Bankers have been portrayed in popular culture by a wide variety of personality types. In "It's a Wonderful Life," George Bailey was the people's banker, always willing to help his neighbor, while Mr. Potter was the mean, Scrooge-like character always taking advantage of the little guy. With such contrasting images, it's no wonder that people tend to avoid bankers whenever possible.

The good news is that most bankers tend to be more like George Bailey than old man Potter. And if you're looking for a bad credit mortgage, your banker is the place to begin your search. Talk to him and explain your situation. Then, if he won't approve you, ask why you failed to meet his bank's guidelines.

Know the Score

Before you approach any bank, though, it's important to know your credit score.

In addition to acquiring your FICO number, it's important to review a copy of your credit report. The Fair Credit Reporting Act requires each of the nationwide consumer reporting companies (Equifax, Experian, and TransUnion) to provide you with a free copy of your credit report at your request, once per year. Check the report for inaccuracies, and have them immediately corrected.

Make a Plan

Once you're armed with your credit information, you can begin your search for a lender. In addition to speaking to your regular banker, shop around and compare terms and conditions. Remember that lower credit scores generally equal higher loan rates. Collect figures from several lenders to establish a baseline interest rate. Credit inquiries performed within a 30-day period count as one inquiry and won't lower your credit score, so try to do your comparative shopping within the same month.

Finally, select a repayment term so that you can afford the monthly payments and comfortably play each one on time. This is good debt management, and a surefire way to raise that FICO score for future endeavors.

With a little knowledge and a few simple steps, borrowers with less than perfect credit histories can find lenders willing to help. Once you get that bad credit mortgage loan, you'll agree that it is, indeed, a wonderful life.