Very few people have a perfect 800-level credit score. As a matter of fact, the average adult has a credit score of 677 in the United States. And, that's only the average, elevated by the highest scores. An estimated 55 to 60 percent of Americans have a score less than 677.
So what is considered "bad credit" and how do you get back into "good credit" standing? Well, let's start by defining bad credit. Typically, a score below 600 is considered bad. Credit scores are assessed and determined by the amount of risk involved. If you are considered a high risk by a lender (i.e. have a low credit score), the less likely they are to approve you.
Credit is determined primarily by five main factors: your payment history, length of history, amounts owed, new credit, and types of credit. If you have "bad credit," it is due to mistakes in one or more of these areas. Typically, bad credit is the product of late or missed payments on accounts.
So how do you get back in "good credit" standing? That's where we come in. At Downs Financial, Inc., we offer an extensive line of mortgage products specializing in refinance debt consolidation, cash out, home improvement, and home purchase loans for those with poor credit. Don't let bad credit keep you from homeownership or refinancing your current home. Our mortgage solutions cannot only help you boost your credit score (by adding to payment history, length of history and lowering amounts owed), but we can put you on the right track to a debt-free life.