What do you do for a credit repair loan?
Believe it or not, you have quite a few options for loans. Depending on your specific situation, there are a number of options that are open to you.
I will do my best to give you different credit repair loan options in hope that you will find one that fits you specific situation. However, The first rule of thumb is to ”know before you go,” and the second rule it “shop around."
Before you enter into any loan situation or even inquire, find out what your credit scores are and what your credit reports look like. Sometimes lenders will use your credit score as a means of bargaining, so go in prepared.
Why? Because the credit issuing agency can charge higher interest rates when working with lower credit scores. A lender without integrity may tell you that you can’t get a loan anywhere else.
So, again, not only know your score before you go but also go to more than one lender.
Some people think that going to numerous lenders will hurt a credit
score, however, as long as you do it in a short period of time, your
score should be fine.
Adding a extra points to the interest rate
can add up to extra profits for the lender and cost you in the long
run, especially if you feel vulnerable and are ignorant about your own
information.
If you research your own information, lenders will
know that you are well informed of your finances and will be less likely
to take advantage of you, saving you money.
It might be
worthwhile to let the lender talk about your credit score before you
produce your information as this will be a good way to decide whether
they are trustworthy and whether you want to do business with them.
If
you have a decent score you can ask them for better rates based on the
information contained in your credit reports and scores. Remember that a
slight decrease in the rate of interest can save you money over the
life of a loan. The money is always better in your pocket than in the
lenders.
Reputable lenders will provide you the information that will match the information you already have. However, there are times when it doesn’t, that doesn’t mean the lender is trying to pull a fast one. It does mean that you need to ask more questions to determine why the information doesn’t match and why there is a variance.
One more thing, you can have the lender refrain from checking you credit...at least initially,... by sharing your reports and scores with them so they can give you an estimate. In the long run, you will eventually have to have them run your credit for their records if you do pursue a loan with them.
Now that you have a bit of background. Here are some options for credit repair loans:
Not all states have this where you purchase the home from an owner while the owner is the one responsible for any bank loan.
Where you put collateral down - money or property - against the loan. A great credit repair loan option for increasing your score.
If you have challenged credit, FHA backed loans work with potential borrowers with lower credit scores.
Use someone with good credit to help you with your loan.
Higher interests rates but a potential option.
You lease a home from an owner and put money down on the option to buy it.
A lender will loan against the value of a property, few questions asked, high interest rates.
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