Most of us aspire to own a home despite of any complication. We love the thought of being able to decorate our own home sweet home beautifully. We start seeing this idealized place as our only shelter in hard times. Unfortunately, for many of us, buying a home is an impossible prospect and the only drawback is victimized to ‘bad credit’. This is the only complication which create obstacle when trying to buying a home with bad credit– big deal to concern about.
Credit score have a crucial or can say important role in home buying process. Its how mortgage lenders determine your ability to borrow responsibly and most importantly pay back loan on time without intimidation. A high credit score not only qualify you for loan but will also exaggerate more scope for mortgage options. But poor credit score do worse with you where it eliminate your option to even apply for loan or consider buying a home.
Let’s discuss how you can improve your credit score to get back into the right track.
Ways to improve your credit score
If you are unable to get approved for a home loan, its high time to improve your bad credit housing for rent and turn it to good at least eligible range for having house. If you are rejected just because you are lacking somewhere in credit history, there are few ways you can still shine and get your loan approved by showing a history of responsible repayment:
- Apply for a secured credit card
- Get a co-signer
- Become an authorized user
- Pay off your loans- education, vehicle etc on time
If you have credit but its just that you ever had a terrible financial past, still there are ways you can improve your credit score and prove yourself credible. Here are those ways which you need to follow stringently without any further mistakes:
- Pay your due bills on time
- Don’t swipe more than 35% of your credit card limit
- Don’t open too many account at once
- Keep only existing or older account running
- Check your credit card statements regularly
To frame the whole narration in short, never spend or borrow anything more than your ability to pay back and make sure if you have purchased anything on credit, pay it before the last payment date. While it might take some time but at least you can stand ‘able’ to the eyes of lender and that’s what exactly matters!