First of all, your credit score is just one factor that determines whether you can get a loan or not. Your credit score is determined by Fair ISAAC & Company (FICO), the leading credit reporting agency. FICO knows whether you have a bad credit history or not.

FICO cannot reveal how they compute your credit score as decided upon by the US Congress. However, if your FICO score is higher, you have a better chance of getting a mortgage loan. You can also be offered lower interest rates. But, if your FICO score is lower than 500, your chances of getting a mortgage loan are very slim.

When your credit score is around 500-600, you can still get a mortgage loan. That is if you are willing to make a down payment. Lenders are still willing to give you a chance to get a mortgage loan, but the interest rates may be higher than you expected. One more thing, the down payment may need to be a very substantial amount (sometimes 20% or more).

Improving your credit score can be of help. You can consult a mortgage broker to help you. Mortgage brokers can give you tips on how to increase your credit score and there are several programs that you can use to improve on your credit score.

It is important to plan ahead. If you foresee a need to buy a house in the future, it is advisable to study how you can improve your credit score. If you have a credit score of 600 or higher, lenders are more than willing to give you a mortgage loan or any other loan. The best benefit that lenders can offer you is to give you lower interest rates.

However, if you have plans to get a mortgage loan at your current credit score, never give up. If a mortgage company is not willing to give you a loan, there are other lenders out there that can still offer you a loan. Not all lenders have the same criteria in choosing which individuals to approve. It is helpful to ask a mortgage broker for help in getting the best offers and rates.

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Moe Bedard
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My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications. I currently live in Carlsbad, California with my beautiful wife and children.

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