Refinance a mortgage with bad credit

1
Premier Credit Plus
2
Refinance a Mortgage with Bad Credit
3

• The COVID-19 pandemic has wreaked havoc on
  citizens financial stability, with many missing
  mortgage installments and even facing
  foreclosure. If you are in this unfortunate boat,
  you may have heard about  mortgage
  refinancing options available from most financial
  institutions and federal and state organizations.
• For those with good credit scores, this is a very
  viable relief option on the other hand, if you
  have a bad credit score, refinancing your home
  may be a bit more complicated. The good news is
  that it is certainly not impossible, and you can
  even boost your credit score in the process.

4
Do you have a bad credit score?

• Your credit score is primarily affected by how
  good you are at paying your bills. If you pay the
  full amount of your bills and repayments
  regularly, then your credit score should be high,
  or sound. If you default on these payments
  regularly, your score will be low, or bad.
• According to Investopedia, credit scores are
  composed of five distinct factors, and improving
  any of these will boost your credit score

5

• Payment history (35)
• Credit usage (30)
• Age of credit accounts (15)
• Credit mix (10)
• New credit inquiries (10)
• Most creditors use the FICO scoring system to
  calculate credit scores. A terrible credit score
  will dwell between 300 500 (with 300 being the
  lowest), while a good credit score will fall
  within the 750-850 range (with 850 being the
  highest). Anything in-between will vary from fair
  to good in terms of credit scores (Source).

6
Why is a low credit score terrible for
refinancing your mortgage?

• Financial institutions use your credit score as
  well as your credit history to calculate the risk
  involved with lending you money. Unfortunately, a
  bad or low credit score, as a result of years of
  late payments and loan defaults,will not bode
  well for you.Therefore, a bad credit score will
  affect the creditors choice to refinance your
  loan in the first place, as you may be too high a
  risk.

7

• If you manage to find a creditor that will
  refinance you with a bad credit score, you may
  face terrible interest rates, which will cost you
  more money in the end. The image below shows the
  estimated interest rate for a range of credit
  scores based on the national average of a
  300,000 loan amount over 30 years.
• Image Source My FICO
• Refinancing your loan may not be the most
  lucrative option for you, depending on your
  situation. You should look at your other options
  and make a calculated choice based on what will
  save you more money.

8
How can you improve or increase your credit
score?

• Luckily, boosting your credit score is not very
  difficult, and a few simple steps can head you in
  the right direction. As a bonus, the results can
  show within a couple of months, with a
  significant difference visible in a year. How
  drastically you will increase your credit score
  will, however, depend on how bad your score is.
• To get started on fixing your credit score, have
  a look at the tips below.

9

• 1. Review your credit scores
• This strategy will help you understand what
  financial behaviors are hurting or improving your
  credit score. You can pull a copy of your annual
  credit report,free, once a year through
  the Annual Credit Report website. Watch out for
  things that you should avoid, but also for
  potential errors that may be lowering your
  credit.Please make a note of the behaviors that
  are boosting your credit score, and make sure to
  copy them.

10

• 2. Pay those bills
• From the FICO credit score breakdown shown above,
  you can see that payment usage and credit history
  affect more than 60 of your credit score. If you
  can improve these, you can significantly increase
  your credit score.
• For example, paying off any loan, such as a
  student or car loan, will help to fix your credit
  score, even if you do not have large amounts left
  to repay on these loans. If you are missing
  payments due to forgetfulness, try to set
  electronic reminders or automatic bill payments
  from your bank account.

11

• 3. Aim for less than 30 credit utilization
• This issue refers to the portion of your
  allowable credit on the credit card that you are
  using at any one time. So if you can have an
  overdraft of 10 000 on your credit card, you
  should not be using more than 3,000 per month.
• The best way to keep this number low is to make
  sure to repay your credit card in full every
  month. Requesting a credit limit increase can
  also help with this, since it could improve your
  credit score, as long as your balance does not
  increase as well.

12

• 4. Limit hard credit inquiries
• Every time you request a new loan, whether it be
  a home loan, auto loan, or cash, from an
  institution you are not currently doing business
  with, a hard inquiry into your credit score is
  launched. If you have several hard inquiries per
  year, institutions can take this as you
  struggling to cope financially, and it will
  negatively affect your credit score.
• Try to avoid these, by not applying for loans, or
  applying for loans from your current creditors,
  while you are trying to increase your credit
  score.

13

• 5. Get your taxes in order
• If you are paying your taxes with a credit card
  or are behind on paying your taxes, it can
  negatively affect your credit score. The best way
  to remedy this is to get in touch with a
  professional tax consultant at Taxes R Us. Our
  professional consultants can help you get your
  taxes up to date to help fix your credit score.
• If you are facing foreclosure with a bad credit
  score, know that there are plenty of options
  available for you. Some of these may be more
  lucrative than others, and some may even help you
  increase your credit score.Contact
  us 844-829-2292

14
Contact Us

• Address -  147-08 235 Street Rosedale NY 11422
• Phone -  844-829-2292
•  Fax - 844-829-0960
•  Email - info_at_premiercreditplus.com
• Website - https//premiercreditplus.com/