My Credit Rights » bad credit home loans

Credit Rating Repair

Poster — Mon, 26 Jul 2010 19:35:07 +0000

There are many reasons people have bad credit rating and need to improve or repair their credit ratings, one of which is wanting to apply for a mortgage after bankruptcy. Having bankruptcy on your credit record does not have to be the disaster many people believe it is, and so long as you take the right steps and be patient, then you will be able to build up a good credit report in the space of around two years, meaning you will then be a candidate whose application would be considered by lenders.

Making sure that your credit report is accurate is the first thing that you should do, as it is not unheard of for inaccurate data to be recorded after bankruptcy. Accounts that were included in the bankruptcy may well still be showing as open and in arrears, and things such as payment plans may be recorded incorrectly. The only way to be sure that everything is in order is to check it through carefully yourself, and if in doubt then speak to the solicitor that handled your bankruptcy so they can cross reference the information held. Your credit report will be one of the first things any potential creditor looks at, so making sure it is accurate is vital.

Building up a good payment history is very important if you want to be considered for a mortgage after bankruptcy, as another thing lenders will look for is proof that you are able to commit to and maintain regular repayments. Obtaining credit following bankruptcy can be difficult, however you will find there are some credit card companies that specialise in high risk lending, who will take you on. While getting a credit card may be the last thing you want to do, it is the best way build a good payment history, by using it to make small purchases, and paying off the balance in full every monthly.

The interest rates on these kinds of cards will be sky high so you never want to leave an outstanding balance with bad credit lenders. Taking a few small steps at a time is the best way to progressing towards getting a mortgage after bankruptcy, and while it may feel frustrating, it will be worth the time and patience in the end.

Bad Credit Home Loans – Equity for You Not Your Landlord

Poster — Tue, 26 Jan 2010 05:05:29 +0000

Since Mr. Obama took office bad credit home loans have been a hot topic. In the last several years we have seen a large drop in credit scores nationwide and when credit scores drop, interest rates rise. This may be changing as our new presidential administration has been able to lower interest rates and has managed to keep them down as well.

If you have a bad credit score, banks normally see you as a risk and therefore in order to protect themselves they tend to charge higher fees as well as impose higher interest rates on mortgages. However because interest rates are on the dip, a bad credit home loan is not only possible it may be more affordable than you think.

If you have considered buying a home but shied away because of your low credit score think again. Right now may be one of the best economic scenarios in our history to get a home loan. May people are saying that this may not last so perhaps getting a bad credit mortgage is better than no mortgage. Waiting may not be the best plan. Getting your foot in the door while it is open will enable you to start earning equity and despite the higher interest and fees involved with this type of mortgage loan, earning equity in a property will pay off in the long term. Getting a fixed rate mortgage while the rates are low may be a smart move as well.

If you do get a bad credit home loan and the economy does take a spill you will still have earned some equity. If you have been able to keep your payments timely you could even be eligible for a refinance loan later on.

Regardless of how the economy shifts, getting a mortgage with bad credit now would be getting a foot in the door and a great opportunity to begin the process of improving your credit score.

Should You Consider A Bad Credit Home Refinance?

Poster — Wed, 20 Jan 2010 22:47:50 +0000

Lenders who offer bad credit home refinance options help high-risk consumers to rebuild their credit history while purchasing the home of their dreams. High-interest, creative financing is utilized to accomplish these goals when borrowers have lost homes in the past due to foreclosure. For these individuals, financial mistakes can be forgiven, especially if a stable banking, employment, and credit history can be proven since the foreclosure.

People who have bad credit can get a home refinance loan by using one of the most noble of business practices: honesty. Owning up to one’s financial mistakes, recognizing failures, and showing an attempt to make matters right is well appreciated by home refinance lenders. Honesty shows that the borrower wants to restore their financial good name, is forthright, and deserves lender confidence.

Bad credit home loans put financial stability within reach for those borrowers who need lower payments, different financing options, or adjustments in mortgage terms. Potential borrowers should keep in mind that having a low credit score, previous foreclosure, or recent bankruptcy will often result in a higher interest rate, sometimes even higher than disclosed in the first home loan.

While most financial mistakes can be overlooked or forgiven with the passage of time, bad credit home refinance lenders require that every new borrower meet stringent criteria. In some cases, mortgage payments are increased by hundreds of dollars. In others, the monthly payment is lowered, but the interest rate and overall term of the loan is increased.

Bad credit can slowly be corrected by making timely payments, avoiding bankruptcy, and maintaining steady employment. Consumers are also advised to obtain a copy of their most recent credit report from all three major credit reporting bureaus. In many cases, outdated or inaccurate entries can drag an otherwise good credit rating through the mud. By carefully scrutinizing these credit reports, addressing incorrect entries, and disputing duplicate accounts, people with bad credit can increase their overall credit ratings by as much as 40 percent!