Having a low credit score prevents a person from obtaining new credit. However, if one’s roof is leaking and he needs to fix it, there are home improvement loans for people with bad credit.
Pittsfield, MA -- (SBWIRE) -- 06/25/2013 -- Real-estate-yogi.com is here to share what it knows about home improvement loans for poor credit, including:
- Increasing a Credit Score
- Securing the Loan
- Co-Signers can Help
- Search High-Risk Lenders
Improve a Credit Score
Before applying for home improvement loans with bad credit, take some time and repair the credit score. If it is under 600, it’s wise to mend it for a better chance of approval. A better rating will help lower the interest rate a lender will assign. To fix a credit score, obtain credit reports from the major reporting bureaus. If there are any errors on them, write letters of dispute. If the bureaus agree with the complainant, they’ll remove the items, improving a credit score.
Home Improvement Loans With Bad Credit, Get Started Now!!
Get Some Collateral
Making a credit score better is very helpful when looking for home improvement loans for poor credit, but it may not be enough. The lender may require collateral to secure the loan. Such collateral could be one’s vehicle title, an electronic system, or some antique jewelry. If one has any equity in his home, he should look into a home equity loan to make the necessary changes for the better. Even with poor credit, if there is enough equity, he could get a decent amount of money.
Bring a Co-Signer
A low credit score makes lenders wary of approving home improvement loans for people with bad credit. Even if one offers collateral, if it isn’t worth the amount he is asking for, he’ll need a co-signer. A co-signer is a person whose credit rating is excellent and who will take over the payments for one’s loan if one cannot handle the payments. The idea is that the co-signer will “lend” one his strong credit rating, but the person requesting the loan is the one who should repay it.
Look for High-Risk Financers
Many traditional lenders refuse to offer home improvement loans for those with bad credit, so these folks might want to research high-risk lenders. These are financers that specialize in tough loans. The interest rate one will pay on a loan from such a lender will be high, but over time, it can come down if one makes timely, full monthly payments for a time.
About Real-Estate-Yogi.Com
http://www.real-estate-yogi.com is a reputable, no-cost website located in Pittsfield, Massachusetts whose mission is to bring together those who have realty-related questions and the experts in the field who can provide them. For a free consultation, dial 1-800-987-1397.