When you’re talking about credit, you could fall from either having an outstanding credit or bad credit score. Though most people fall somewhere in between the two score extremes, what if you fall in the negative extreme? What happens?
You can have a bad credit score when your record shows failures to keep up with payments on agreed credit terms. This credit report will show up in all public records. If you think you can’t refinance with bad credit, then we’re here to tell you that you’re wrong. There are indeed ways you can refinance your mortgage with a bad rating.
Refinancing your home is the best option if you want to reclaim a good credit score. This move means replacing your current mortgage with a new loan at a lower rate. Don’t let your low credit score stay negative and start preparing for refinancing your mortgage, you can even get it at a lower interest rate than your previous mortgage.
There are several options you can choose to apply for refinancing. You can select an FHA Streamline Refinance (if the Federal Housing Administration insures your home loan), Home Equity, HELOC loans, or HARP programs. Find an excellent bad credit refinance lender like Home Refinance to know the best options you can take.
To help yourself, you’ll need to make a conscious effort to improve your credit score and control your debt if you want your refinancing application to be approved.