The economy is struggling right now and many Americans are feeling the negative effects. You can see the impact of the economic downturn on Americans’ credit scores.
Just 21% of Americans have a good credit score. The data becomes even worse when you break it down by age. In the 30 to 39 age group, the average credit score is 673.
Those with poor credit scores are often concerned with how they will pay for major home improvement projects. Read on if you are seeking new roof financing bad credit should not hold you back. Those that are searching for how to pay for roof with no money have found their guide.
Before you start filling out loan applications, it is important to check your homeowner’s insurance policy. Based on the terms of your policy, you may secure funding for replacement through home insurance.
This is often the case if your roof’s damage is caused by extreme winds or a tree falling on it. If everything goes perfectly, you will only need to pay for the deductible to get the roof repaired.
One option is to apply for a personal loan. There are two types of loans to pursue based on your credit.
If you have poor credit, lenders are likely to direct you towards a secured loan. This means that you will have to put up collateral for loan approval. Those with a higher credit score may qualify for an unsecured loan.
Fixed monthly payments are one benefit of securing a personal loan. It should be noted, however, that lower credit scores typically result in high-interest rates.
Another option is to apply for a credit card. There are many credit cards out there for people with poor credit scores. In fact, making timely payments on a credit card is a great way to improve your credit score.
There are a few pros and cons to going with the credit card route. The positive is that it easy to apply for a credit card. The lender is unlikely to ask you to substantiate your personal income. An online application is processed quickly and you will get an answer back in minutes.
There are a few things to be wary of when applying for a credit card. First, people with high credit scores are likely to receive a higher interest rate. This means you will be paying more in monthly interest.
Also, you may not receive a credit limit that is sufficient for your roof project. Poor credit scores typically result in lower credit limits. Personal loans often provide more capital than credit cards.
A Recap of New Roof Financing Bad Credit
Having a poor credit score does not mean that you cannot secure a credit card or loan. While you are likely to pay more in interest, there are plenty of options for roof financing for bad credit. You may even be able to replace a roof using your home insurance policy.
If you are seeking new roof financing bad credit should not stop you; contact us today to speak with a specialist.