All of us dream of having a house of our own. A place that we build with our hard work, a place that we call home. While this common dream is mostly achieved by all, many do fail in achieving it. The biggest reason for this is the availability of money. Now, while the simple solution as you and I both know is to take a loan, there are times when that loan application is rejected and the biggest reason for that is a bad credit apartments score.
Credit score, as I am certain you all are aware, is the most important aspect looked at by any bank to giving someone a loan. It is so important that your application can be rejected based on your credit score. So how do you know how less is too less? Most banks easily give loans to people with 700 credit scores and above.
Now the question comes, isn’t there any way for people with low credit scores to get loans, specifically apartment loans as well?
Well, there is! A series of research, observations, and experiences tell us that there are a few ways that most likely will help you get an apartment loan despite having a bad credit apartment score. They are:
1. Joint/Spousal Loan
This is one of the ways that will most likely help you get an apartment loan. You can take a loan either in the name of your spouse, which will certainly show their credit score and not yours so if they have a good enough score then getting a loan might not be a problem.
Joint loans on the other hand comprise loans where you and your partner take a loan together, with both of your names. This method merges both of the partners’ credit scores thereby assuring the acceptance of your loan application.
2. Other Lending Institutes
While banks are without a doubt our preferred way to get loans, there are methods to get them as well like companies, cooperative banks, rural banks, etc. These places although having a high-interest rate hence they don’t check your credit score so you can easily get through this mode.
3. Loan Against Security
Another way is Loans Against security. Bartering your securities like, FD, gold, PPF, etc for a loan is a full-proof way of getting housing loans. Getting the loan against your security might give the bank some form of consolation, thus making the procedure go smoother.
4. Private Lenders
As we know, private lenders have been around for a very long time. Although this is a way to get an apartment loan even with a bad credit apartment score, it is not the most popular or preferred method as not only do the lenders charge a very high-interest rate but they also might ask to mortgage your gold or property.
So, the above points were a few researched and verified methods to get an apartment loan even with a bad credit apartment score. So to conclude as we have seen the utter importance of our credit scores, it is only fair for me to advise you to look after your credit score and improve it if need be.