Hello. I don’t know if I am posting this in the correct forum, or if I should be posting at all here. Just tell me to go away if need be ;D

We are looking to refi, to pay bills off and start fresh. I never want another credit card in my life ever! We are currently a little behind on all payments. I have consulted a few brokers but am currently being ignored by them. I need to be told if it can’t be done. Our credit scores aren’t good at all. In the low 500’s.

Any advice for us? I know that I haven’t provided a whole lot of info, but i will if need be. Does anyone know of anyone that can help low credit score high dti borrowers that just want a fresh start like ourselves? ???

Thank you in advance!

Have you tried using a debt consolidation company :-? I had a friend that did this several years ago and it was the best solution to the situation.

How much equity do you have in your home? How much are you looking to borrow and what is the value? If you are trying to borrow a high percentage compared to the value, then you will have a hard time, but if you will be left with 15-20% equity at least after closing, you can most likely do this refinance depending on the particulars of your credit report.

Cebt consolidation is one solution, however as RJ mentioned depeding on the equity in the home you do have some options to take cash out to consolidate. Low 500’s and even low 400’s. You might want to post a lil more about your scenario to get a more specific answer.

Where are you at asi may have some help for you ??

but i need to know what state you are in get back to me at

Consider a debt consolidation as a 2nd to last resort (the last resort being bankruptcy), as any settlements negiotated by these types of companies are recorded and have an adverse effect on your FICOs.


H. Scott Miller

Another and perhaps better way to handle the situation would be for the individual to contact their creditors and discuss options in an effort to get reduced payments and/or rates?

I’ve worked in the banking industry most of my life in the residential and commerical area and found that most folks would rather get behind on their payments or file bankruptcy before attempting to have their loans restructured. I know that lending instituations are open and acceptable to making these changes. This is far better than going through the expense of foreclosure. In my experience, pride seemed to superced good common sense. In doing a loan restructure, it does not adversely affect credit reporting. With good reason, the creditors will monitor your balances and reduce your revolving lines. As you pay down the balances, the new balances will be your maximum credit limit at each interval.

Getting additional funding from refi is an option if your additional debts are small. As a contengency, the bank doing the refi (debt consolidation loan) may want to insure the additional out standing debts are paid in full at time of refi. This is good practice and further helps the individual get a grip on their financial situation.

Their are options out there, but if a person truly wants to repair or maintain their credit, help is out there. The goal is getting out of debt, not adding to your debt thinking it’s going to get you out of debt?