If you score falls into this sub-prime band you will need to approach a lender that specializes in such loans. The average mortgage lender will be most unlikely to offer you the loan so instead head straight for a specialist company.assign reason low 500

Fixing or repairing your credit is another essential must do. No mater how tight your financial situation is there is always something you can do to improve your score. The key to this is to be proactive and take action (something most people fail to do). The sooner you take some action, the sooner your score will improve.

Obtaining home finance if you have a credit score under 500 can be difficult however this article will try to explain what you can do to improve your chances of getting what you want.assign reason low 500

If you are borrowing to buy a home and already have equity in your existing home, or can put down a reasonable down payment then you will have a much better chance. What the lender may do in this situation is to is look at the loan to value of the property that you are purchasing. Assuming this ratio is not too big they will be more likely to lend you the mortgage as they will have a great chance of recovering their money should you default at some point in the future.

A credit score of 500 seems to be a common cut of point for lenders meaning that if your score is under this threshold you may struggle to to get the loan you need.

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