Improving bad credit score to get low interest mortgage loans

The major disadvantage of having a bad credit score is that all the bank loans would only be given at a high interest rate.Going for a bad credit mortgage loan will only make you lose a good amount of cash in the long run.Some people might even find that there are no lenders willing to give them loans.But those are rare cases.There are several poor credit lenders who are willing to give the loans to people with a bad credit score.

ways of Raising the credit score:

There are very simple ways which you can use to improve the credit score.This is a short list of ways to increase credit score:

  1. Delete the errors in the credit report – many people do not observe their credit carefully.There are high chances that it would contain some errors.Thus by finding such errors and deleting them would increase the credit rating.This is the most simple way for credit repair.
  2. Do not close the old accounts.This will have a very positive impact on the credits since it would show that you are a  person who has done regular payments without fail.
  3. Avoid the foreclosures – this is very vital.If you allow the foreclosure to happen,the FICO score is going to get severely affected.This will make getting loans in the future very hard.There are lots of solutions available to you – you need to use them properly to avoid the foreclosures.
  4. get new secured credit cards – getting these and making prompt payments to the lender would definitely have  a great impact on the credit.Remember that you need to do it regularly for a long time.
  5. Never go for delayed payments.Pay the monthly mortgage payments on time.