They say that home is where the heart is… But there’s a whole lot more to it than that. For many, a rented house or apartment, however well appointed it may be, however tastefully decorated and however ideally located can never truly feel like home. Sure, renting affords us great freedom and the luxury of knowing that if something goes wrong, it’s the landlord’s problem and not ours, but this is hardly adequate compensation when the old familiar nesting instinct kicks in. A rented home never truly feels like our own. We can’t put our own decorative stamp upon it, we can’t make any renovations or refurbishments. Some landlords will take exception if we so much as hammer a nail into the wall to hang a picture. And if you want to bless your home with a dog? Forget it!
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Yet, for many, renting is the only choice especially those for whom their credit score is less than stellar… Or so we may assume. If you’ve too long labored under the yoke of bad credit, there are options available to you to turn your rating around and get a mortgage on the home of your dreams…
Know your credit rating and what it means
Before you can take steps to improve your credit rating it’s important to know what is a good credit score and what factors influence it. The 5 factors that make up your credit score are as follows:
- Payment history- How well you’ve been able to pay back your existing debts.
- Total debt- The aggregate amount of all your debts.
- Credit history– How well you’ve managed previous debts.
- Recent credit– How much a lender agrees that you can borrow.
- Credit types– Not all types of credit are equal. A student loan is not looked upon in the same way as a commercial loan or a credit card.
Find the right financial product for you
As with any loan, it’s important to make sure that you’ll be able to pay it back alongside your other composite living costs. While there are mortgage products designed specifically for customers with bad credit they come at a price. They will carry higher than average interest rates and require significantly larger down payments. If you’re unable to find a product that works for you, your best bet may be to rectify your issues…
Consolidate your debts
Juggling multiple debts can be stressful and hard to keep track of, especially when they all have different rates of interest and repayments are taken out variously throughout the month. Consolidating all of your debts into a loan with a single monthly repayment is not only favorable in terms of interest, it will also improve your credit rating as all of your debts are effectively paid off and replaced with a single new debt.
Or… get a credit builder credit card
If a consolidation loan isn’t right for you, you may fare better with a credit building credit card. So long as you are able to pay off your debts on it in a timely fashion it will make your credit rating incrementally more favorable over time.
With the right product and a little diligence, owning your own home can go from an unattainable pipe dream to a palpable reality.
She has a B.S.Ed. in Secondary Education/English and a Spanish Minor. In addition, she holds a Certificates in Natural Health and Herbology from accredited programs. She pursued these natural wellness certifications due to her love for herb gardening.
Despite freelancing to make a living, her love is "all things home."
Deborah grew up in a family that grew a large vegetable garden and a fruit orchard, helping her parents pull weeds and can home-grown foods as part of her childhood. In fact, she had no idea that she could purchase veggies and fruits in pre-packed steel cans until she went to college and made a food run.
Today, she lives in Bertie County, North Carolina, an agricultural rural area with more chickens than people. She lives with her husband and two rescue pets a sweet toy fox terrier and a cat who showed up one day and moved into the house. Together, they enjoy DIY projects, furniture refinishing, gardening, and canning.
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