credit score for loan

Discussion in 'Starting a Lawn Care Business' started by bluflame1914, Jul 6, 2007.

  1. bluflame1914

    bluflame1914 LawnSite Member
    Posts: 55

    What is the lowest score you have had, seen, or heard of get a loan? and from where? I'm trying to build my credit up by the end of the year.
  2. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    I've seen people with very bad credit, 500-600 credit scores, getting mortgages for homes. Of course they will probably default but they did get the loan.
  3. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Yeah there's no limit, but the interest rate is sky high, let me put it this way:

    The lender's interest rate = profit + default rate (roughly).
    So once you get down in the 5-600's your default rate nears 30%, and they simply tack that on to whatever the profit rate should be, so ... And usually banks won't touch it, afaik a bank won't lend much below a B rating (700+ or thereabouts, might be 680 I forget but the higher the amount, the better the score has to be, etc, etc).

    It's a gamble, but the trick to a good credit score is actually borrowing when you do NOT need it, stupid as it may sound, those with the highest scores never pay interest, admin or late fees (and I mean never).
    Literally, the better your score, the cheaper life gets.
    And those with good scores literally don't need loans, they do it to boost the score, or out of sheer boredom.

    Last check mine was 793 :laugh:
    Could be a fluke thou, it hovered around 720 forever then suddenly...
    But lol, that took 8-10 years of hard work, consistency and planning.
  4. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    Go to the business management section and read the thread titled : Building business credit can be easy. It is very long, but if you do what is said there you can just finance something in your business name.
  5. LawnSite Fanatic
    Posts: 8,136

    The real question is what type of loan are you looking for?

    Mortgages for people who have "lower credit scores" 500-640 are becoming harder and harder to find. Check out:

    To improve your credit score, you can do serval things. First order a copy of your credit report. They are free from the 3 major agencies.

    Make sure everything on your report is factual. Pay down, or pay off balances. If you have a credit card with a 5K limit and you owe 4900 on it, that counts against you. Pay it down or off.

    Dispute anything negative on your report in writing with the credit agency. The credit reporting agency checks the dispute with the originating creditor. If the originating creditor does not reply in 30 days will proof, the "ding" must be removed.

    Keeping your balances low, and payments made on time will insure that your score will improve.

    good luck!
  6. Allens LawnCare

    Allens LawnCare LawnSite Senior Member
    Posts: 926

    If your in good standings with a CC company and your balance is more then half of the limit, ask for an increase that will put you at half the limit...anything over have will decrease your score. Personal though once you have a home credit is easy to come by, I bought my house with a credit score around 480, within 2 years my score is a little over 650, I'm in the rebuilding process too. Thats why I pay cash for everything, if I do charge I payit off before the next statement....I think it's stupid for someone else to make money off me because I wanted a new TV.
  7. bluflame1914

    bluflame1914 LawnSite Member
    Posts: 55

    the loan is for a truck and equipment. last I checked it was 540 range.
  8. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    Forget it.........
  9. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Sorry man, but its probably not gonna happen for you right now. I know its frustrating, especially when an EX-WIFE (B!TCH) ruins your credit and it take you years to repair! Oh, sorry did I sound bitter? I dont know if you have credit cards or what but try to pay them down or off but dont close the accounts (just keep from charging them back up). In 6 months or so try Sheffield Finance for equipment, they seem to be a little more flexible. We financed our new Gravely through them and got a better interest rate then a conventional bank (2% lower)
  10. bluflame1914

    bluflame1914 LawnSite Member
    Posts: 55

    just did the dun number process.

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