tagged: bad credit rating, bad credit refinance help, bad debt, credit rating, credit rating history, featured

Bad Credit Help From a Financial Adviser

Posted by GuestPoster in Personal Finances

A car or a piece of property can be used to secure a loan but when you have a bad credit rating, the story is quite different. This does not mean that to refinance with a bad credit rating is impossible; it just means that you have to work harder and do some things that you may not otherwise have to do.

Most lending agencies will not lend to a prospective customer whose credit score is below 600. Therefore, the first thing a person seeking to refinance with bad debt should do is to check their credit rating history and if it needs improving, seek to improve it. This should obviously be done before going into a lending agency.

Simple things like making sure that you pay bills early while paying off some of your debt can boost your credit rating. These two simple actions may encourage a lending agency to give you that loan at a better interest rate. So instead of being asked to pay an interest rate of 15 percent, you may find that a lending agency may ask you to pay 12 percent interest. Every little bit counts.

Fortunately, most lending agencies will have a department to advise you on what your best options are given the fact that you have a poor credit score. When liaising with this department you may wish to know things such as whether you can move from an interest only situation to a fixed rate, whether you need to extend a given loan term or if it makes sense to seek a reduction in your rate in order to lower your payment amount. All of these are issues that may come up for discussion depending on your particular case.

In addition to in-house departments that seek to give advice, there are many private financial advisers who are happy to assist you in your endeavor to refinance with bad debt. Of course it will come at a price but getting advice from a qualified financial executive may actually save you money in the long run.

I have a friend who sought the services of a financial adviser and I remember distinctly that he was advised to get a co-signer to stand by him in trying to get the loan. Luckily, he found a family member who was willing to act as co-signer and my friend was able to get the bad credit refinance help he needed.

Before going to the financial advisory firm he had contemplated going to a loan broker. I then learned later that my friend could have ended up spending unnecessary money since loan brokerage fees and rates are usually very high for those with bad debt. Thankfully, my friend made the right choice in going to a financial adviser.