If you have damaged credit, you need to know that you are not alone. In fact, a lot of people are struggling with damaged credit due to varied reasons. For example, you may have been affected by the recession, and you lost your job when you didn’t anticipate. Or you might be getting your divorce processes dealt with properly.
More often than not, damaged credit may result from misappropriation of funds, poor spending habits, financial mismanagement or even a foiled business. If you are faced with any of these circumstances, you may have to consider applying for a mortgage loan that will help you pull through these economic uncertainties.
However, for you to get accepted for any mortgage, you need to show interest in repairing your credit, or at least, try it.
It is important that you clean up your credit card. To do this, you may have to request the three major credit bureaus to furnish you with your credit reports. You need to examine it carefully.
Make sure it contains no errors, unauthorized charges or inaccurate information. You have every right to dispute any error that you find on your credit files. Such drastic measures are considered the best way to boost your credit score.
You also need to be keen to look for any negative remark on your credit report. If you discover a 7-year-old negative comment, do not take that sitting, rather, ask the credit bureau to expunge it from your files as soon as possible. Maybe you had filed for bankruptcy ideally, the record should not be shown on your recent credit report.
The next thing that you need to do is to work towards improving your credit score. You have to ensure that you have no standing debts in any of your accounts. You need to be punctual in submitting your payment to show your creditors that you are seriously concerned about your credit rating.
If you have damaged credit; you cannot afford to make another late payment. It is also best if you keep your credit usage as minimal as possible. Ideally, you need to use less than 20% of your credit limit.
You also need to check out if the government offers loans. These loans are the real deal if you have bad credit. You need to find out if you qualify for the same. What is more is that these government loans are less stringent as compared to the commercial lenders and banks. Their interest rates are incredibly low.
When applying for your mortgage, you should not submit several applications to various lenders. Submitting several applications may give a negative impression to a lender that was about to yield. It can also reduce your credit score drastically.
If you are keen to follow these simple steps, you are likely to have your mortgage application accepted by your lender.