What kind of interest rate can I expect with a 620 credit score, no derogs and only 2 credit cards?
the credit cards have been open for about two years and i have nothing else bad on my credit score. i have a decent job and stable income. I am looking to get a car loan. And my credit used to be bad because I had collections accounts. Thankfully those have been paid and deleted.
Public Comments
- I'm not sure what you are looking to get (mortgage, credit card, auto loan, personal loan)..but Ill help ya out the best I can. If you are looking to get a mortgage, you would probably have about a 7.5%-8% (because your score is low..i'm not sure why its so low with credit like that, it seems like you have pretty good credit). But if you are looking to get a credit card, it all depends on the card. Go on creditcards.com & check out the specials they have & check some out at banks and try and get the lowest interest rate you can get. I know Bank of American had a card that was 0% interest for a year, but I'm not sure if they still have that promotion, but its worth shopping around so you aren't paying crazy rates. If I didn't answer your question right, and you are looking to get some other type of loan, please email me & I will help you out the best I can. I worked for a bank in the finance department for 4 years, so I know a lot about these things. But I hope this helped, and feel free to email me if you have any other questions about it.
- I am assuming that you are trying to obtain a mortgage loan. If you are referring to a mortgage loan I can tell you that you can expect an interest rate between 6.5%-7.5%. This is if you obtain a FHA loan. This loan allows you to have very little down payment required (3%). If you are interested in down payment assistance, there are programs available for this as well. You can also receive a gift from a family member for help with your downpayment. It will be verified by the lender to ensure that the monies did actually come from a family member. Also, with FHA, you may be required to provide some alternative tradelines since you have limited credit. Ex. Cable Bill, Phone bill, timely rent payments (all of these must be never 30 days late within the last 12 months) to continue to prove your creditworthiness. However, if you get a Fannie Mae Loan, you may be in the same ball park figure for interest rate, but you may have to put down at least (5%). They may be a little more strict about where your down payment comes from. Lenders want to see your last two months of bank statements to prove that you have at least two months of reserves in the bank. Most lenders are being more strict about you putting more skin in the game as far down payment monies. They don't seem to like anymore "no down payment" deals any longer. It's just too much risk for them. I hope my advice was helpful! Good luck!
