Owning your home is a dream and aspiration may people wish to try and achieve, although given the significant amounts of money involved, this can be a rather awkward task for many homeowners hindered by poor credit ratings. So common misconception is that if a person has a bad credit rating, then they will not be able to get a home loan, this is not quite true, because there are a number of loans specifically designed for people with poor credit scores. Just like with EBay, whereby users have feedback in their account to provide users with a reference as to their reliability, the credit score helps provide lenders a snapshot of your history, and spending habits.
However, banks and lenders are not permitting such loans for altruistic reasons, and these loans are not exactly the most cost effective or attractive options available. Stiff penalties fro non payment of interest repayments, increased and over-inflated interest rates and sub charges are all potential pitfalls for these types of loan. However, if you do suffer from a poor credit score and are looking to get a home loan, so long as you exercise responsibility and caution, ensuring you keep up to date with your payments, you will not have anything to worry about.
There is a direct correlation between your credit score and the interest rate you pay and are entitled to, at the risk of oversimplifying, the better the credit score, the more generous the interest rates (so higher interest rates for your savings, lower interest rates for loans mortgages payments).