Homeowners with bad credit

homeowners with bad credit

Previous or current credit problems don't have to hold you back from getting the finance you want. Even if you've had CCJs, arrears, are self employed or have no credit history - fortunately there are a few lenders who specialise in offering mortgages, credit cards and loans for people with a bad credit rating.

Specialist lenders understand that just because you have run into financial problems in the past, it doesn't necessarily follow that you will be unable to meet your financial commitments in the future. They provide poor credit loans to many types of applicants - even discharged bankrupts - as long as the borrower can afford to meet their monthly repayments. Loans are available for both tenants and homeowners with bad credit history.

If you have run into serious arrears, perhaps because you get divorced, fall ill or lose your job, you're likely to have a poor credit rating. Minor blips on your credit record, such as missing a credit card payment, failing to pay a parking ticket or forgetting to settle a utilities bill, can also affect your eligibility for credit.

Most mainstream lenders will reject applications from people who have a bad credit history such as County Court Judgements CCJs, defaults and bankruptcy. You can also be rejected for a personal loan or mortgage for a wide range of relatively minor problems such as not being on the electoral roll, not having a bank account, receiving income benefits and even making several applications for credit in a short space of time. Figures from analyst Datamonitor estimate that 9.1m people were refused credit by mainstream lenders in 2005.

Homeowners with bad credit Getting credit can sometimes seem like an impossible task and it's easy to get despondent if you're turned down. The truth is no one has a right to get credit or to be given a reason why credit has not been granted.

The adverse credit market has become far less competitive in recent years with the differentia in rates between bad credit and good credit products increasing significantly. However, a few reputable lenders still offer bad credit loans, credit cards and mortgages for people with bad debts, CCJs or even a past bankruptcy on their credit file.

Contrary to popular belief, there is no such thing as a credit blacklist detailing people who shouldn't be lent money. Each lender will have their own criteria for determining whether to accept you as a customer, they will use the information you provide on the application form and the contents of your credit file to make a calculation on your "risk" as a potential customer.

Use the search facility above to find UK lenders who will accept applications from people with bad credit history.

Each time you apply for credit, the lender will carry out a search with a reference agency to help establish whether or not you are creditworthy.

Lenders use credit scoring to decide who to lend money to. You earn a certain number of points for each bit of information in your application.

A few simple tips on how you could give your credit score a push in the right direction.

Research suggests that those "systematically denied credit by mainstream lenders" will increase from 7 million to 8.6 million by 2011.

Remortgaging or taking out a loan to consolidate debt is a popular way of reducing credit card and loan repayments. But do the risks outweigh the gains?


Get a Home Improvement Loan, Even If You Have Bad Credit

Get approved for a home improvement loan with a low credit score. Government and private home renovation loan programs for homeowners with bad credit. Home improvement grants for people with bad credit.

Whether you want to fix up your home to sell it, rent it out, or simply upgrade a room or two, you may be eligible for a home improvement loan. Many homeowners are under the impression that they need excellent credit to be approved for this type of loan, but this is not the case anymore due to the lender options that are available.

Even if you have filed for bankruptcy in the past, here are some options that may help you secure a home improvement loan with less than stellar credit history.

A simple Internet search will provide you with pages of private lending companies that specialize in helping borrowers get approved for home improvement loans with bad credit.

Before you fill out a loan request form for any of the private lending companies that look promising, be sure to check with your state’s mortgage broker licensing board about the lending firm’s reputation. Most private lending sources are restricted to conducting business within their region or state and have fairly short repayment terms, but these lenders often approve applicants quickly.

Specific government programs such as the FHA Title I Property Improvement Loan program or the Section 203(k) Rehab Mortgage Insurance loan are programs that help homeowners with the costs of renovating their homes. FHA Title I loans are issued by private lenders but insured by the federal government in case the homeowner defaults on the loan.

A Section 203(k) Rehab Mortgage Insurance loan allows a borrower to finance renovating his or her existing home through a single mortgage or special financing. Information on both home renovation loans can be found at http://portal.hud.gov/hudportal/HUD?src=/topics/home_improvements.

If you belong to a local credit union, you may qualify for a bad credit home improvement loan. All credit unions offer specific programs to help their members acquire specialized loans regardless of their low credit scores. Credit unions were not established to make a profit off of their members, so their credit score requirements are less stringent than the credit score requirements for a typical bank.

Instead, a credit union looks closely at how long a member has been with the credit union and how well a member has paid off previous loans with the credit union. If you are not part of a credit union and would like to join one, findacreditunion.com is a site that locates credit unions in your area. Credit unions are independent nonprofit organizations, so it is best to compare interest rates from several of them before committing to a home improvement loan payment.

Before committing to one of the loan options mentioned, you should calculate how much the materials and contractor will cost for the home improvements you intend to carry out. After you take an assessment of the renovation costs, make sure the improvements increase the value of your home, the monthly loan payments are affordable, and the loan’s interest is tax deductible.

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