Most of us think having bad credit means losing the ability to purchase things due to the lack of “financial integrity”. Actually, having bad credit is not totally BAD. It just means that you probably missed out on a credit card payment or discontinued a loan. It does have its corresponding disadvantages like added interest on your next loan or difficulties applying for a new credit card.
For people with a really bad credit history, buying something like a house is still pretty much possible. But there are some things that must be taken into account.
First of all, you have to make sure that your records are unimpeachable or still completely acceptable. Ironically, this will be important for the credit. Since you don’t have immediate cash in hand, you’d have to apply for a mortgage.
Next, you must consider your current financial capacity. It is very important to determine if your current job or source of income is enough to support all your necessities including your monthly mortgage. Remember that your current situation does not entail a second chance and you cannot afford to add more risks to your credit standing.
A home is a very huge investment and if your current financial capabilities can’t even help your savings, you might as well just stick with your apartment.
In relation to financing, your second alternative would be your savings. If you think you do have a nice paying job and that you have managed to save a significant amount of money, then that mortgage is still a good idea. However, make sure that investing a huge bulk of your cash does not compromise other important things like healthcare and your utility bills.
Before making that decision, it would be wise to consult a professional. Seeking financial advice and doing all the needed research can help you determine if you are truly capable of buying a house. If you do succeed in filing for mortgage, you may also hire a buyer’s agent to help you negotiate the deals and get the lowest possible bargain for the property that you wish to purchase.
Remember that having bad credit may have been caused by a high risk business going really bad or a serious medical condition, but it doesn’t necessarily mean that banks would judge your financial capabilities solely on your credit history. However, when given the chance to redeem yourself, make sure to be very cautious and examine your funds before making a major investment.