How To Repair Bad Credit By Refinancing Your Home Mortgage

One of the best ways to repair your bad credit is by refinancing your home
mortgage. The difficult part is finding a lender for your home mortgage
since your credit history is not good. Forget about the banks and other
financial institutions, they will not probably accept your home mortgage. So
how do we find a lender that does?

Well, the answer to that lies in subprime lenders. Most subprime lenders are
willing to offer loans to people with bad credit history. However do note,
it does vary from one lender to another and you may have to visit a few
before finding one that does.

You can find subprime lenders on the internet, through your friends or the
local business directory. Some lenders have acquaintances with other lenders
and they can do a referral on your behalf.

Since subprime lenders are taking a high risk by refinancing your home
mortgage, you may need to find a few before you find one that offers you the
loan. Subprime lenders also have their own approval process not much
different from banks and financial institutions. Your credit history,
assets, gross income level, current debts etc are all taken into
consideration when determining whether you qualified for the loan except
that they have a higher threshold compared to banks and financial
institutions.

They usually charge higher interest rates due to the higher risk they are
taking, so even though you may pay more, in my opinion, the benefits of
recovering from your bad credit outweighs the disadvantage of higher
interest rates.

Do take note, this is a temporary solution as you still need your pay your
monthly refinance on time. If not, you will be in a worse position. I
recommend getting a refinance home mortgage loan more than what you
currently owe so that you have some money to clear off your credit card
debts, bills etc. That also helps in your credit repair efforts.

Ultimately, this method of credit repair still require you to manage your
finances better. I would recommend to setup the refinance payments to
automatically deduct from your salary every month. In this way, part of your
salary goes towards repaying the refinance loan before you even have a
chance to take out the money. Most banks can set it up for you free or you
can use the internet banking system to do it.

Remember, the only way to repair your bad credit is to have good discipline
with your finances.

About The Author: Ricky Lim works in a finance company specialising in Home
Refinancing Loans. Visit his site at http://www.about-homeloan.com for
countrywide home loans rates and a free home loan calculator