When potential creditors look at your application for a loan, they consider the risks that they must take to provide you with money. Owning your home is a great way to show a lender that you are a responsible person; however, home ownership is not possible for everyone. There are more people that do not own a home than there are homeowners. If the non-homeowner happens to have damaged or bad credit, then there application is further frowned upon - perhaps even denied.
There are loan programs for those with bad credit that do not have the luxury of homeownership. These loans are called bad credit tenant loans and they are immensely popular among those with poor or damaged credit history.
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