A bad credit mortgage may be in your future, and you may or may not be able to prevent it. Most people miss a credit card or loan payment now and then, but did you know it could effect your mortgage rate? Poor credit performance, whether or not unavoidable, may qualify you for a bad credit mortgage. This type of mortgage has a much higher interest rate than a regular home loan, resulting in higher monthly payments.

Before applying for a bad credit mortgage, you need to assess how much damage you've done to your credit to see if this type of loan is your only option. Start by obtaining a copy of your credit report, which records every missed car payment or late credit card payment you’ve made in the last few years. You can get a copy of your report online or by calling a credit bureaus. Once you have your credit report, you need to assess your FICO score. The score covers a range of 375-900 points. Anything under 620 will put you in the market for a bad credit mortgage. You can try to repair your credit so that you don't have to apply for a bad credit mortgage by making payments on time and reducing your amount of debt. If you do end up taking this type of home loan, never make a late payment and keep up on your other debts. When your credit score improves, refinance with a regular, low interest mortgage.