If you cannot qualify for conventional loans or are having difficulty obtaining credit through the normal channel, then a Non-Prime loan may be your next port of call. A Non-Prime loan is a loan that is given to people with a less then perfect credit record. The interest rate on a Non-Prime loan is likely to be higher than an interest rate you would expect on a loan with a high credit score.

Many people will use a Non-Prime loan when they cannot get credit to help repair their credit rating. There could be many reasons why a person would fall behind on their credit payments. An unexpected job loss, an illness or just bad debt management can start a downward spiral of late debt payments. Once a few payments have been missed, the interest can start escalating at a frightening rate.

Once you have a bad credit history you may find it hard to open new accounts, gain credit or be accepted for a mortgage. Schaefer Mortgage Corp. will take into account how severe the bad credit history is. From the credit rating he will calculate the amount of interest, depending on how good or bad a risk the borrower is.

There are plenty of reputable loan companies out there willing to offer a Non-Prime loan. To counterbalance the good companies there are also bad ones who will milk the interest rate to the limit.

Also consider the repayment timescale you wish to pay the loan back in. This type of loan is good for repairing credit records but you may not wish to repay the loan over a long period. You might take out a loan over 5 years and then circumstances may change and you can pay it back sooner. If you think this may be the case, ask what the lenders early repayment rule is. Schaefer Mortgage offers terms up to 50 years to help lower your payments. Also Schaefer offers Interest only options to keep your payment option in line with your payment objective.

Finally, remember to get a copy of your credit rating before you apply for your loan. There may be some items or errors you can clean up before applying for a loan. A small improvement in your credit score could translate to a savings of thousands of dollars in interest on your Non-Prime loan.