Wednesday, August 8th, 2007 at
11:00 am
Many people will have the experience of facing financial difficulties at one time or another for a variety of reasons. Being a little short of money can result in you falling behind with bills, bank loans, credit cards, mortgage repayments and alike.
This in turn can lead to having defaults, County Court Judgements (CCJs) and even bankruptcy. Even if the problems are short lived they can still tarnish your credit record and make it difficult for you to obtain finance.
There are no accurate figures on the amount of people that get turned down for a mortgage from a high street lender, but it is widely estimated that it is about 1 in 5. Generally this is due to minor misunderstanding and can often be resolved. But even after this it is estimated that one in eight people will not be able to get a main stream mortgage and have to go to a specialist lender.
Why Do People Get Turned Down For Credit?
There are a number of reasons and situations for which someone will be turned down for a mortgage. It may simply be that the applicant has put down some incorrect details on the application form. Another reason might be that your previous landlord did not bother to confirm that you used to pay the rent on time.
Another more serious reason that people get turned down for a mortgage is that they do not have enough credit points. When you apply for a mortgage the lender will carry out a credit check on you. Read the rest of this entry
Thursday, August 2nd, 2007 at
9:31 am
There are any number of reasons that you could end up with poor credit and not all of them come from being lazy or cheap. A bad accident or illness, hospitalization, the loss of a job or bad choices in a your younger years could all be the basis for having bad credit in your adult years. The events might have happened years ago and the you may have since repaired their ailing credit; however that stain remains and makes future purchases difficult. Now that you're older and wiser you find that you want a new home. Can you buy a new home with your bad credit?
The easiest way to own a home with poor credit is to try your best to get your credit back on track. If you can pay 2% less on the mortgage loan interest rate, you will be saving over $70,000 throughout the years.
The first thing is to order a free credit report and to go over it with a fine tooth comb. If you find any disputes that you want to take up with creditors, dig up your receipts, and write some letters trying to straighten out whatever is being falsely claimed. The law states that the credit agency will have to address the dispute within 14 days or they will have to remove the disputed item completely.
After all of your disputes have been settled, you should insist that there be a new (and corrected) report sent out to all of the creditors who have received your report in the last six months. The process of having the corrections sent out is laborious, but it could mean a greater chance of you owning your own home, so be persistent. Read the rest of this entry
