If you have bad credit; it is worth knowing that you are not alone. In fact, a lot of people are struggling with damaged credit due to varied reasons. Far instance, you may be finding it hard dealing with your current situations due to the recession, and you may have lost your job unexpectedly. Or perhaps you may be working on your divorce processes.
And at times, a damaged credit could be as a result of a failed attempt at business, misappropriation of funds, financial mismanagement, or poor spending habits. If you are faced with any of these circumstances, you may have to consider applying for a mortgage loan that will help you pull through these economic uncertainties.
However, for you to get accepted by the lending firm, you may have demonstrated that you can repair your credit, or at least try out something that will better it.
It is vital that you clean up your credit card. To do this, you may have to request the three major credit bureaus to furnish you with your credit reports. Carefully scrutinize your report.
You need to scrutinize your report for unauthorized charges, inaccuracies, or any other errors. You have every right to dispute any error that you find on your credit files. This is one of the quickest and smartest ways to boost your credit score.
You also need to be keen to look for any negative remark on your credit report. If you find one that was recorded seven years ago, be sure to ask the credit bureau to delete it from your credit files very fast. For example, you may have filed for bankruptcy before, like 7 years ago – the record need not to be included in your recent credit report.
The next thing that you need to do is to work towards improving your credit score. You have to ensure that you have no standing debts in any of your accounts. You also need to submit your payments on time and regularly and this will tell your creditors that you take your credit rating seriously.
If you have damaged credit; you cannot afford to make another late payment. It is also best if you can minimize your credit usage at all costs. It is best if you can manage to use less than 20% of your credit limit.
You also need to check out if the government offers loans. These loans are the real deal if you have bad credit. You may need to find out if you qualify for the same. What is more, compared to the commercial lenders and banks, the government loans are less stringent on clients with bad credit. Their interest rates are incredibly low.
When applying for your mortgage, you should not submit several applications to various lenders. Submitting numerous mortgage applications can attract negative feeling, and this can turn away your potential lender. It can further reduce your credit score.
If you follow these simple guidelines, you are likely to get your mortgage application accepted by your financial institution.