How to Get a Mortgage If You Have Bad Credit: Tips and Tricks
If you have bad credit, you may think that buying a property is out of reach for you. However, this is not always the case! There are many things you can do to improve your chances of being approved for a mortgage. In this blog post, we will discuss some tips and tricks that will help you buy a property even if your credit score is not perfect.
#1: Check Your Credit Report!
The first thing you should do is pull your credit report and score. I live in Canada and I can check my score right through my bank's app (Scotiabank). I also monitor my credit info through Credit Karma, which I'm loving (and it's free)! This will give you an idea of where you stand and what kinds of loans you may qualify for. You can also purchase your credit score from any of the credit bureaus - the 2 main ones in Canada are Equifax and TransUnion.
(And no... checking your credit score doesn't lower it!)
#2: Improve Your Credit Score
Once you have your credit report and score, you can start working on improving your credit. One of the best ways to do this is to pay at least the minimum balance on time every month. This includes your lines of credit, car loan, credit card payments, etc. You should also try to pay down any debt that you have as this will improve your credit utilization ratio. It's also a good idea to keep old cards and accounts open even if you aren't using them, because unused credit will lower your credit utilization ratio and a longer credit history is favourable.
Another thing you can do to improve your credit is to sign up for a credit monitoring service like Borrowell, Credit Karma, Mogo, Equifax Canada, TransUnion Canada. This will help you keep track of your credit score and see areas for improvement. This can be a great way to catch any mistakes that may be dragging down your score.
#3: Consider a Cosigner
If you are still having trouble getting approved for a loan, you may want to consider finding a cosigner. A cosigner is someone who agrees to sign the loan with you and be responsible for the debt if you cannot make the payments. This can be a family member or friend. Just make sure that you choose someone who has good credit and is financially stable.
Following these tips, you should be able to get approved for a mortgage even if your credit score is not perfect. Just remember to stay patient and keep working on improving your credit. Soon enough, you will be able to buy the property of your dreams! Thanks for reading! We hope this was helpful. Please share this blog post with anyone you know who may be in a similar situation.
If you need any help, Please feel free to contact us. Until next time!