To damage your credit is just too easy, some people don’t have any idea of the implications involved in credit and how it works. When you apply for any type of financial product on a large scale then you will most likely be on credit for that product whether it be a mortgage or loan. The problem is that even the smallest things can damage your credit to extreme lengths, from late payments to missed payments and defaults, even arrears. So what do we do if our credit is so bad that getting credit is a very hard job, as well as being far more expensive? lets take a look at some options.

(1) Pay off outstanding debts

Paying off any outstanding debts will automatically aid towards the improvement of your credit, as long as the debt has been paid, even if late, you will find an improvement in your credit, but remember you may have to notify the credit agency involved that the debt has been settled.

(2) Make payment arrangements

Instead of leaving those debts in the closet why not make payment arrangements with the loan sources, even if its a small sum each week it helps keep your payment record on track aswell as preventing further late payment charges and or court action.

(3) Do not apply for any further credit

Applying for further credit will only leave your credit file in more tatters, borrowing lumps of money to pay of other debt will only dig you deeper and deeper into debt. The best thing you can do is avoid applying for further credit, every application you make that fails will leave a footprint on your credit file, this footprint will show other lenders where and why you were refused.

(4) Obtain a copy of your credit file

If you have problems with credit and or credit companies, then why not obtain a copy of your credit file from our Mortgage website. You can pay a small fee to receive your credit file which will contain all your past credit and the status of unpaid loans/bills etc. Using your credit file you can begin arranging settlements of debts, remember a key fact, a lender would rather receive a

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It’s sometimes surreal to think that in the institutional Lending industry that most people are reduced to the 3 digit number known as the FICO score. As cold as it might seem at times it is “objectively” the most fair and quickest way to determine the acceptable risk level of a borrower.

I’m an “insider” that looks at credit reports all day. I’m here to tell you what is wise credit use, what’s B.S., how accurate a FICO score is and the best ways to optimize your credit so you may get financed for the Home of your dreams

FICO score and credit reports play a big part in the home loan application process, but this does not mean that potential homebuyers with a less-than-stellar credit history cannot get a mortgage loan. Many mortgage lenders work with bad credit mortgage applicants. These bad credit applicants could oftentimes receive higher mortgage interest rates.

Mortgage lenders use credit reports to determine the amount of the mortgage loan and mortgage rate, as well as other mortgage conditions and terms that they will offer the homebuyer. Usually, the better the credit, the better the terms mortgage lenders would be able to offer. Mortgage refinancing options are also dependent on the homebuyer’s credit reports. There are three major credit reporting agencies: Experian, Equifax, and Trans Union. Homebuyers may obtain one free credit report from each of these agencies every 12 months. Mortgage lenders typically look at a merged report from all three agencies.

The credit reports list the homebuyer’s history of accounts including credit card, student loans, and real estate loans. They also list auto financing plans, child support, charge offs, and other financial accounts. The reports supply information on each account, such as when the account was opened, what the current balance is, what the highest balance was, and when each past-due payment was made. If the account was closed, the reports will give the date it was closed and supply a reason if necessary.

The reports also contain public records such as bankruptcy and foreclosure. Bankruptcy information stays on the records for 10 years. Account information stays on the records for seven years after the account is paid off. The information in these reports is not completely current or it is one to three months behind the date the reports are created.

Based on this information, the potential homebuyer is assigned a credit score ranging from 300 to 850. This credit score is often known as a FICO score, named after the Fair Isaac Company that came up with this method. A lot of factors can affect the score. Late payments on the accounts and unpaid debts lead to a record of bad credit and lower the credit score.

A credit score of 720 or above is likely to yield the best interest rates. Typically, the minimum score for mortgage lenders to approve a 30-year fixed-rate mortgage with a reasonable interest rate is 620. Potential homebuyers with bad credit will probably have scores lower than this. These homebuyers can try to repair their credit and increase their credit score.

To repair credit, experts recommend that homebuyers submit all payments on time and pay off all overdue debt. Of course this is common sense. Some of the not so common sense approaches are the following.

1. Keep all revolving debt (credit cards) below 50% (or below 33% is even better) of the Total credit limit; spread it out across different accounts if you must.

2. Never Close out accounts after they are paid off just don’t use them (this has to do with utilization ratios of available credit) If you must close accounts always close the newest accounts first and leave the older well established accounts open

3. Stay away from lending sources that are considered “Finance” companies. It seems that these types of loan sources can actually hurt credit scores in some instances.

4. Dispute inaccurate info on all 3 of your credit reports as well as with the actual creditorsPreferably send a dispute to the creditor first, wait a week and send a dispute for the same account to the Credit reporting agency reporting the inaccurate info.

5. Do not constantly take actions that have your credit pulled like applying for too much credit. Too many credit inquires severely impact your FICO score

If you are going to play the loan and credit game and plug yourself into the system of “institutional lending” you have to play by the rules of the game that are established by the lending and credit institutions. As ugly as that may seem sometimes this is the world we live in. The good news is there are ways for anyone with any credit rating or FICO score to get financed for what ever they want. Albeit sometimes it requires some credit repair and fico score recovery.

The process to recovery is a long one, but it is worth going through in order for homebuyers to obtain a good home mortgage loan. For homeowners who cannot wait out the long process of credit repair, getting a mortgage loan from a lender that deals with bad credit mortgages could be a good option.I just happen to know Many sources that cater to just that needFeel free to contact me with your questions and concerns I am here to serve YOU

Copyright 2006 Keith John Gill

Keith Gill is an Experienced Lending and credit specialist serving his customers with the highest amount of Customer Service http://www.MyFicoCreditRepair.com

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Saving up money for a down payment can seem impossible, especially if you have credit issues that you are trying to clear up. Fortunately, there are lenders who are willing to give you a bad credit mortgage that requires no down payment.

No Down Payment Mortgage Loans

There are essentially two types of mortgage loans that you can get with no down payment. The first is a 100 percent mortgage loan. This loan is preferable, because it provides you with 100 percent of the financing that you need to purchase a home. The second type of loan is an 80/20 mortgage that finances your purchase with two loans. An 80/20 loan is much more common and is typically easier to obtain than 100 percent financing.

Qualifying for No Down Payment Mortgage Loans

If you have bad credit, you will increase you chances of approval by dealing with a lender that specializes in bad credit mortgages. These lenders are experienced in obtaining financing for people who have credit problems. They will be easier to work with and will offer you rates that other lenders may not be willing to provide.

When it comes to no down payment mortgage loans, each lender will have their own criteria for determining which type of loan you qualify for. With 100 percent financing, most lenders require a credit score of 600 or higher. If you choose 80/20 financing, you can usually qualify with a credit score of 560. To find a no down payment mortgage loan, try using a recommended lender of www.abcloanguide.com.

Applying for No Down Payment Mortgage Loans

Before applying for a mortgage loan, you should check your credit report to determine what your credit score is. If your score is lower than you thought it would be, you can try to raise it. You can also dispute any errors or old negatives that you find on the report. Mistakes can sometimes happen. Clearing them up before you apply for a no down payment mortgage loan will give you more financing options.

See ABC Loan Guide’s list of lenders for Buying a Home with No Money Down, along with a list of reliable Mortgage Lenders for Poor Credit.

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