When you’ve got a bad credit history the world of lending can seem like it’s against you. The good news is you can still pursue the dream of owning a home in the New Year, but there are a number of things that you need to be aware of before applying for bad credit home loans. Here are three tips on how to improve your chances of being approved.
1. Pay your bills
Examining your own credit history and improving your financial circumstances is one way you can prove to your prospective lender that you deserve a home loan. Ensuring that credit cards and loan repayments are deposited on time, as well as regularly paying electricity, internet and phone bills, will help demonstrate that you are trying to get your financial records back in the black and boost the likelihood of your loan application being accepted.
2. Approach alternative lenders
Often bad credit will prevent you from being approved by traditional channels, but consider a non-conforming lender as a solution. Instead of discounting you because of the red flags on your financial record, they will look closely at all the outstanding issues in your credit history and take you through each entry to get a better idea of your position. But it’s important to be as truthful as possible. Dishonesty will only make your lender more suspicious and can even reduce your chances of a successful outcome.
3. Seek advice about credit repair
If you’re concerned that a bad credit history will continue to haunt you or you’re struggling to pay outstanding payments, there are a number of firms that offer credit repair services before you apply for a home loan. These firms will remove or correct bad credit listings, and make applying for home finance much easier in the future. Not only that, they can help you avoid expensive repayments on your current loans.
