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It is sometimes tough to see the light at the end of the tunnel, but when it comes to repairing bad credit, it is important to never lose sight of it. Many people find that they are in a bad credit situation and think there is nothing that they can do to make it better. It will often scare them out of things such as a bad credit mortgage. Maybe I am just a ‘half full' type, but there are definite advantages to taking on a bad credit mortgage if you are facing this situation. The biggest advantage of taking on a bad credit mortgage is that it will actually help repair your credit in the long term.
Bad credit does not last forever unless you continue making bad credit moves. If you assume a bad credit mortgage and make prompt payments on it, this will reflect on your future credit rating in a bigger way than almost anything else. Another advantage to a bad credit mortgage is home ownership. No matter how you get into home ownership, everyone should get into it. If it takes a bad credit mortgage, than that is what it takes. But the advantages to being a home owner and the equity that you can quickly build cannot be replaced. If you have credit problems, do not let them dictate the rest of your life. Get that home you are looking for with a bad credit mortgage and in a few years you can refinance it into an ‘A Paper' loan with your established payment history and improved credit rating.
|Jennifer Mathes, Ph.D.|