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Bad Credit Loans Will Help Me Budget Better For My Kids

After my divorce, my credit was shot and I was afraid I would have a hard time qualifying for even bad credit loans. As a single mother of four, maintaining a family budget can be difficult. Unfortunately, every time one of the kids gets sick or needs new school supplies, I might as well throw my budget out the window. When I would need anything for the kids I would end up going to the pawn shop to sell whatever I could to stay afloat.

I knew the only way I was going to be able to get ahead was to improve my credit score. But the high interest ramifications of bad credit loans meant that monthly payments would be higher than what I was able to budget. The relation of poor credit history/scores on my report greatly limited the types of loans I could get. Consumers affected with poor credit have some great options and programs they can take advantage of, but after doing some research, I realized I was wrong and decided to do two important things to build better credit for my future.

I start by looking into credit repair first. But credit repair can take some time and I needed to do whatever I could to lower my expenses. I was paying over $1200.00 a month on rent and I really wanted to find way to get a better home, even if I had to apply for bad credit loans. I knew I would have a hard time qualifying for the historically low interest rates on mortgage loans, but I still applied for several bad credit loans and ended up getting one with an interest rate of 8.85%.

If my credit was good I could have got an interest rate around 5%, but I was willing to pay more now, figuring I would refinance later. I bought a home for $90,000.00, and with my interest rate, my monthly payments are almost $800.00. If I had not needed to shop for bad credit loans I could have gotten an interest rate around 5%, which would have given me a payment under $600.00 a month.

I ended up buying a home before my credit repair effort had taken effect, so I might have been able to get a lower interest if I had waited. But I am pleased that I could even get a loan, even if it was one of those bad credit loans. Now that I am a homeowner, I plan on using my first-time buyer’s tax credit to make sure I have a financial cushion and I plan on refinancing in a few years to lower my monthly house payments.

Bad credit loans are available to most people like me, and there are even some great programs available to people just trying to make ends meet; you just have to look for them.