i think all lenders should come clean and stop saying people can get a lone with bad credit when they cant,?

Question

where you ever turned down for a lone.my credit rates as fair and everyone has turned me down.

i was turned dow for a house loan.

i called this lender up and told them what my credit score was and i asked this person is this a wast of time,befor i even go there,they said no.well guess what it was.they told me i need to get a credit card to get my credit up .and that i will have no problem getting one,well guess what .i keep geting turned down.i kept trying to call him to see if i can do something else.he wont answer the phone call or call me back.

Answer 1

I was in the same position a few years ago so I know exactly how you feel and how fustrating it is! Since you've been denied for credit, you should be able to get a copy of your credit report. Get one, review it and make sure it's accurate. The first loan I tried to get was for a car. I didn't have a cosigner (my family hasn't been great at managing their money and thier credit scores show it) so I had to go through American General Finance. Not something I recommend since the interest rate was OUTRAGEOUS, but it put me in a position to walk into a local bank a year later and borrow enough money to pay it off at a much lower interest rate (like 20% lower). So, you might try asking them for a very small loan and pay it off. Providian (now Washington Mutal) was the first place I found that would give me a credit card (unsecured). It was only a $500 limit, but that was all I needed to get me started. Since then, my limit has just climbed.

Good luck. I know this sucks, but once you get your score up there, you're problems obtaining credit won't be as hard.

Answer 2

I agree with you concerning the lenders. I am a loan officer in OH with a mortgage broker.

There are circumstances where people can get a loan with bad credit - the issue is 'defining the bad credit'. Is it just the score is low, bankruptcy, when was it and what type, collections (what kind), how many trade lines on the credit report, or something else? There are so many factors that go into determining qualification for a mortgage loan program that there is not just one single answer. On top of whether you can get the mortgage loan is the amount of the loan and what percentage of the purchase price you want to finance. You might qualify for a loan but not at 100% but only 80%. Maybe you qualify at 100% but have to have your own money in the transaction and not seller paid closing costs.

By now your head is probably spinning - sorry. I always have someone sit down with me, review their income, debts, what type of credit history they have, and what they are looking for first. At that point they have the option of me pulling the credit report to review their scores and report with the other information to see which lenders and programs they want to submit their file for qualification. If there isn't anything that I think I'll be able to find for them, I won't pull credit but will offer some suggestions to help them get financially ready to qualify for a mortgage. My first goal is to see if someone will qualify for an FHA program since the rate is fixed and much lower than the alternative programs.

Answer 3

I'm sorry to hear you are having trouble.

When lenders say "bad credit ok" what they mean is less than perfect credit ok. If you in fact have "bad credit" of course no one will lend to you until the time has passed that you are having difficulty.

When people who have had perfect credit get a blemish or two. They consider themselves to now have "bad credit".

When people who have never had anything but bad credit correct their mistakes for 6 months they think that they have "good credit" They are both wrong in the eyes of the lender.

A few mistakes doesn't give you "bad credit"
A few months without mistakes doesn't give you "good credit"

Go to sites like www.equifax.com and read what they have for you that is free. Then visit places like www.bankrate.com and read what they have for you to educate yourself.

Once you gather some knowledge you will better understand how you need to make corrections to get a real estate loan.

best of luck,

Answer 4

Well most companies say that so they can get all teh possible people who have credit line credet. That's when you credit is bad but not too bad. But the only way for them to know how good your credit is going into your credit report. Sometimes companies don't go by your credit score. SO next time get a credit report and see what happens. But your right once I saw a advertizement about buying a car with bad credit and they said you could get one with no credit , bad credit, it didn't matter. SO I went and came out empty-handed, so they told me that you need to listen to teh wording of the ad. What a crok.c

Answer 5

There is more to being approved for a loan than your credit rating. They also look at your debt-to-income ratio which includes what you pay for your mortgage. The ratio is actually a percentage of monthly bills based on your gross income. ie...what percent of your gross monthly income is the total of bills and living expenses each month.
...so if your debt-to-income ratio is too high (at or near the legal percentage limit) lenders will not grant you a loan or a credit card. I don't remember what the preferred percentages are but you can find it in the disclaimers on pre-screened car loan offers you receive in the mail.
Check these sites for additional information:
http://homebuying.about.com/cs/mortgagearticles/a/debt_to_income.htm
http://financialplan.about.com/od/creditanddebt/a/DebtIncomeRatio.htm