How to Refinancing With Bad Credit

Even if you have a bankruptcy, foreclosure, repossessions or other issues to make your credit score low, you may be able to get bad credit refinancing. Unfortunately if you do have bad credit and a low score, the mortgage interest rate you get will be higher than others and you will have a limited choice of lenders.


When you first decide to buy a home you not only have to find the home you want but you need to find the right mortgage. This could entail contacting several lenders and getting their mortgage loan requirements. If you are looking to refinance and your credit is not great, you need to concentrate on finding a mortgage broker. Mortgage brokers partner with lots of different lenders. These brokers know how to find poor credit lenders to make sub prime loans. They match up your credit information with the lenders requirements and find the best loan for you.

To find a mortgage broker you can either go online or check your local yellow pages. Both have access to many different types of loan programs. Applying online is usually the easiest and fastest but some people are still wary about transacting business online. It is true that you don't know who you are dealing with but online transactions are becoming the norm.

An online broker will look at your information, such as credit rating, income, debts, the proposed loan amount, and the amount of equity in your property, then do the initial search for matching mortgage lenders. Usually you can receive up to three or four quotes from lenders without having to leave your house.

Don't expect to get great rates if you have bad credit. It comes down to the amount of risk a lender is willing to take. Before you apply for a loan you need to make your credit report look as good as you can. Get a credit report to make sure all your information is correct. Each year the three main credit reporting agencies will give you a free credit report. You can also get free reports and scores by signing up for credit monitoring services which might be a good idea while you are trying to improve your rating. Pay your bills on time, pay off what bills you can. Make sure all your accounts are in good standing but don't close any of them.

Don't lose hope. As long as your credit rating is higher than 550, you should be able to find a lender willing to give you a secured loan. It might just take a little searching. It might take some time if you have to increase your credit score. Be patient and stick to your goals.