So today, when it is more difficult to credit credit for a loan or a home loan, you need to be creative and improve your credit rating and reduce the banks credit risk.
so you are in search of a loan but have less than perfect credit? – Well do not fret. At least that’s what some lenders are saying and definitely advertising.
There are several banks and lenders that have implemented special scoring mechanisms to deal with all types of credit problems, but it takes time finding a the right lender that will offer you the loan.
So here are some ideas – use them or lose them!
Please remember that if you have bad credit you will find in tougher to get a loan loans than people with perfect credit. Even if you do find a loan, the interest rates and terms would often not be the best. What makes the process of finding a loan with bad credit difficult is that some of these special offers have hidden clauses etc. So, shop around until you find one that provides the best offer that you are comfortable with and watch out for scams.
There is no question that people with a bad credit score can also obtain a home loan or personal loan, but before you approach a bank, find out what’s on your credit report. Look for errors and get them sorted out at the credit bureaus (ITC, MyTransunion or Experien) . This can improve your credit rate and help you get approved for a new loan.
Use you family – this is the cheapest loan you can get. . This way you don’t have to pay it back with interest, or even if you do, the interest rate will not be as high as a bank or a lender. Just make sure you have a contract and stick to the agreement – do not mess with family and friends ever.
Apply for a loan through your bank first before going to a external lender – they will be better – for a home loan use a mortgage originator. If you already have a relationship with a bank, this could increase your chances of getting the loan.
Find an eligible co-applicant, with a clean credit record to help you obtain a home loan . A co – applicant or surety ship can be a friend or relative. Just make sure you keep your side of the bargain and don not pull out of the deal ever.
Improve your credit rating by using less credit and by making all payments either on time or better still pay two days earlier. Doing these things will improve your credit rating and show your credit worthiness to prospective banks and lenders.
Avoid upfront fees.
Do not let any payments bounce in your bank accounts – ever!
Speak to your bank on how to improve your credit rating within the bank.
Get advice from a reputable financial specialist – often