Do you have a poor credit rating? Just because you have a less than perfect credit score doesn’t mean that you can’t get an affordable home loan. Getting a home loan can be your first step to rebuilding your credit rating and getting on with life.
But you do have to be careful about what kind of loan you get, as the home loan market maze for those with impaired credit is complicated and confusing – and going from bad to worse isn’t something you want.
At First Choice Loans, we understand that life doesn’t always go as planned. That’s why we are prepared to work with you in getting a loan that is suited to your unique situation and financial needs, so you can rest easy knowing that you’re getting the best home loan for you, at the best interest rates available.
|Free Service – No Broker Fees|
|Fast Approval Process|
|Multiple Lenders & More Than 300 Options|
|Free Property Valuations w/ Many Lenders|
|We’re WA Wide!|
So if you have a bad credit rating and you need a loan, we’ll help you apply for and get the best financing for you.
If you’ve defaulted on a loan, had trouble making payments on time or even applied for credit too often, these things can all negatively affect your credit rating. All of this information is collected and recorded, which go into the calculation of your Credit Score. This score is a number from 0 to 1200, with scores below 509 considered to be below average, while a score above 833 is considered to be excellent.
To sum up – a low credit score means a more difficult time applying for credit, and paying higher fees when you receive it.
There are a number of things that could negatively impact your credit score, some more than others. These include the following:
Lenders look at your credit score to ascertain whether you’ve had any issues in regularly paying off debts in the past – if you have a history of missing payments, defaulting on debts or even bankruptcy, lenders will rightly question whether lending to you is a wise business decision.
Lenders that do lend to higher risk borrowers will often have higher interest rates to compensate for the increased risk, which of course only increases the risk that you’ll find yourself in a difficult financial situation once more, which can turn into a vicious cycle.
To re-iterate, it’s still possible to get finance with a bad credit score, but you should do everything in your power to improve it before making an application, and only apply for credit that you are comfortably able to service, to avoid the trap of falling into more debt.
Luckily, there are many things you can do to improve your credit score. Check out some of them below:
It is indeed, but the range of lenders who would be willing to lend you the loan will be restricted.
Do everything you can to improve your credit score before making an application.
It is – you can get a free credit report twice a year, and there are also paid credit file monitoring services.
Yes they do – every credit application, successful or otherwise, is included on your credit file.
It’s best to make credit applications only when you have a reasonable chance of being approved.