What is a bad credit? … Also known as adverse credit, bad credit occurs when you’ve had a history of not keeping up with payments on your credit agreements. Getting a mortgage with a bad or low credit score can be harder because it signals to lenders that you may struggle to pay it back. It’s not good for either party when a lender gives a mortgage to someone who can’t afford it. Having bad credit does not mean you can’t get a mortgage. A lender will look at this because there is a fine line between having “fair” credit and having “bad” credit. They may also look beyond just your credit score to assess your situation. You should be able to get a mortgage even if you have a few minor problems in your past, like when you paid your phone bill late. If you do apply for a mortgage with bad credit, the process can take longer than usual. A lender will want to see more evidence of your finances, so they know whether you are able to make mortgage payments. Even if you have a low credit score, the FHA loan program can assist you in purchasing or refinancing a home. FHA home loans are backed by the Federal Housing Administration. certain lenders will offer personal loans to those with bad scores. If you know you can pay it back quickly, this might be a good choice.