There are many reasons why you might have a bad credit rating. However, having a poor or bad credit should not be a major stumbling block to getting a home loan or any other finance arrangement.
What Reasons determine a Poor or a Bad Credit Rating?
There are many reasons why you might have a bad credit rating. Interestingly, your rating is not always a result of negligence or inability to make repayments. Here is a list of how you can get a bad credit rating:
>> If you never had a loan or never owned a credit card because mainstream lenders cannot access any evidence to show that you can manage your borrowings successfully;
>> If you have a Default listed against you because you failed to keep up with your regular payments on a previous loan or finance arrangement; or
>> If you have a Court Judgement listed against you.
Why a Bad or a Poor Credit Rating does not have to be a Stumbling Block to Getting a Loan?
It is impossible to borrow from any of the mainstream lenders because your credit ratings will prevent you from fulfilling their strict lending guidelines.
However, there is a possibility that you can still get a loan. It is because there are a number of specialized lenders / credit providers who specialize in providing bad credit loans to people with a bad or a poor credit history.
Taking help of an Expert Finance Broker
Seek advice from a professionally qualified and expert finance broker who will put you in a better position. When assessing your specific request for finance or mortgage loan, the finance broker will:
>> Look at your income, nature of your employment and your Loan-to-Value Ratio (LVR);
>> Look at your accumulated savings and the period of your savings history;
>> Look past your credit file and will discuss with you your credit blemish;
>> Require you to be fully transparent. You will need to provide a thorough explanation of your credit misdemeanor;
>> Be upfront with you. By informing you that the interest rates are higher for clients with blemished credit history; and
>> Discuss with you the reasoning or situation that led to the listing of either a Default, Court Judgement, Part 9 Agreement or the Bankruptcy.
Truly, having an expert finance broker on your side will save you lots of time in obtaining bad credit loan. So, don't take tension of your credit problems.