When you have bad credit, the number of lenders who will give you a loan for a house can get very small. You should do everything you can to make sure your credit score stays as high as possible.
Many people hurt their chances of getting approved and make it harder for themselves without realising it. Here are three things you should not do if you already have bad credit.
- Don't be late on your current payments. Some people think that since their credit score is already bad, it doesn't matter if they pay on time now or not. That's not true. Every time you make your monthly payments on time, your credit score goes up a little.
- Don't open too many new credit accounts. If a lender sees that you have a lot of new accounts, they may be hesitant to lend you money. It can also make it harder, if not impossible, to get approved because your debt-to-income ratio will go up.
- Don't let different lenders pull your credit over and over. Because it's hard for them to get approved, many people apply with many different brokers, who then pull their credit over and over. When someone checks your credit, your score will go down by a few points. Sometimes, it can be enough to keep you from getting the loan. The best thing to do is to apply online with companies that will give you a pre-approval without pulling your credit, but instead ask you what your credit is like.
Visit http://www.abcloanguide.com/lessthanperfectcredit.shtml to see our list of online mortgage lenders for people with bad credit. Most of them do not check your credit when you first apply.
