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Bad Credit Home Loans – Increase Your Credit Score for Lower Rates

Posted on | October 23, 2009 | No Comments

Bad credit home loans are often difficult to get with a low interest rate.  To get a lower interest rate on your home loan you should increase your credit score to the best of your ability.  Conventional 30 year fixed mortgage rates are currently around 4.8% and if you can increase your credit score to a reasonable number you will have much better access to rates close to this number.

If your credit score is 650 or below you are going to find it very difficult to get a reasonable mortgage rate in todays economy.  Most mortgage lenders have gotten very strict with their practices because these companies have lost a lot of money from home owners defaulting on their mortgage.  With this on their mind they do not want to offer a home loan to a risky borrower.

You would be considered very risky if your credit score is below 650.  To increase your credit score there are a few things you can do today that will help you.  The first thing you need to do is to actually find out what your credit score is.  There are many places online that you can do this so that should not be a problem at all.  Once you find out your credit score make sure to write it down.

Many people who are trying to increase their credit score write it down in places the look every single day.  This will help to remind you that you are working to improve your credit score and you really don’t need to buy the extra stuff that you really don’t need.  After you have your credit score you need to see which lines of credit you need to address first.

If you have any very small lines of credit, under $100, make sure to pay these off so you don’t have to worry about them anymore.  Then it is a good idea to pay down some of the credit cards that are very close to their max.  If you have a few cards that are almost maxed out then you will want to get these balances lowered; this should help to increase your credit score.  It is a lengthy process so do not expect your score to increase overnight.

Please check out our unemployment forum where we encourage you to post comments below whether it be a strategy you used to get a job, possible tips or links to those who are unemployed or even a rant about your previous employer and how they laid you off.  Anything goes as long as there are no obscenities or direct insults to other posters.

Unemployment Forum

Author: Heather Best

Category: Bad Credit Home Loans

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