Refinancing With Bad Credit Is Possible
This is just a few strategies to help you get out your financial life back on track and refinance with bad credit. You will see that a few of these need to be implemented over a long period of time to be effective. Most likely the financial difficulties were created over a long period of time, so it is only fair to assume that the fallout will take a while to be eliminated as well. It might be necessary to show you can make payments over a period of time to utilities and other existing loans so you can show financial institutions that you are a low risk.
Don't underestimate appearances and the importance of stability in your life, such as the land line telephone. A land line phone shows you can maintain a stable life and make payments to a utility on a monthly basis without your phone being disconnected. Some banks will look askance at you when they find out you only have a cell phone. I know that this works well and even reduces monthly payments. On the other hand having just a cell phone is perceived as temporary and transient. This is not the impression you want to convey if you need to refinance with bad credit.
Similarily, it looks much better on applications for loans or even job applications if you have lived at the same address for at least 6 months than if you move a lot. It will be understood if you needed to move, although you can still show your previous address that you were at for a reasonably long period such as eight months or two years.
Another very good tactic is to save up a large down payment to show the bank you mean business. The more money you have on hand, the better your ability to refinance with bad credit will be. In many cases it doesn't matter if you saved the money yourself or if you borrowed it off Old Uncle Frank. The main thing for the bank will be that you are showing a large commitment and their risk is also lower.
Banks and lenders look for the traits of reliability and dependability. They want to know that their investment in you is safe and there will be no troubles getting their funds back plus interest. How can you give them such an impression? It is important to wear good clothes, get all of the necessary information collected beforehand such as employment records, and arrive on time for appointments.
You might be able to get someone you know to furnish you with a character reference letter. If you can think of an employer, family friend or other respected individual that can vouch for you in writing, then approach them to see if they will be open to writing you such a letter and helping you refinance with bad credit this way. While this doesn't guarantee to the bank that they will be able to trust you, it does help the overall case that you are a reliable individual.
There are many other ways to refinance with bad credit. Hopefully these tips will set you in the right direction. Good luck in your financial journey.
Don't underestimate appearances and the importance of stability in your life, such as the land line telephone. A land line phone shows you can maintain a stable life and make payments to a utility on a monthly basis without your phone being disconnected. Some banks will look askance at you when they find out you only have a cell phone. I know that this works well and even reduces monthly payments. On the other hand having just a cell phone is perceived as temporary and transient. This is not the impression you want to convey if you need to refinance with bad credit.
Similarily, it looks much better on applications for loans or even job applications if you have lived at the same address for at least 6 months than if you move a lot. It will be understood if you needed to move, although you can still show your previous address that you were at for a reasonably long period such as eight months or two years.
Another very good tactic is to save up a large down payment to show the bank you mean business. The more money you have on hand, the better your ability to refinance with bad credit will be. In many cases it doesn't matter if you saved the money yourself or if you borrowed it off Old Uncle Frank. The main thing for the bank will be that you are showing a large commitment and their risk is also lower.
Banks and lenders look for the traits of reliability and dependability. They want to know that their investment in you is safe and there will be no troubles getting their funds back plus interest. How can you give them such an impression? It is important to wear good clothes, get all of the necessary information collected beforehand such as employment records, and arrive on time for appointments.
You might be able to get someone you know to furnish you with a character reference letter. If you can think of an employer, family friend or other respected individual that can vouch for you in writing, then approach them to see if they will be open to writing you such a letter and helping you refinance with bad credit this way. While this doesn't guarantee to the bank that they will be able to trust you, it does help the overall case that you are a reliable individual.
There are many other ways to refinance with bad credit. Hopefully these tips will set you in the right direction. Good luck in your financial journey.
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posted by Credit Counseling at
12:57 PM
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