Forget About Bad Credit VA Home Loans and Improve Your Credit Scores Instead
Unless you are willing to pay some huge interest rates when a loan’s repayment date is due, a bad credit VA home loan may not be your ‘thing’. In fact, because of the huge interest rates often charged on any type of loan taken by people with bad credit rating, there may be only two alternatives to getting money to set up a home: improve your credit scores to qualify for a loan or create an employee work plan to make your own money for the housing project.
Employee work plan
Even if you are self-employed and earning $1,000 a month, there is no guarantee that you will ever have enough money to build yourself a better house soon. Unless you are willing to squeeze your budget tight, this trick might not work for you. Besides, you still have debts to clear, so this plan is going to be completely useless.
Improving your credit scores
Improving your credit score is actually the only option that makes sense as far as the VA home loan is concerned. Although you can go ahead and just take a bad credit VA home loan, you should think of improving your scores first to get better interest rates on the loan in question. Below are handy tips to help you improve you credit scores.
Tip #1
Don’t let fake identity or records screw you up
Confuse identity could land you into shit. Or, just imagine the power of incorrect information on your profile. Won’t this create a bad picture about yourself, or, even worse, destroy your reputation? The solution here is dispute; you need to dispute the old, negative, untrue and irrelevant information on your credit history. In fact, once you dispute, the lender will remove the negative item from your scores. This will not only qualify you for a loan at somewhat a good rating, but also it will improve your credit scores.
Tip #2
Pay Debts
It is highly likely that the inability to clear debt(s) is the reason why you have bad credit scores in the first place. This, if anything, will have a negative impact on the VA loan application process. So, improve your credit history and lift your loan borrowing limits by paying off debts. Again, paying off debts is one of the best ways to improve your credit ratings.
Tip #3
Dispute illegal credit report
Have you reviewed your credit report lately? Do it. Check if there are any errors or omission. Report any info in the record that isn’t rightfully yours. It isn’t fair to have negative records in your sheet, when you totally have no idea where the information came from. In fact, if there are accounts missing or any information missing, make sure they are added immediately.