My Credit Score is 580 and I have been approve for a loan at 11%?

Deal Score0

I will be in a credit repair program for 3 years and then I can refinance at a lower rate. Is this standard? Or can I get a better deal. I live in Texas.

  1. Reply
    June 26, 2011 at 12:30 pm

    Im actually surprised you got a rate as low as 11% with a credit score that low. In a few years you should be able to refinance. Yes, this is pretty standard.

  2. Reply
    June 26, 2011 at 12:32 pm

    What type of loan?

  3. Reply
    June 26, 2011 at 1:11 pm

    For credit that bad, that is an excellent rate! It is very standard to be on sort of a probation deal for a few years. Once you prove yourself, yes, you can get a lower rate. Best of luck to you!

  4. Reply
    June 26, 2011 at 1:53 pm

    Refinancing a mortgage loan in 3 years isn’t going to help you lower your monthly mortgage payments if you can’t recouperate the loss, in terms of closing costs. Each time you refi, you’ll have to pay closing costs again, which can be up to $ 10,000 or more depending on the loan.

    You can check mortgage rates for a variety of loan products in your state, e.g., 30-yr fixed, 5/1 ARM, etc, on

    If you haven’t bought a home yet, you could go ahead through a credit repair program, pay off all your bills on time, and maybe take out a small personal loan at your bank and pay that back in full over a period of time. It’s not an overnight fix that you can repair your credit history.

    If you’re married, does your spouse have a better credit score?

  5. Reply
    June 26, 2011 at 2:47 pm

    My husband is a loan officer and if you would like he could see if he can get you a better % rate. 11% seems high to me but I don’t know all of your situation. My husband works with subprime mortgages and they can usually get you a lower rate depending on your situation. If you want his contact information feel free to email me.

  6. Reply
    June 26, 2011 at 3:01 pm

    why dont you try to fix your credit first…. pay what you have to pay, dispute every account that is erroneous or not yours….
    If you increase your credit score by 100 points, I am sure you can get something better….
    11% is too high for a mortgage… and yes in 3 years you can refinance but in 3 years a lot of things can happen….
    Whoever is telling you that in 3 years you can refinance, ask them if the can give you in writing the guarantee that you will be able to refinance and get a better deal after 3 years…. They can’t!

  7. Reply
    Todd S
    June 26, 2011 at 3:35 pm

    I wouldn’t get into a credit repair program. They keep you locked in, and part of the contract usually states that you can’t apply for any new credit during that time. So essentially if your score improves, you’re still stuck in the program paying high interest rates, though you may qualify for lower interest rates.

    That, and they charge you money to be involved in their programs. I say stay away from credit repair and consolidation programs. Bad news all around. Get credit help by teaching yourself about credit!

    Learn more at

  8. Reply
    June 26, 2011 at 4:20 pm

    That does sound very high, but I’m not sure of all the other variables outside of your low credit. Have you tried more companies than the one that approved you for 11%? If not, call around…sometimes if you get a good broker/agent, they can work the numbers better for you. You could also try this site for help, free quotes, and resources.

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