Most people dream of owning their own home. It’s the ultimate goal in life – a place to call our own where we can rest our heads after a hard day. Unfortunately, this isn’t the easiest of dreams to achieve. There are many reasons that people are struggling to buy their own home and one of the most common is poor credit.
What is poor credit and how it affects your ability to find EASY home loanS?
In case you don’t know, a credit score is an individual’s personal score that represents how good they are with paying back cheap investment home loans. It is based on credit card history, loan repayment history and a number of other things. Many people have poor credit scores, for a lot of different reasons. When we’re young we don’t think about the future as much, we don’t think about the impact our spending will have on our credit scores later on in life. This means that when we come to buy our own home we find that we aren’t getting the loans that we want, all because of our poor credit scores.
Luckily, having a poor credit score doesn’t rule you out of the housing ladder forever, and there are ways that you can fix your bad credit and get the loan you want, meaning you get the house you want! Read on for how you can help raise your score.
How to improve your credit scores and get your best personal loans with guarantor
The first thing you need to do is find out your credit score from at least three of the biggest creditors in your area. Any guarantor loans will be different and it’s important to know what each score is as most home loan companies will look at more than just one. Many people find that they have errors in their credit scores which can cause their score to inaccurately represent how good they are at repaying their debts. This errors can be because of simple mistakes, or they can be because of more serious issues such as identity theft.
To start fixing your credit score, you need to dispute the questionable activity that is appearing on your credit score. You can do this by liaising with the credit agencies, and showing them proof of your spending. Make sure that you keep copies of everything that you do, including all of your spending. If the credit agencies can’t verify any of the errors then they must remove it. This could be a big step towards getting your score higher.
Once you have your new revised credit score, make sure that you have this copy to show to mortgage brokers and lenders. As well as this you will need to have copies of bank statements, payslips and any other proof of outgoings and incomings. If your credit score is low because you made a payment late for a reason that wasn’t your fault, you can always explain this to the mortgage broker in writing. They are likely to take you more seriously if you send them a letter, rather than telling them in person.