Information For People With Bad Credit

When people are considering bankruptcy, there are usually fears surrounding the thought of never obtaining a home mortgage loan again. However, after you have been discharged from bankruptcy, a home mortgage loan will be immediately available to you. Mortgage loan companies for people with very bad credit go by names such as bad credit home loans, sub-prime market or b.c.d. credit. People who have this problem should be considered lucky that programs such as these exist, but they should also understand that the type of mortgage loans and plans that will be available to them will be very limited compared to a person with excellent credit. People with poor credit are still allowed to have some loans, however more restrictions will be placed on them and they will have higher interest rates. There is a point system in loans where one point means you pay a fee for one percent of the loan. People with good credit usually have zero points, whereas people with bad credit have to pay up to five points. Some loan brokers will try and charge up more than this, sometimes as high as ten points. While this can be reasonable under some circumstances, this is usually a good sign that you are being taken advantage of. If you have bad credit and are facing bankruptcy, there are still options available to you. However most of them will be quite restricted and heavily taxed, you should be relieved to know that there are still programs out there that are available to you.