2007-10-20 06:36:15 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
if you had no credit lates in the last 12months you can do FHA financing....
2007-10-22 06:34:50 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If your credit is bad, no one will want to loan you money because you won't pay it back.
They might loan it only on the value of the property, but it will be for a low enough amount that they can get their money back even if you don't pay. You can get owner occupied loans for up to 70% of the value of your property, even with no credit and no job, but the interest rate will be 11-18%. This is from a hard asset (Hard Money) lender.
It is the reason why good credit is a powerful thing to have, while bad credit is something to avoid at all costs.
2007-10-20 13:44:35 · answer #2 · answered by rlloydevans 4 · 0⤊ 0⤋
The reason they won't extend credit to you is you have a bad track record of repayment.
Instead of taking on more debt, work on cleaning up your credit history. Make yourself a strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, etc. Put every penny you can squeeze out of that budget on your highest interest rate credit card, while making minimum payments on everything else. When the highest interest rate credit card is paid off, move to the next till all your credit cards are paid in full. Then only charge what you can afford to pay in full each month.
This will improve your score. Carrying more than 50% of your limit on credit cards kills your score.
Get a copy of your credit report (AnnualCreditReport.com). Dispute any errors with the credit bureau. Start working on cleaning up the negatives. Start with the newest one and work back to the oldest.
If you're in collections, you can probably settle for 50% to 75%. Lump sums get the best deals. Payment plans have to be short term. You can ask that the negative be deleted. Get any settlement agreement in writing and don't give them access to your bank.
In about 2 or 3 years, you could have a decent payment history and credit score, not to mention better financial management habits.
2007-10-20 13:46:10 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
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2007-10-20 13:56:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
b/c your bad credit shows a bad track record of paying back loans.
2007-10-20 13:42:31 · answer #5 · answered by billie b 5 · 0⤊ 0⤋
Because your credit is really bad.
That is the reason you cannot get a loan.
2007-10-20 14:26:32 · answer #6 · answered by StephenWeinstein 7 · 0⤊ 0⤋