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What is Bad Credit?
Before a lender agrees to forward any funds to a potential borrower, they will want
to look at the credit history of the borrower. All the lender is looking for is
assurance that the money they lend out is safe and will be repaid on time, as agreed
upon. The term "Bad credit" gets tagged on to an individual when that individual
fails to meet his or her payment obligations (i.e. defaults) on the loan from a
lender. This tag stays with the individual's credit history for 7 to 10 years depending
on the type of default.
Who calculates your
Credit Score?
A person's credit score is computed by a company called Fair Isaac Company - FICO
for short. Although other companies also compute credit scores, FICO is the most
trusted, and most used, score. The score ranges from 300 to 850, with the higher
end of the scale indicating you are good credit risk. This score is affected by
your payment history for the various loans and debts that you take on. FICO collects
and computes the data from various lending institutions you deal with to give you
a score. Most banks will shy away from you if your credit score is 650 or lower.
At
canadalend.com
we work with all credit scores.
What does Bad Credit
mean to you?
The lower a person's credit score is, the higher a risk that person is considered
by a lender and therefore the higher the cost of borrowing is likely to be. In the
past the choice of lenders for mortgages was pretty much restricted to the big banks
or financial institutions. In
today's market however, this restriction is no longer there. There are many more
lenders available today who are willing to finance higher risk and high ratio mortgages
that the banks won't touch.
What can
canadalend.com do for you?
At
canadalend.com we have access to a large pool of such mortgage providers or private lenders
who provide a variety of mortgage products catering for clients who with past credit
issues and even bankruptcy.
If you fall into one of these groups
- Have bad or a tarnished credit history
- Don't have an established credit
- have a previous bankruptcy
- Are currently in a consumer proposal or in the midst of credit counseling
A
canadalend.com
mortgage and credit specialist can review your situation with you to see how much
credit you can qualify for based on your history and the amount of equity you have
in your home. If you are interested in finding out what your options are, simply
call
canadalend.com
or click on Apply Now! to get in
touch with a canadalend.com specialist. We will work with you to create a solution
that benefits you and optimizes the use of your equity.
* Terms and conditions required
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