How to Do Bad Credit Refinance

Are you having a hard time paying your mortgage? You may have heard that people with bad credit can’t get anything financed. Well that’s a myth because there are many companies that will offer you refinancing and loans no matter what your credit rating looks like. Therefore how to do bad credit refinance is not a problem. But how can one tell if they have bad credit? The major indicators of whether or not you have bad credit are the following:

  • If you have a FICO score of 620 or lower
  • In the past 12 months you have had two or more 30-day delinquencies
  • Or in the past 12 months, you have had a 60-day delinquency
  • If there has been a foreclosure or a charge off against you in the past 12 months
  • If you have filed for bankruptcy in the past 60 months or have been declared as bankrupt
  • If you’re debt-to-income ratio is 50% higher (simply stated your income can’t cover the debt expenses)

It’s best to know your credit scores before you make a decision how to do bad credit refinance any other loan. The other areas to look for are the loan amount that you are seeking, credit reputation that you have (that is your credit score and your history), and the collateral that you willing to put up (roughly the amount that equal to your loan amount), and of course the ability that you can pay back the debt. Therefore lenders always prefer lower score borrowers than those with higher scores.

Look for lenders who process loans in-house rather than outsourcing for credit refinance. This saves time as well as money. Also, look for experienced loan counselors who can give you the best advice. Some companies will also offer you the facility to check for the status of your loan online 24/7. Shop around for rates and various terms and conditions. The longer you shop, the better chance you will have of finding your ideal refinance package.

2 comments

  1. Is it possible to refinance a home with bad credit and no job?
    Heres the situation. My mother is a homeowner and has poor credit and is not employed. The house is valued at $400,000+, the remaining balance to pay off is $260,00. She has been turned down a couple of times. So is it still possible for her to refinance or any other options? Thanks.

  2. It’s great to know that there is such thing as bad credit refinancing. Sometimes we tend to do something unintentionally in the past that has affected our credit score. And thinking that there won’t be anyone else who would finance us again is a no-no. Companies who offers refinancing just need to check your application and if they think that you are capable of a loan again, then good news for you. Nice article you have here. Giving a bird’s eye-view of the topic.

    [WORDPRESS HASHCASH] The poster sent us ‘0 which is not a hashcash value.

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