– Loan Advice –

Poor Credit Home Loans

If a borrower makes all of his mortgage payments on time and never misses a minimum monthly payment on their credit card, then that borrower will not have to concern themselves with poor credit home loans.

However, if that borrower doesn’t make their monthly payment until 30 days after their payment is due (otherwise known as a 30 day late payment) such a late payment will have a severe, adverse affect on their credit score and if the 30 day late payment has occurred during the past year, that person will more than likely be forced into poor credit home loans. If they acquired a 60 day late payment, that would affect their credit score even more severely, and that most certainly would force them into poor credit home loans.

Furthermore, when it comes to credit card payments, if a borrower has one 30 day late on their credit report, the penalty is not as severe as a mortgage late, but if it has occurred within the past year, it will definitely affect their credit score more severely than if it occurred sometime in the past. Fortunately, however, the credit card late payment will not necessarily be enough of a ding on their credit to force the borrower into poor credit home loans. If however, they have several credit cards with late payments during the past year that will more than likely subject them to poor credit home loans.

Collections and tax lien judgments will always affect a person’s credit score and if they are severe enough (for thousands of dollars) or very recent, that borrower will also be required to settle for poor credit home loans.

These scenarios are only a sampling of why borrowers must sometimes settle for poor credit home loans, but at least they illustrate some of the most common reasons.