Damaged Credits

Although bad credits are a definite to be avoided at the time of applying for a mortgage it is definitely not an unrecoverable financial disaster. You may still apply for a home loan with imperfect credit. There are scores of lenders in the sub-prime mortgage market willing to offer affordable terms on your imperfect credit mortgage loan provided you show the willingness to repair imperfect credit. The sub prime market saw an explosive growth in the 1990s. Some lenders offer homeowners with impaired credit a credit card that is secured by the equity on the home. The rationale behind such an action is that if they use the credit card responsibly, the homeowners could repair their credit ratings. There are also lenders who aggressively market imperfect credit loans in the form of checks that can be cashed to activate the credit line. However, it is important to keep away from unscrupulous lenders looking to trap unsuspecting borrowers in an excessively costly imperfect credit mortgages with abusive terms and conditions. Predatory lending costs borrowers approximately $9.1 billion dollars each year.