Bad Credit

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Owning a home is a dream for almost everyone. Especially for adults who know the pain of having to deal with landlords, the headache of needing to pay the rent every single month, and the heartache of making payments on a property that will never be theirs.

Sadly, for those with bad credit, the dream may be just a little out of reach. Applying for home loan with bad credit gets a little harder; as banks are likely to deny a mortgage loan to an applicant who has bad credit.

Fortunately, there are ways to get around this.

Contrary to what you may have been led to believe, mortgage with bad credit is possible. The first way to be able to qualify would be to get your credit score back in good standing.

Bad credit may be a result of bad decisions, such as not paying …show more content…

Start with repaying bad debts. If the major reason for your bad credit blues is the fact that you have a couple of bad debts hanging on your report; then pay them off. Start with a plan: How much do you owe; how much can you afford to pay it back on a monthly basis, and how soon would you be able to pay off the debt with that monthly amount you can set aside for it? When you've determined this, tackle your debt by paying it off, with the amount that you've determined. Only then will your credit score and credit report begin to recover.

Work on rebuilding your credit report with steady and stable financial activity. You do this by getting your credit card back to a usable state by repaying the amount you owe on it. If you cannot do this, you may apply for a secured credit card. A secured credit card is a credit card backed by an actual amount of cash deposited to a bank account powering the card. Use these cards judiciously, spend wisely, and pay the whole amounts you've spent within the monthly billing cycle. The fact that you pay on time will boost your credit

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