22. Credit risk
Banks and other investors loan money to make money. If there is some risk
of not being paid back, the lender will want a higher interest rate to offset the
cost of those loans that go sour. The higher the risk, the higher the interest rate.
If you are considered too high a risk, lenders may not loan you money no matter how
high a rate they can charge.
If your credit rating is not stellar, talk it over frankly with the
broker or lender you hope to deal with. They may still have some loan package that
is suitable. If not, try another lender or embark on a credit improvement campaign.