Top 4 Ways To Get a Home Loan With Bad Credit Score

Posted by Liberty Financial on February 8th, 2021

Do you want to home loans with bad credit score?

If the answer to these questions is a ‘Yes,’ you are in the right place.

This blog will help you find various ways to get a home loan with a bad credit score.

Do you know how?

Read the following!

• Verify Free Credit Score

First things first, check your free credit score to see the crucial factors that are affecting it.

Following are the elements that affect your credit score:

Payment history (35%): A record if you pay your bills on time or have missed/late payments in the past.

Total credit available and how much of it you have used until now. This is called the credit utilization rate, which is almost 30%.

For how long you have been using your credit (15%).

Combination of credit types you have and are still using (10%).

A total number of credit accounts you have and applied for, which is called hard inquiries (10%).

Any errors on your credit reports are also taken into consideration including wrong personal details or accounts you have opened fraudulently. You have to dispute every information about your account, especially when it’s negatively affecting your score.

• Never pay your bill late

You paying the bill on time makes a great difference to your credit score, almost 35%. Autopay is the best way to ensure that you are never late paying your bills, for example, student loan, car loan, etc. The amount will be automatically debited from your account on the due date. This means you don’t have to keep a reminder or something for paying your bill as it will be done automatically. All you have to do is just ensure that you have enough money in your bank account to pay the dues.

• Down Debt

The amount owed more than 30% of your credit limit can affect your score. That’s why Business Loans experts suggest their customers that you must never spend more than 30% of the credit limit to get better credit scores.

You will pay the credit card bill entirely at the end of every month. In case you can’t, make a fail-proof plan to stop using your card for a short time and pay all the down credit card debt. Send extra money to the highest interest card first, which will help you to save money in interest. Or just pay a small balance, which will motivate you to pay all the balances.       

• Avoid Hard Inquiries

If you want to increase your credit score, delay applying for new credit cards. A hard inquiry happens in case when a lender checks your credit history to weigh up you for a financial product. Everything will appear on your credit report and will also affect your credit score.   

That’s how you boost your credit score to get the best Bad Credit Home Loans options.

For more information, get in touch with credit score professionals. They will lead you in the right way.

So contact one right now!