Strategies to Refinance With Bad Credit

Here are some more tips to help you get out of a bind and refinance with bad credit. Unfortunately many of these are long term strategies, but that is because some problems just don't have a quick fix. In most instances the best you can do to refinance with bad credit is to become more stable and responsible financially, over a period of time so you can show banks and lenders that you are trustworty. In any case, without further ado, here are more tips to help you refinance with bad credit.

Refinance With Bad Credit By Becoming More Stable

It helps on any kind of applications you might fill out if you have lived in one place for six months or longer. For those of you who just moved to an area, showing your previous address where you lived for a long period of time will help your case too.

Approaching the financial institution with a large down payment is very helpful. The more cash you have up front, the more likely it is that you will be approved for a loan or mortgage or be able to refinance with bad credit.
It is best if you can show that you have saved the money on your own, rather than borrowing it off of a friend or relative. If you did save it up yourself, make sure to make a point of mentioning it to the lender to increase your chances.

These days a landline telephone is becoming a rarity. If you do have a phone number in your name and at your address in your home and in your name, lenders will assume you are more stable and less likely to pull up stakes. Also, it shows the ability to make monthly payments on time to a phone company to maintain your home line. Only having a cellular phone for your home phone is more popular all the time, and it still is not seen as very respectable.

Financial institutions will trust those that they perceive as dependable, reliable and safe. How can you project this feeling? You can make sure you dress as nice as possible, have all of your personal information ready to roll and show up for your appointment on time. Even making an appointment and keeping it might be better than just dropping by on a whim to see if the loans officer is in.

Do you have someone respectable to write you a letter of reference, such as a former employer or someone who once lent you money that now has been paid back? If so, such a letter could be very helpful in establishing your good and honest character to the individual taking your application to refinance with bad credit.

Refinance With Bad Credit Using Collateral

Do you have any valuable items you can use as collateral for a loan or mortgage? Most likely your DVD collection or all of your football equipment doesn't count. How about a vehicle such as a car, truck, motorcycle or quad? Real estate is very useful as collateral. And of course there are investments that can be put on the line such as gold, stocks and bonds. Even furniture and collections of rare aniques might be a possible collateral item if it has been appraised.

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