Bad credit does not have to stop you from investing in property. Whether you want to buy a piece of land, an off plan home, a holiday let or a buy to let property, bad credit does not have to be a barrier to success in property investment. You have several options if you want to make a successful investment in property with a bad credit history.

First of all, let's look at why you might have a bad credit history. Some people have credit problems because they are unable to keep up with payments or because their income fluctuates, making it difficult to plan financially. This is a problem for many self employed people, of whom there are a growing number in the UK. As a self employed person, you may have months when the income comes in steadily, followed by a dry spell where clients just won't pay up. That doesn't make for stability in meeting financial commitments and you may have a poor credit profile as a result.

One option for investing in property for people with bad credit is to use cash. If your income is cyclical, then you can invest in property when there's a lot of money in the kitty. This is what people who earn principally from City bonuses have done. The advantages of using cash when you have bad credit is that you won't risk being turned down for a mortgage or loan. The disadvantage is that all your spare cash is tied up in your investment property. Most professional property investors like to maintain some liquidity so they can take advantage of attractive investment opportunities as they arise.

If using cash is not a possibility, then there's another option for homeowners with bad credit. That involves using your home as security for a loan and raising investment cash that way. A secured loan is a good option for people with bad credit. That's because bad credit lenders offer loans on good terms because of the security that your property offers. You can release a significant portion of the equity in your home by taking a loan from a bad credit lender. Some lenders will even advance more than the current value of your home, gambling on the fact that the value of your property will go up, and your equity with it. This can free up a tidy sum which you can use to buy your holiday home or place in the sun.

Let's not forget the bad credit mortgage or remortgage. There are dozens of lenders and deals for people with bad credit. You will have to pay a slightly higher interest rate, but getting a bad credit mortgage means you can get the type of mortgage you need for your property investment. Choose an interest only or repayment mortgage, a fixed or tracker rate mortgage, a standard or flexible mortgage. There are few limits when it comes to bad credit mortgage deals.

If you are planning to get a mortgage or remortgage with bad credit, then it's worth going to a specialist broker. That's because you'll be able to check out all the bad credit mortgage and remortgage deals without actually making an application. Too many applications could really damage your credit profile, especially if you get turned down. Getting help from a broker or financial adviser is the smart way to invest in property when you have bad credit.

So don't worry that your bad credit history will put the property investment game out of reach. It won't. All you need is the right advice and you can cash in on the property investment boom, even if you have a bad credit profile.