Poor Credit Home loans
What to do if you have an insufficient or poor credit history
Getting credit can be somewhat of a ‘Catch 22’ situation. To be approved for loans, credit cards and mortgages, you need to prove that you are responsible with your money and have been shown to repay your debts on time and without exceeding credit limits or spending beyond your means. Yet, how do you show this if nobody will approve you for credit in the first place?
If this scenario sounds familiar, take heart in the fact that you are by no means alone. It is estimated that almost 55 million people in the United States currently suffer from the same problem of not having enough credit history to prove themselves credit-worthy.
And having poor credit, or not having a full credit history, does not automatically mean that you are not good for the money. Of course, some people just don’t generate enough income to ever receive credit, but a large number of people simply don’t need it and are wealthy enough to fund their lifestyles without any financial assistance.
But even this category of individuals will find that when it comes to purchasing a house, if you have poor credit home loans can be virtually impossible to come by - no matter how much money you have in the bank or how little debt you are in.
So, if you find yourself in this situation, what should you do?
To get a good enough credit score to be approved for a home loan or mortgage, you will need to build up a credit history. If your poor credit history means that this cannot be done via credit cards or small bank loans, try joining a music cub or order items through a clothing catalogue. Basically, getting credit through whatever means will help to get your credit history up and running, and within six months you may be eligible to apply for a home loan. Please be aware that acquiring credit is important but provided you are not getting yourself into debt and are confident that you can repay the money on time and as required. Getting yourself into too much debt will only have an adverse effect on your credit score; you may have built up a history but it will be a negative one!