Bad credit is when you have a low credit score. Bad credit prevents you from getting a good interest rate on a home loan, a car loan, a student loan or a personal loan. Bad credit will make a potential landlord think twice about renting to you. How can you get bad credit? If you’re late making payments or have a debt to income ratio that’s too high you may have bad credit. Learn how bad credit affects your financial life and how you can move from bad credit to good credit.
A low credit score can make borrowing money for a home loan difficult. One solution for borrowers with bad credit could be FHA loans and credit unions. But if you have a low credit score, you should be doing everything you can to improve it.
A prospective home buyer wants to purchase a home but has a poor credit score. The good news is that time will heal all credit history wounds. You can start cleaning up your credit by getting a copy of your credit history and score from each credit reporting bureau.
Even if you have terrible credit, someone will lend you the cash to buy a house. But with bad credit, you'll pay very high interest rates on a home loan. If you have bad credit but want to buy a home, it might be best to spend a few years working to improve your credit history so you are a better candidate for a home loan.
Who is better at managing credit, homeowners or renters? Results of a survey reveal the homeowners think they are better at managing their credit than renters, but both homeowners and renters could use some help. Both homeowners and renters appear interested in improving their credit histories and raising their credit scores.
If you're lucky enough to be able to get a home loan when you have bad credit, you should consider refinancing when your credit improves. Schedule appointments with major lenders to see what kind of rates they can give you. Take your credit report with you so the lenders don't have to pull it, lowering your credit score if you don't refinance.
A newly married couple is confronted with significant debt from a previous marriage. They may be able to clean up her credit, but the husband needs to be careful her bad credit doesn't drag his down. He needs to keep his credit separate and not use his wife's credit to qualify for a home loan or credit card, until her credit is cleared up.