Loans can come handy in many stages of human life when he/she need money in emergencies. The financial emergencies are common for people who have no or less savings in life, or they had a poor fortune.
However, if someone has a bad credit, getting a loan is way harder, and the chances are low that he/she can get a hand on the money with the help of a loan. But, don’t worry about it and take a breath of relief. The below given are top 5 tricks that can help in getting a home loan without any issue.
On the other hand, some of the tricks will help you remove bad credit score and getting a normal score to get a loan at the normal interest rate. Let’s check out all the popular methods in details and learn about them individually.
- Preferring Lower FOIR
With the help of lower FOIR, it becomes easy to get a loan with bad credit. Wondering that what is FOIR? Well, it stands for Fixed Obligations to Income Ratio. It is mainly to calculate the obligation per month where it will help you know the EMI payment and the home loan amount. By this, the bank can help by fixing a ratio and providing a loan.
- Getting the help from a Guarantor
If there is someone who has good credit and helps you by giving the guaranty, then it becomes easy to get a loan. By this method, you can remove defaults and get the loan due to another person. It is a highly effective and reliable option which will come handy to fulfill your need with ease. However, finding a guarantor can be typical.
- Provide Interim Security
One of the effective and most reliable options which can come handy and fulfill your need with ease is offering the interim security. It will work perfectly, and it is highly reliable that’s why you can rely on it. Because you will be providing the primary security so you may have to pay less interest rate in exchange and it is definitely reliable.
- Clean Track Repayment
You may be thinking that what is clean track repayment due to its complex name, right? Well, it is all about getting a loan on existing loan, and it can easily provide you a better deal at home loan. It will help because you have to offer lesser LTV and it will work perfectly and fulfill your need with an ease that’s why you can try it out now.
- Negotiation with Tenure
The borrowers who have impeccable credit scores are always getting the best deals. The major reason behind this thing is less interest rate, and it is the major reason which can make you prefer negotiation with tenure and get a cheaper interest rate
But, people with poor credit score can compromise and negotiate with the bank at the higher interest rate. You have to give it a try and focus on dealing at an interest rate which is easy to pay. Many people search online clear my credit rating to get rid of it but following above given tricks are better and reliable.