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2007-06-12 07:49:49 · 4 answers · asked by Jo W1 1 in Business & Finance ➔ Personal Finance
You do not state what type of loan it is for which you are looking. I would CERTAINLY think you qualify for a HELOC, given that you have 100% equity in the property.
2007-06-12 08:02:45 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
Rebecca is right, you're probably having difficulty because you have "limited borrowing experience." It happens when you don't use credit to purchase a lot of stuff.
Lenders take a look at two things when they consider underwriting a loan. (1) Proof of income - they want to know you can pay back the money you borrowed, and (2) Credit history. This includes your credit (or FICO) score and how you've handled debt in the past. If you haven't borrowed much, you can't really have that much of a history. But you can build your history.
If you're new to the lending game, I recommend offering something as collateral. If you need a larger sum of money, say $20k and up, try for a Home Equity loan or a traditional Mortgage. These types of loans tend to have the best interest rates because your backing it up with something that is valuable - your home. If you need a smaller amount of cash to get by, consider an auto loan. You can put your own vehicle up as collateral.
To build credit, you can also get a credit card. Make a few small purchases once in a while and pay off the balance every month. Or you can take out a small personal loan. Creditors are looking to see that you make the minimum monthly payments on time. Even a loan for $1000.00 for 24 months helps build that credit up.
2007-06-12 10:35:38 · answer #2 · answered by Erica 2 · 0⤊ 0⤋
this is probably because you don't have much of a credit record. if you'd had a mortgage then the loan company would be able to do a credit check and see if you always make payments on time, or have defaulted on payments etc - this way they can judge the risk they take when lending you money. so as you bought your house outright there is no credit information available so they have nothing to show them whether you'd regularly default on payments etc.
hope this explains things a little
PS this fact sheet from experian (the largest credit reference agency in the uk) gives basic details about how credit rating works http://www.experian.co.uk/downloads/consumer/mythsV6.pdf
2007-06-12 08:51:11 · answer #3 · answered by just trying to make a difference 5 · 0⤊ 0⤋
Hi.
You can definately get a loan here:
http://bestukloans.co.nr
2007-06-12 09:07:25 · answer #4 · answered by Anonymous · 0⤊ 0⤋