Credit Red Flags That Hurt Your Chances Of Getting Ijara loans

Most experts agree you need to have a good down payment and great credit score before lenders will look at you for ijara loans. Having a damaged credit score isn’t necessarily the end of your chances of getting islamic home financing since you can repair any damage you’ve done with time and effort. However, it’s a good idea to avoid these credit red flags if you can.

• A pattern of delinquent payments. This is something you need to avoid if you plan on getting Ijara loans. Knowing the rules here is important. For example, one late mortgage payment in a 12 month period is acceptable from some institutions provided it can be explained and fully documented.
• Credit Shopping. If you’ve been shopping around recently for credit, there might be a number of inquiries on your credit report that affect your chances of getting a loan. This can alert lenders to someone who is looking to take out a number of loans at once.

A score below 680 means you might still be able to get the ijara loans you’re looking for, but most lenders feel more comfortable with numbers in the 720 range or higher.