Many loan programs have rate adjustments for lower credit ratings. There are some loan programs, such as FHA loans, which are not credit score sensitive but rather look at your overall credit picture.

After you have paid off a credit card you do not want to stop using it entirely. One of the many factors involved in maintaining a high credit score is the ability to wisely us the credit you have been granted. In other words, if you spend $100 on a credit card each month and pay off the entire balance once you receive the bill you will demonstrate your ability to live within your means, and as a result will see your credit scores improve. This does not mean that you need to spend more than you normally would just to improve your credit rating. You can use charge daily expenses to such as gas, groceries, etc to your card and see the same benefit. Just be sure to pay off the balance each month to avoid getting back into debt.

Even though you may have a bad credit rating, you may not need to get a bad credit loan for your home.

If you have a bad credit rating, it is important to obtain a copy of your credit report and review it carefully. Are all of the debts listed yours? Are some timely payments not being reported? Are your credit limit’s listed correctly?

If you are having trouble with your bills you may also want to look at your life style and where you can cut back in your budget. While most people look at cable or satellite tv as a necessity it can be an expensive luxury that can be cut out. If you have multiple phones, (home and mobile) consider dropping one of the two services. If you have a large car payment, consider selling or trading in your car for a more economical vehicle, or try using public transportation. Your credit rating is one of the most important financial tools you have, protect it first.

In addition to the value of your property, you may be limited by your fico score and how many late payments you have made in a 12 month period as to what loan to value (ltv) you can cash out to. A poor credit rating may mean a lower ltv that you can cash out.