For most people, problems with their credit reports are likely related to late payments on a debt. If you were late one month in paying off your credit card but otherwise have a good payment history, chances are most lenders won't be too concerned. But if you have a history of late payments you'll need to document the reasons why. A slow payment history won't necessarily get you turned down for a loan, but you may have to pay a higher rate of interest or otherwise prove to the lender that you can repay your loan in a timely fashion.
ERRORS ON YOUR CREDIT REPORT
Many people are surprised to learn that credit reports can often contain errors or inaccurate information. If this is the case with your credit report, you'll need to contact the reporting agency or creditor to have the problem resolved. This can sometimes be a slow process, so make sure to give yourself time to clear up the mistake.
BANKRUPTCIES AND FORECLOSURES
There's no getting around it, a bankruptcy on your credit report is not a good thing. But that doesn't mean you still can't obtain a loan. Even though a bankruptcy may stay on your credit report for seven to ten years, lenders will often consider the circumstances surrounding a bankruptcy (family illness, injury, etc.). Moreover, if you have reestablished good credit since the bankruptcy, a lender will be more inclined to approve your application.
Credit Repair Resources
Green Path- (Credit Counseling) Green Path's mission is to empower people to lead financially healthy lives. They are a national nonprofit focused on financial wellness for nearly 60 years as their guide through financial crises: overwhelming debt, foreclosure, bankruptcy, or credit challenges. Today, they work to strengthen financial wellness at every step of the financial journey. We have partnered with them to help clients build their credit because of their track record of honesty and integrity.
Alternative Lending Options
NACA- The Neighborhood Assistance Corporation of America ("NACA") is a non-profit, community advocacy and homeownership organization. NACA's primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership. NACA has made the dream of homeownership a reality for thousands of working people by counseling them honestly and effectively, enabling even those with poor credit to purchase a home or modify their predatory loan with far better terms than those provided even in a prime market.
Home Partners- Home Partners of America is committed to making homeownership a reality for more people. The program provides a clear path to homeownership. Our process is easy, transparent, and build on a foundation of choice and flexibility. Home Partners is helping more people get into great homes, in neighborhoods they love, with the opportunity to build a more secure financial future. This is a Rent to Own Program.