Securing a Home Loan with Bad Credit – Part II

In “Securing a Home Loan with Bad Credit – Part I” we explored mitigating factors borrowers should consider highlighting when it comes to securing a home loan even when you have bad credit.  In addition to highlighting the financial assets you do have, your job security and proving your self-discipline as a saver rather than a spender, there are four other factors you should also highlight.
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Securing a Home Loan with Bad Credit – Part I

When it comes to securing a home loan today one of the biggest misconceptions is that you need to have an excellent credit rating, a large down payment and low debt-to-income ratio with steady significant income.  But the truth is home ownership can happen even if you have bad credit due to a foreclosure or bankruptcy or if you have previously been turned down for a loan.  Here are some things to keep in mind.
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Repairing Your Credit Score: Other Options

If you’re interested in learning more about repairing and maintaining a good credit score, particularly if you need to improve your own credit score, then read on. Perhaps, as a potential first-time homeowner, you’re in the market for a mortgage—or maybe you need your mortgage refinanced; either way, good credit is important!

Fixing and repairing your credit score is more than simply paying off debt regularly and in a timely manner, however. Yet it seems to be commonplace for consumers to be ignorant of what affects their credit score and what they can do to repair it and maintain a higher score.

But as already mentioned, there’s a lot more involved with what goes into a credit score. Here are five other, perhaps lesser-known ways you can fix and then improve your credit score.Continue reading

Buying Your First Home with Bad Credit

Lenders are a lot more cautious these days making buying your first home with bad credit seem like mission impossible. Trouble is circumstances have changed in the past few years with new loan limitations making it harder for people to get loan approval. While there are things you can do to maximize your chances of getting a loan, you should ask yourself some tough questions before investigating loan options.

First, consider if buying a home is good for your financial situation. Owning a home can be a lot of pressure with costs like homeowners insurance, repairs and property taxes many first time homebuyers have not had to pay before. Buying a home is one of the biggest lifetime investments many people will make. So you’ll have to do some soul searching to determine if owning a home is right for you.
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Avoiding Bad Credit

Let’s face it, bad credit happens to all of us at one time or another. Whether you’re unemployed, are disabled, sick and cannot work or the victim of credit card fraud or identity theft, falling victim to bad credit is easy. Here are some ways to avoid bad credit.

One of the best ways to avoid bad credit is to prevent it from happening in the first place. Creating a monthly budget before you start developing credit is the ideal way to keep your credit from getting out of hand. By making a list of your monthly income and monthly expenses, you’ll know your spending limitations. Just because a credit card allows you to go out and buy a bunch of stuff right away doesn’t mean that you should. It’s important to put a cap on your spending and stay well below your credit card limit. When you spend close to your credit card’s limit, your credit score goes down.Continue reading