Minor credit problems or financial difficulties stemming from circumstances, such as illness or temporary loss of income, may not hinder your chance for getting lower rates on loans. Many times these circumstances only limit your loan choices to high-cost lenders.
If you have negative information on your credit report, be sure to explain to the lender your circumstances and/or reasons for the negative information. If there are compelling reasons behind the information, you may still be able to qualify for lower rates.
If your credit problems cannot be explained, then the reality is you will probably have to pay more than those with strong credit histories.
The key is not to assume anything. Ask questions such as; how does your credit history affect the price of your loan? What can you do to get a better price?
An important piece to applying for a loan is reviewing your credit report for accuracy and completeness before applying for a loan.
Below are a few sources to obtain your credit report:
Equifax: (800) 685-1111
TransUnion: (800) 916-8800
Experian: (888) 397-3742