How to refinance your Home Loan despite a bad credit score

Have a bad credit score? You can still refinance your Home Loan with some simple yet effective ideas. Read on to get an insight now! Ajay Kulkarni had a Home Loan of Rs 30 lakhs for 20 years at an interest rate of 10%. Recently, there were some medical emergencies in his family and he could not pay the EMIs on time leading to the default of his loan repayments. He then came to know about another lender who was charging an interest rate of 8.53% on Home Loans. He decided to give the option a shot and opted for a Home Loan Transfer. But, his missed repayments had negatively reflected on his credit score and he did not know if his new lender would sanction his refinancing application. Let’s help you to go about a Home Loan refinancing despite a bad credit. How does you credit score affect refinancing? You should know that financial lenders use your credit score to find out if you can repay them on time. A credit score ranges within 300-900, and a score of 750 is a good score. A credit score within 350 to 750 is average while anything less than 350 is bad. If you have accumulated too much debt and a bad credit score, lenders will consider you as a ‘high-risk’ customer. Lenders may not wish to sanction your housing loan application. Banks, in particular do not give priority to borrowers failing Home Loan eligibility. How to refinance your Home Loan with a bad credit score? ● You will have to resolve your bad credit score in the first place. Try to pay off the costliest debt that you have. Also, try to at least pay the minimum amount due on your outstanding amounts ● If possible, deposit a particular amount in your bank account as the lenders may see that you have funds in the account to repay the Home Loan. ● You can also ask someone with a good credit score to co-sign your loan which may assure the lender that you will surely pay the loan on time and without fail. ● If a lender has rejected your Home Loan application, don’t try at the same lender or any other, why? Because a rejection also reflects on your credit score and reduces it even further. ● Rather than banks, apply for a Home Loan refinance with a non-banking financial company (NBFC) because NBFC are less strict than banks while handling your case. ● If you work for a noted company, you can negotiate with lenders as they do consider candidates with a bad credit score but with a good employer. ● You can also explain your lender about the bad credit score such as medical emergencies. You can make your case strong with original bills and medical certificate obtained from your physician. ● Nothing working? You can also approach credit management agencies; they may help you find the best match for your Home Loan refinance application. You must watch out for some precautions ● If a new lender accepts your Home Loan refinancing, it’s good for you, but may charge a high Home Loan interest rate when compared to new customers. You should also see if other fees and transfer charges are higher or not. If the cost of the balance transfer is high, refinancing may not be the best option to go for! ● Is your new lender increasing the loan duration while decreasing the interest rate? Watch out! For example – The new lender provided Ajay a low interest rate but extended the tenure to 20 years. But, he had already repaid the loan for five years to the pervious lender. It means that Ajay’s Home Loan refinance is set to cost him a lot more in the long run and his monthly payments have reduced, though! ● If you have loan repayment by refinancing mode on mind, you need to consider the other charges that you will incur. You must add it to the total loan cost if there is an increase in the tenure. The Bottom Line Home Loan refinance and that also on a bad credit score may be difficult but it is not out of proportion or is not impossible. The idea is to approach NBFCs than banks. Try to negotiate the terms and conditions by displaying your employer status or get a person with a good credit score to co-sign your loan. Also, try to improve your credit score as much as possible and consider all discussed pointers when deciding to opt for a Home Loan refinance.

Have a bad credit score? You can still refinance your Home Loan with some simple yet effective ideas. Read on to get an insight now! Ajay Kulkarni had a Home Loan of Rs 30 lakhs for 20 years at an interest rate of 10%. Recently, there were some medical emergencies in his family and he could not pay the EMIs on time leading to the default of his loan repayments. He then came to know about another lender who was charging an interest rate of 8.53% on Home Loans. He…

Read More

How to Get the Professional Loan for Doctors?

Professional Loan for Doctors

When it comes to the growth of a business, finance is a critical aspect. It is vital for the progress and success of any business. Without a regular pumping of money and finance, no business can thrive. With changing times, more professionals are inclined towards borrowing money to expand their scale of operation. Amidst all the popular loan options which are available for various professionals, professional loan for doctors are among the most popular loan options available in the market. When borrowing a professional loan for doctor, most lenders tend…

Read More

A Step-By-Step Guide to Buy a Japanese Used Car in Singapore!

Buy a Japanese Used Car in Singapore

Have you been searching for a reliable vehicle which comes with a low budget? Are you facing difficulties to know which car could ideally fill all your needs? So, have you search for a Japanese used vehicle? Although it’s every driver’s dream to buy a brand new vehicle. However, with lots of other financial responsibilities together, it’s not possible to own one that easy. But with the availability of Japanese used vehicles today, prospective car owners in Singapore can make a huge benefit buying one for themselves. Investing in a…

Read More

Portsmouth Children Entertainers offer remarkably memorable experience

Children Entertainers2

Identifying the right entertainment may be daunting for your child’s party. This stress is because you wish to ascertain how much you care for them and wish to turn their party into a memory to last for a lifetime. There are some years and days that cannot be rewound and so making the best in offering the entertainment chosen determines the party overall success. Once the entertainment is perfect, rest falls into place. If you want everyone to talk about the party, it is best to seek a helping hand.…

Read More

Enjoy the Colourful India at Ahmedabad, Gujarat

Enjoy the colourful India at Ahmedabad, Gujarat

The largest city in Gujarat state, Ahmedabad is also the administrative headquarters of entire Gujarat State. It has been an important hub for industries as well as economic for entire India. The eighth busiest airport in India is the SardarVallabhbhai Patel International airport, which serves the cities of Gandhinagar and Ahmedabad. If you are planning to visit India, Ahmedabad is a city which should not be forgotten. One can easily get from Atlanta to Ahmedabad Flights at very affordable airfare. The distance between Atlanta to Ahmedabad is around 13,239 KM.…

Read More

How is Bonsai a Perfect gift?

Bonsai a Perfect gift

There are so many festivals and holidays in India. With the oncoming of every holiday or celebration you need to go through the process of looking for the ideal gift. But how do you look for the perfect gift? There are so many things out there, how do you go for something that is unique yet ensures that the personal touch is there? It is not an easy task going through a ton of different materialistic items trying to find one that makes the person feel valued. If you want…

Read More

Pursue an Engineering Course Based on Your Passion and Interest

Engineering Course

Engineering is one of the most preferred courses amongst the youngster. In fact, researches revealed that most of the students who have completed their 12th grade in science stream, aim to pursue engineering course program. However, most of them opt for the course program, without even knowing their passion and interest. But, academicians are of the opinion that it is essential that one the choose course, based on their passion and interest. If you are one amongst those students, who is willing to pursue engineering without being aware of the…

Read More

What is an inverter technology in washing machines?

inverter technology in washing machines

Nowadays, washing machines integrated with inverter technology, or direct drive, are considered to be more efficient than indirect drive. But merely believing in the fact is not enough. You should know the details about both the drives, direct and indirect. Finally, you will be able to differentiate between two technologies. Here’s a write-up informing the audience about the inverter technology that is prevalent in washing machines. When you are planning to purchase a washing machine, you should read washing machine buying guide properly. This article is an excerpt from the…

Read More