There are a lot of people in our country who have a credit score under 600 and there are a lot of reasons why. Two people with the same credit score can have completely different prospects when it comes to borrowing. This article will help you to understand if you’re a decent candidate for a mortgage, even if your score is 600 or lower.

Let’s go through a few examples.

Person A – George

George has a credit score of 595 and is carrying high balances on his credit cards. He has two credit cards and his credit limits add up to $30,000. He is currently using $27,000 worth of those limits. He makes on-time payments now but has struggled to make on-time payments in the past.

George hasn’t made a late payment on his revolving accounts in 12 months.

Person B – Whitney

Whitney has a credit score of 603. She used to have a credit card but had a hard time paying it off. She let it get maxed out and stopped making payments. The card account was closed and she was sent to collections.

Person C – Carlos

Carlos has a credit score of 589. He really used to struggle to pay his bills on time. In fact, his credit was a complete mess. He has many derogatory items on his credit including a repossession.

In the last 18 months, Carlos has cleaned up his act. He has one credit card with a $1,000 limit. It’s rare for his to have more than $100 on that card and he makes his card payment on time. Most months, he pays it off entirely. He hasn’t made a late payment in those 18 months.


In this example, Carlos has the messiest credit history. Even so, he is the best candidate right now for a loan.

If George goes into a bank, they are going to want to know why he has so much money on credit cards. Since he’s done a terrible job managing the credit he already has, the bank isn’t going to want to extend him more.

Whitney is a terrible risk because she doesn’t pay her bills. She hasn’t cleaned up her act yet so she has no chance of getting a mortgage.

Carlos has a really good chance because he’s established a recent history of paying bills on time. He also doesn’t have other existing debts that could cripple his ability to pay. As long as he has the necessary employment history, he has a good chance at getting a loan. As more time passes, he will become a better and better candidate for a loan.

By establishing a recent history of solid finances, you increase your chance at getting financing for your future home.

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