Credit Repair Loan

What Are Your Options?

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."

Know Before You Go

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.

Shop Around

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.

Types of Loans for Credit Repair

Now that you have a bit of background. Here are some options for credit repair loans:

Land Contract

Not all states have this where you purchase the home from an owner while the owner is the one responsible for any bank loan.

Secured Loan

Where you put collateral down - money or property - against the loan. A great credit repair loan option for increasing your score.

FHA Mortgage Loan

If you have challenged credit, FHA backed loans work with potential borrowers with lower credit scores.

Cosigning Loans

Use someone with good credit to help you with your loan.

Low Credit Score Loan

Higher interests rates but a potential option.

Lease/Option

You lease a home from an owner and put money down on the option to buy it.

Hard Money Loans

A lender will loan against the value of a property, few questions asked, high interest rates.

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