Bruised Credits
Before accepting your mortgage application, lenders will analyze your credit card statements to evaluate your repayment records to see how responsible you are with credit. On-time payments in the last three years are excellent for all lenders. Bruised credit includes late payments on judgments, bankruptcy, consumer proposal or credit counseling, late payments on your mortgage, foreclosure, and even identity theft, loans, collections, etc. Traditional mortgage lenders and insurers will not reject applications with credit histories that show challenges with borrowing in the recent past.
So what is a credit repair mortgage?
While bruised credit holders require to have an ideal bank statement, a credit repair mortgage helps people with poor credit histories. Although interest rates and charges for such mortgages is high because of the noted risk. However, if you can make your repayments on time, your credit rating will start to progress – and you may be able to switch to a more competing deal within a few years.
