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About Bad Credit Remortgages

By Edited Jun 6, 2015 1 1

Bad credit remortgages might be sought by people for any number of reasons. Perhaps you merely need to consolidate some debt and want to use a bad credit remortgage to do so. Or you may simply want to attempt locking in that lower interest rate. No matter what your reason is, obtaining a bad credit remortgage might feel like an intimidating task. By the time all is said, and done, however, it is usually easier than anticipated.

Based on the fact that you are looking into bad credit remortgages, it follows that you at least suspect your credit is poor or know for sure that your credit history is less than perfect. You need not worry about a bankruptcy prohibiting you from qualifying when you apply for that bad credit remortgage. You should still qualify for the loan if your bankruptcy occurred more than 2 years ago.

A mortgage lender views it this way: the lower your credit rating, the higher their risk is when they lend you money. You may not be quite sure what your credit report reveals about you or what your credit score actually is. This is true with a lot of people, unfortunately. You can obtain your own credit score and credit report from any or all of your country's credit bureaus or credit reference agencies. In the United States for example, the three major credit bureaus are Equifax, TransUnion, and Experian all of whom are obligated by US law to provide you a free copy of your credit report once every twelve months upon request.

Of the utmost importance is comparison shopping for bad credit remortgages before you make your final decision. The reason this is true is that some lenders are capable of offering you better rates over the competition. Considering your bad credit, it will be tempting to pounce on the very first offer that comes along. Realize that the first offer is not necessarily the best, so patiently shop around prior to making your choice.

It is a good idea to utilize a mortgage broker if you plan to obtain a bad credit remortgage. You will have a greater chance of finding a lender who says "yes" to your loan because brokers propagate your information to many different lenders, which is generally more helpful and increases your chances of acceptance. If you merely seek out one lender that means you have but one chance, which can be a frustrating waste of your time. If you are committed to shopping for bad credit remortgages, understand that you will most likely need to go to several lenders prior to finding one or more willing to grant your loan.

Suppose that your credit is so extremely poor that you're unable to find anyone to grant you a loan. You will be happy to know there's still another option for getting a bad credit remortgage. Perhaps your bad credit resulted from unlucky circumstances which you could not control. If so, it may be possible to get a willing family member or close friend to be a co-signer on your loan. This is a win-win since the remortgage allows you to see improvement in your credit while your lender rests assured another individual possessing good or great credit is backing you in case of any troubles. Having a co-signer can also result in you obtaining a better interest rate than you would have received on your own.

You must conduct careful research on the brokers or lenders you are considering prior to giving them a single piece of your personal information. This is especially true for bad credit remortgages as there are predators who try to take advantage of those seeking help. There are a number of existing scams preying on folks with bad credit. The old adage about things that sound too good to be true applies. You need to make certain that you have checked references such as the Better Business Bureau as well as reading all of the fine print from any literature you've obtained. You don't want to make matters worse by digging a deeper hole and delaying any possibility of obtaining a loan for an even longer period of time.

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Comments

May 28, 2010 3:21pm
kims3003
Very very true. Nice article
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