) or 580 (3.5% down). VA loans have no official floor but most VA lenders r...

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Credit

How can I quickly improve my credit score before applying for a loan?

The fastest credit score improvements typically come from: paying down revolving credit card balances (reducing credit utilization below 30%, ideally below 10%); disputing and corr...

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Credit

What factors affect my credit score the most?

FICO scores are calculated using five factors: payment history (35%) — whether you pay on time — is the most important; credit utilization (30%) — how much of your available...

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Credit

How long does negative information remain on my credit report?

Most negative information remains on your credit report for 7 years from the date of first delinquency. This includes late payments, collections, charge-offs, and most civil judgme...

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Credit

What is the difference between FICO Score and VantageScore?

Both FICO Score and VantageScore are credit scoring models that use information in your credit report, but they were developed by different companies. FICO was developed by Fair Is...

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Credit

How does a credit inquiry affect my credit score?

A hard inquiry — when a lender pulls your credit to make a lending decision — can lower your FICO score by 2–10 points and stays on your report for 2 years, though most scori...

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Credit

What is credit utilization and what percentage should I aim for?

Credit utilization measures how much of your available revolving credit you are using, expressed as a percentage. If you have a $10,000 credit limit and a $3,000 balance, your util...

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Credit

Can I get a loan with no credit history?

Getting a loan with no credit history is challenging but possible. FHA loans accept borrowers who cannot produce a traditional credit score and allow alternative credit references...

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Credit

How does bankruptcy affect my ability to get a loan?

Bankruptcy significantly impacts loan eligibility but does not permanently prevent borrowing. After Chapter 7 bankruptcy discharge, FHA loan waiting periods are 2 years; VA loans a...

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Credit

What is a credit-builder loan and how does it work?

A credit-builder loan is designed specifically to help people with no credit or damaged credit establish a positive payment history. Unlike traditional loans, you do not receive th...

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