Bad Credit Personal Loans Can Be Path To Home Ownership

Online, September 6, 2011 (Newswire.com) - With the downturn of the economy the past few years, more and more people have decided to rent, rather than own their homes. In fact, the share of people in the U.S. who owned their homes dropped for a second time in the past year.

Experts say this is driven not by the amount of foreclosures, but instead by the fact that people appear to be rejecting the idea of a home as an investment. About 66.5 percent of U.S. households were owned at the end of 2010, down from 67.2 percent in 2009.

People are renting more because they feel home prices will fall more, and for some tighter credit standards for mortgage loans have been a factor. Those with good credit have long been favored by lenders, since they pose a much lesser risk. But lenders are now opting to provide bad credit loans to those with less than perfect credit. This is very good news if you are someone who wishes to own his own home, but has poor credit.

If you've applied for a loan, but were rejected, it's a good idea to obtain a copy of your credit report and review it. You need to not only be able to check your report for accuracy, but also to make sure any negative items are removed. You should also look at it with improvement in mind - what can you do to improve your credit history and raise your credit score?

If you find an error on your credit report, you can immediately dispute them by filling out a dispute form and challenging it. The dispute form can be sent to the credit bureau, and you should get a response within 30 days.

If you've been struggling with bad credit, you know how it feels to be denied a loan. It's an uncomfortable place to be. This makes a bad credit personal loan, and the higher interest rate that comes with it, much more attractive. You'll be so excited to be approved, and perhaps on your way to home ownership, that you will overlook the higher rate.

But if you plan well, and make your payments on time, according to terms, you'll find that a bad credit loan can be just the ticket to make your home ownership dreams come true. Homeless renters, despite their bad credit, can finally buy that welcome mat they've been eyeing at the store.