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Banks That Lend To People With Bad Credit

June 28th, 2016 ernie Posted in Bad Credit Home Loans No Comments »

Banks That Lend To People With Bad Creditthere are not many Banks That Lend To People With Bad Credit. They are in the business of managing their risk profile and let’s face it with a bad credit rating you are already at a high risk level as far as they are concerned. They are in the business to make money and losing on someone who does not meet their obligations does not contribute to profit expectations. In addition, loan managers who want to advance within the company are not going to want a bad credit risk staining their reputation and preventing them from getting promoted. So what do you do?

Banks That Lend To People With Bad Credit

The first thing is to repair your credit rating by paying all of your bills and loan payments on time all of the time. Never miss a payment. This is like a red alert on your credit score if do. Always keep your debt payments each month to less than 35% of your total gross income.

When you approach the bank for a loan, know your numbers. Know your credit score and how you can improve it. Also know what your debt ratio is. If it is above 35%, forget taking out a loan unless you’re consolidating to reduce the monthly loan payments.

Focus on establishing your credibility regarding meeting your monthly payments for the new loan and also your existing debt. Your making a sale to a bank lender and you are selling yourself so do a good job.

For post about bad credit home loans and how to manage bad credit, click here.

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Bad Credit Mortgages for Home Purchase $50,000 – $200,000

April 14th, 2016 ernie Posted in Bad Credit Home Loans No Comments »

Bad Credit Mortgages for Home PurchaseBad credit mortgages for home purchase are difficult to obtain when your credit rating is below 500 on most credit rating agencies. Unless you have a rather large down payment that is at least 20% of the value of the home, many lenders will not even consider lending money to you. Miss a few monthly payments on loans or credit cards, reports from missed rent payments or utility payments and you will find that your credit rating tanks. Relatively small mortgages in the range of $50,000 to $200,000 are just as difficult to obtain with bad credit ratings. Even people who are looking for larger mortgages on a home will find that unless they have a huge down payment, they just will not be approved for a mortgage.

Bad Credit Mortgages for Home Purchase

A down payment of more than 20%, on a home that is valued at below market average values is one way to be approved for a bad credit mortgage. It means that there is lots of equity in the home and the lender knows that if you default on the mortgage, they will be able to sell the home and get their money back with relatively low risk.

Bad credit mortgages for home purchase may also attract higher interest rate mortgages that reflect the risk that the lender feels that they are taking when they lend money to you. They may also assign mortgage insurance fees and other fees to the cost of the mortgage approval process. They really do not want to be stuck with any costs at all.

For more bad credit home loans details, click here.

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Home Loans for People With Bad Credit

February 28th, 2012 Debt Posted in Bad Credit Home Loans 1 Comment »

Home Loans for People With Bad CreditHome loans for people with bad credit is always an interesting subject and our next question from one of our readers is exactly on this subject concerns getting a home loan when you have a bad credit rating.  To summarize, our readers  credit rating is below 500 and their  debt to income level is only .3.  They had some trouble a while back with a company so they refused to pay them and they sent a notice to the credit agencies which caused their credit rating to nosedive.

They indicate that they never missed a payment and now have this bad credit rating and want to get a home loan. This is really an unfortunate situation for the people who sent in this question.

Home Loans for People With Bad Credit

This is what happened and let it be a lesson to many other people as well. They received a product from a less than reputable company who did not take returns. The couple was not satisfied with the product and wanted to return it and not complete all of their payments. The company referred to their policy of no returns and tried to collect the remaining money from their customer.

When they refused to pay, two things happened. One it went to small claims court and the couple eventually won their case. Secondly the company in the process of collection also filed a report to the credit agency and as a result this couple who previously had a stellar rating now have a bad credit rating.
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Questions about Home Loans for People With Bad Credit

February 21st, 2012 Debt Posted in Bad Credit Home Loans 1 Comment »

Home Loans for People With Bad CreditWe received a question about home loans for people with bad credit. This reader has a bad credit situation and we will answer his questions in our next post about home loans for people with bad credit. He is applying for a home mortgage and found out that a dispute he had some time ago is affecting his credit score and making it difficult to find a mortgage with a decent interest rate.

Home Loans for People With Bad Credit Question to Debt Counselor::

My credit rating is below 500 although my debt to income level is only .3.  I had some trouble a while back with a company so I refused to pay them and they sent a notice to the credit agencies which caused my credit rating to nosedive. I have never missed a payment in my life and now I have this bad credit rating and want to get a home loan so that I can buy a new car. Do you think that this is the right way to go about getting a loan.

Do you currently have a mortgage? :: yes, and all payments are up to date

Home/Mortgage Loan Amount :: $75,000

Other Loans, Including Credit Cards:: None at this time, 2 credit cards with zero balance. We pay the charges to the cards in full each month on the statement due date.

Are you employed and for how long:: yes for 3 years

Your credit rating to be – excellent, fair, or bad? :: Bad as explained above
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Bad Credit Home Loan in San Jose

October 21st, 2011 Debt Posted in Bad Credit Home Loans 1 Comment »

Bad Credit Home Loan in San JoseWe received the following question and information from a reader about bad credit home loan in San Jose and will answer his questions in our next post.

Question to Debt Counselor::

I am trying to arrange a loan with my home offered as security against the loan. The only reason I am doing this is that I have a bad credit rating. And I am wondering if this approach will work given my circumstances. I plan to consolidate credit card debt at a lower interest rate. My credit rating suffered as a result of missing several payments on the credit cards. A report went to the credit rating agencies. I have never missed a payment on my mortgage and do not even plan to. Our home is our castle. We will do everything we can to retain our home and not risk losing it.

Do you currently have a mortgage? :: I have a small mortgage. I have never missed a payment. There is lots of equity in the home, enough to support taking on this additional home loan even with a bad credit rating.  If needed we could also arrange for an appraisal to establish the value of our home.

Home/Mortgage Loan Amount :: $10,000

Other Loans, Including Credit Cards:: My credit card balance is approximately $9500. It will be paid off with this bad credit home loan.

Are you employed and for how long::. I am employed for the past 10 years. The company is very profitable. I see no reason I should not remain with this company for many more years.
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Home Loans for People with Bad Credit

October 20th, 2011 Debt Posted in Bad Credit Home Loans 1 Comment »

Home Loans for People with Bad Credit Having a bad credit rating is bad enough, however when you also need a home personal loan, it can get quite frustrating. Whatever your reason for needing money, many people finally realize that they should have paid more attention to their credit rating when they are turned down for a loan or they have to pay a higher interest rate than they expected.  Once you have a bad credit rating, it is very difficult to find anyone to lend money to you at reasonable rates and terms. When you do find a bank or company that will provide Home Loans for People with Bad Credit, they want a high interest rate and they want expensive terms usually in the form of high fee’s. They tend to take this position so that they can protect themselves financially from customers who are unable to repay their loans.

Home Loans for People with Bad Credit  – Interest Rates?

Bad credit home loans will usually be a percent or two higher than the regular loan interest rates. Even then, depending on your circumstances for how you  ended up with a bad credit rating, you may still not be able to find a lender. With all of the losses these days in the housing industry, the record of people walking away from homes etc, there are just not that many lenders that are willing to lend money to people with bad credit ratings. Bounced checks and checks that are refused due to insufficient funds are a big warning for any lender who is reviewing a loan application. Next are the pay-day loan lenders and other unscrupulous lenders that charge extremely high amounts of interest which are even higher than those charged by credit card companies.
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