What To Do if I Have Bad Credit

When trying to get approved for a mortgage loan, you may be faced with you or your partners below average credit score. There are a few things that you can do if you are faced with this situation.

Loans are more difficult to achieve if one or both of you have lower that average credit score, but here are some options you can take to be qualified and approved for a loan.

Apply for the mortgage and purchase the house without you or your partner on the loan application.

Unfortunately, you may not qualify for a home loan or the house that you wanted. Because you are not adding your partner on the loan application, you may not have a sufficient income to qualify for the house. In this case, you would need to wait until the insufficient credit score was improved.

Take time and help fix you or your partner’s credit score.

In as little as two to three months, a credit score can improve if you take the right steps to course correct your credit. If the credit score is severely low, it could take much longer to improve. If you have questions regarding your credit and the steps you should be taking to improve your score, give us a call and we’ll walk you through your options.

There are options for individuals with low or poor credit.

The first thing to do is to talk to a lending expert on your options if you have bad credit. There are loan programs available that allow you to get a home loan with below average credit. However, you should be prepared to be required to put down a larger down payment and pay much higher interest for a high risk loan.

Higher interest rate.

If you or your purchasing partner has a low credit score, you do have the option of applying together, although you could receive a higher interest rate. The positive outcome would be that you are able to use both of your incomes qualifying you for a higher loan amount. The downside is you’ll be paying a significantly higher interest rate than average due to credit history and you may be required to place more money down on the loan.


To find out more about your options, contact Galaxy Lending Group. We can help you determine what the best route to take is by talking to one of our lending experts if you are trying to get approved for a mortgage loan.