If you are looking to get a home loan approved with a bad credit rating then it can be challenge. Due to the recent sub prime fiasco, there have been many changes that have happened in the mortgage lending system. Low credit score mortgages can be difficult to obtain if you don't meet certain lending requirements.
The first thing you should do if you are going to apply for a low credit score unsecured loans is to look up your credit rating. By looking up your exact credit score you can see exactly how bad your credit rating is. Go online and get a free copy of your credit report. Once you see your report make sure that you don't see any errors that exist. It is quite usual for there to be errors that can cause people to have a lower credit score.
After you have looked up your credit rating, the next thing you can do is start paying down some of your high interest debts. Look to pay off as much credit card and unsecured debt that you have. Unsecured loans are considered bad debt and will usually make your credit score worse. A benefit to reducing this debt will be that your debt to income ratio will improve. The better your debt to income ratio is, the greater the chance you will get a low credit score mortgage approved.
Looking for the right lender is another step that you can take to get your loan approved. Be sure to get quotes from different lenders to ensure that you get the best rate available on your loan. www.unsecuredloansonline.org.uk
No comments:
Post a Comment