Are you trying to get a new loan or attempting to refinance an existing one and are finding it very difficult due to your poor credit score? You can take heart in the fact that there are lenders out there that can accommodate you. You just have to know where to find them. The internet is a great place to start as you can search a large number of lenders very quickly and narrow them down to the ones that offer the best rates. In this article I will share a few tips to help you get approved for the best loans.

Using a Co-Signer

The better your credit score, the better your rates. So if you don’t have great credit, look for someone who does. By having them co-sign for your loan, you can find yourself qualifying for much better rates. Lenders look at your co-signers record, but you pay for the loan.

In the case of married couples, the partner with the highest credit score can apply for the loan. Which partner this is can be found easily online.

Update Your Credit Report

It is a good idea to check your credit report regularly to ensure that all the information is current. Also consider writing a letter giving an explanation for your poor credit score. Lenders will account for mitigating circumstances such as illness or loss of job.

Rid Yourself of Old Debt and Hang on to Cash Assets

Lenders take other factors into account when look at a loan application. These factors include the amount of existing debt you may be carrying and the amount of cash assets you have. Low debt looks better, especially if you are a high earner.

Lenders look for what cash assets you may have when considering you for a loan. This may be in the form of savings or money market. You should aim to have a least six months of cash reserves.

Do Not Lie on Your Application

More than likely, you will be approved for refinancing. What rates you qualify for depends on your information. So to get the most accurate loan estimate, be honest about your credit background. That way, when you actually apply for the loan, you will be approved for the rate quoted.

Lenders don’t all charge the same rate. With the right care and attention you can find a company that will give you a good rate, even with a bad credit history.