What to Do If You Have a Bad Credit History
Do you have to go without a new car because several years ago you missed a few payments on your credit card and you now have a bad credit history? Are you unable to get a mortgage for that new house you've been dreaming about? Having a bad credit history can definitely be a problem.
But, there are also some ways to get what you want or need, even if you have bad credit.
Having bad credit does not have to be a permanent condition.
You can work to rebuild your poor credit by acting responsibly in the future.
You should get copies of your credit reports from the three major credit reporting agencies and go over them carefully.
If there are any negative marks that were put there in error, you have a right to dispute them.
Further, certain procedures must be followed by creditors and credit reporting agencies before they can make a negative notation on your credit report.
Check into these matters yourself or hire a professional to help you repair your credit.
While you have bad credit, you will find it very difficult to get financing on any major purchase.
Qualifying for a mortgage may be possible, but, rest assured, you will pay a higher interest rate and be given less favorable terms.
A way to get around bad credit and get a mortgage is to have a substantial downpayment of at least 20% or more of the purchase price.
That way, a bank or other lending institution will have some confidence that you won't default.
The larger the downpayment, the more apt you are to get a mortgage at a competitive market rate.
Other factors like a steady source of income and a strong work history will also influence the chances of getting a mortgage.
When you apply for a job, many employers will check your credit history.
A person with a bad credit history may be passed over for another equally qualified applicant that does not have that blemish on their record.
The best thing to do during an interview is to be honest and explain your financial situation to the interviewer.
Hopefully, you have a good explanation (ie.
you were hospitalized and out of work for two months and fell behind on your bills).
Better to be honest and just admit you made some mistakes when you were younger, than to let them find out you were a "deadbeat" just because you did not take responsibility.
But, there are also some ways to get what you want or need, even if you have bad credit.
Having bad credit does not have to be a permanent condition.
You can work to rebuild your poor credit by acting responsibly in the future.
You should get copies of your credit reports from the three major credit reporting agencies and go over them carefully.
If there are any negative marks that were put there in error, you have a right to dispute them.
Further, certain procedures must be followed by creditors and credit reporting agencies before they can make a negative notation on your credit report.
Check into these matters yourself or hire a professional to help you repair your credit.
While you have bad credit, you will find it very difficult to get financing on any major purchase.
Qualifying for a mortgage may be possible, but, rest assured, you will pay a higher interest rate and be given less favorable terms.
A way to get around bad credit and get a mortgage is to have a substantial downpayment of at least 20% or more of the purchase price.
That way, a bank or other lending institution will have some confidence that you won't default.
The larger the downpayment, the more apt you are to get a mortgage at a competitive market rate.
Other factors like a steady source of income and a strong work history will also influence the chances of getting a mortgage.
When you apply for a job, many employers will check your credit history.
A person with a bad credit history may be passed over for another equally qualified applicant that does not have that blemish on their record.
The best thing to do during an interview is to be honest and explain your financial situation to the interviewer.
Hopefully, you have a good explanation (ie.
you were hospitalized and out of work for two months and fell behind on your bills).
Better to be honest and just admit you made some mistakes when you were younger, than to let them find out you were a "deadbeat" just because you did not take responsibility.
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