How To Get 100% Financing If You Have Bad Credit By Jon Arnold Having good is something that people need to work at consistently, and in today's world, very few people have taken the time and effort required to have perfect credit. But even worse, many people do not realize how important their score is, and are very lax about making sure it even ranks as high as "good". And of course, there is a large percentage of the population who have genuinely bad credit.
The problem with looking at someone with "bad" is that you cannot make a determination that they are bad people, not even close. The bad reputation has no bearing on how that person is when you look at the person. There are almost an infinite number of extremely valid reasons why a person might have bad credit, such as a job layoff, large medical bills, scammed in an investment, a victim of identity theft, hosed in a divorce settlement, and too many more things than can be listed here. The key point is that most of these things are out of that person's direct control, and therefore cannot be used to judge the PERSON who has the "bad credit" label.
This is particularly true in the mortgage market, since the amount being financed usually runs well into 6 figures, even for a modest home.
But the reality of it is that even with less than perfect credit, many lenders are beginning to take a second look at the person applying for the loan, and taking a much longer and deeper look at them than they ever have before. These lenders realize that a label of "bad credit" does not even come close to telling the whole story. For example, when a person has gotten behind in bills due to a job layoff or large medical bills, that situation corrects itself after a period of time, where that person once again becomes a good financial risk, and that happens much sooner than the ability of the bureaus to have it reflect via that person's score.
But one of the things you need to take into consideration is that YOU, the consumer, needs to take action to get this "bad credit" misconception cleared up. The first place to start that process is to get a copy of your report, and make sure you get a separate copy of it from each of the three major bureaus, which are Equifax, Experian, and TransUnion. Each of them keeps their own set of records on your complete history, and as a result, NONE of them have a truly complete picture of your history. Sad but true.
The big reason that you want to get a copy of your report from them is because you are going to go over your report and note the ERRORS. Studies have shown that the majority of consumer's reports contain at least one inaccuracy, and
if you do not bring this error to the attention of the bureau who is reporting it, that error will continue to be reported, year after year, every time you apply for credit.
The detrimental effect this has on you is that you will have a harder time in getting rid of that "bad credit" label, and with erroneous information being reported, your score will be calculated lower than it should be.
Once those errors are cleaned up via your disputes with the bureaus, you are well on your way. With a clean report, there are many lenders who are willing to provide 100% financing for your loan, even on a mortgage. The cleaner your report is or the longer it has been since the last blemish, the easier time you will have with this.
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