Bad credit happens when a person gets careless with his expenses and debts, and that he has many unpaid bills.
Persons with unsatisfactory credit rating end up having difficulty getting approved for insurance  or even for loan applications. In short, winding up with poor credit is a very unhealthy financial situation to be in.
If you want to be approved for any kind of loan in the future, you should at least attempt to rescue your credit score by talking to these companies you have debts to. In this way, you can find an alternative way by which you can reasonably pay for the amount you owe. Cleaning up a poor credit rating is a tough job, but you can do it if you are well-informed.
Do you have your heart set on that dream house you’ve always wanted to buy? Are you really interested in purchasing a home, but are afraid you can’t get approved for a home loan because of your bad credit?
As stated before, loans can be a little tough to get approved on because of a person’s current financial status or even his credit score. A home mortgage loan can take out a big chunk off a family’s monthly payments, but if buying a house is very essential, you can get that home loan you need even on bad credit.
First of all, you need to know what a home loan or a home mortgage loan is. If you want to purchase a house, you will be using that purchase as your collateral so you can be loaned the money.
Collateral also means leverage or security for your lender, so in case you are unable to pay your part of the bargain, the house can be taken by that lender.
Now, if you have an unsatisfactory credit score, you can still get that mortgage loan, but there are some differences.
One big difference is that mortgage rates for people with poor credit are much higher than for those with good credit ratings. Expect that your mortgage lender will not be very generous to you in this regard; as you already have a record on non-payments from other companies you have debts to.
Mortgage rates are highly determined by one’s credit scores, but other factors are also used by lenders to compute for it, such as monthly income of the individual or his family, other existing properties or loans, and others.
Also, if you are getting a home mortgage loan on the kind of credit that you have right now, you may not be given a very long term for your mortgage. If some persons are given as much as 30 years, you may only have a shorter period of time as your maximum to pay off your mortgage.
Again, as said before, what you can do right now is to try to make changes on your credit rating. Also, do a little research on lenders that can provide the kind of loan you need, given your credit scores and debt.