Whether applying for a credit card or applying for a home loan, credit is very important.  The difference between good credit and bad or no credit can mean a lot when it comes to interest rates.  For a myriad of reasons, many people have bad credit, or even no credit at all.  Whether it is those late payments that were made or just falling into a bit of hard times, bad credit can cost you thousands over the life of a loan. 

Sometimes it is hard for people with no credit to be accepted for a home loan.  This is because lenders worry that the borrower will default on the loan.  If a borrower with no credit can find a lender that will offer him or her a home loan, the interest will most probably be very high, making monthly payments high.  If a borrower wants to begin to improve his or her credit, though, and become a homeowner at the same time, this may be the only avenue available.

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