Hello, if you are interested in this article then you are looking for bad credit loans and ways of obtaining finance with a tarnished credit report. The good news is, that there are definitely options available and let's face it, having bad credit is pretty common these days. You are not the only person to miss a payment or forget to pay a bill. It's a pity you aren't reading this under better circumstances, however this could be one of the most important articles you'll ever read.
I've been involved in the credit assessment department of major banks in Australia for numerous years and have seen a ton of applications for bad credit debt consolidations loans, purchases and regular refinances. Bad credit is extremely common these days, in fact it's fairly easy to get slapped with a default from a telco company by perhaps being oversees, moving house or simply forgetting. This does not make you a bad person even though the bank may look down upon you and your application will certainly be looked at more closely.
From working for years in the credit assessing departments in major banks, I have seen many applications for bad credit loans that contain a small telco default and so many times the applicant is totally unaware of this. Yes, a red flag will be raised on your application if you have a default, however most lenders will also consider the severity of the default, the amount, the circumstances, and the time taken for it to be repaid. One thing is for sure, you will need a written explanation surrounding the default so be prepared for this.
For someone who has got themselves into a poor credit position, the chances of their approval will decrease but again there are lenders who are willing t take on this risk. The credit report may contain court judgements, large unpaid defaults or evidence of bankruptcy but this is no reason to give up. Bad credit loans make up a huge portion of the home loan market in Australia and many lenders actually prefer these type of loans.
When it comes to bad credit finance, the lender will firstly look at two things when considering your application. First they will look at the amount of the debt registered against you on your credit report and secondly the amount of finance you are looking to borrow against the security offered or being purchased. This ratio is also called the 'Loan to Value Ratio' or LVR.
However, the final decision is not just all about the bad credit. There are other factors that will come into play and these include the other variable factors of the application. The applicant's income may be great and can easily service the level of debt, net wealth may be very high, employment may be stable. These are all good qualities on the application that the lender looks for.
The major lenders will be more difficult to get finance with, while non-conforming lenders will most likely consider it. Yes, the interest rate may be a little higher to take on this risk.
A non-conforming lender targets the poor credit market. They tend to be a little more flexible with their decision-making and in turn may charge a slightly higher interest rate or upfront fees, however these days non-conforming lenders are very competitive with the major lenders.
Make no mistake, a non-conforming lender is still very competitive with the major lenders in terms of interest rates and products offered. They may charge a slightly higher interest rate or upfront fees but if this means the difference between having a loan approved or declined then it may well be worth it for you.
You also do not want your credit report showing as you going to a whole lot of lenders for finance within the same time frame. So always be aware of the lenders that use automatic decision making tools as your application will likely get declined for bad credit and this will make it even harder for another lender to accept you for finance.
I know you can get approval, so I've left a link for you to click on in the resource box below. good luck and thanks for reading!
I've been involved in the credit assessment department of major banks in Australia for numerous years and have seen a ton of applications for bad credit debt consolidations loans, purchases and regular refinances. Bad credit is extremely common these days, in fact it's fairly easy to get slapped with a default from a telco company by perhaps being oversees, moving house or simply forgetting. This does not make you a bad person even though the bank may look down upon you and your application will certainly be looked at more closely.
From working for years in the credit assessing departments in major banks, I have seen many applications for bad credit loans that contain a small telco default and so many times the applicant is totally unaware of this. Yes, a red flag will be raised on your application if you have a default, however most lenders will also consider the severity of the default, the amount, the circumstances, and the time taken for it to be repaid. One thing is for sure, you will need a written explanation surrounding the default so be prepared for this.
For someone who has got themselves into a poor credit position, the chances of their approval will decrease but again there are lenders who are willing t take on this risk. The credit report may contain court judgements, large unpaid defaults or evidence of bankruptcy but this is no reason to give up. Bad credit loans make up a huge portion of the home loan market in Australia and many lenders actually prefer these type of loans.
When it comes to bad credit finance, the lender will firstly look at two things when considering your application. First they will look at the amount of the debt registered against you on your credit report and secondly the amount of finance you are looking to borrow against the security offered or being purchased. This ratio is also called the 'Loan to Value Ratio' or LVR.
However, the final decision is not just all about the bad credit. There are other factors that will come into play and these include the other variable factors of the application. The applicant's income may be great and can easily service the level of debt, net wealth may be very high, employment may be stable. These are all good qualities on the application that the lender looks for.
The major lenders will be more difficult to get finance with, while non-conforming lenders will most likely consider it. Yes, the interest rate may be a little higher to take on this risk.
A non-conforming lender targets the poor credit market. They tend to be a little more flexible with their decision-making and in turn may charge a slightly higher interest rate or upfront fees, however these days non-conforming lenders are very competitive with the major lenders.
Make no mistake, a non-conforming lender is still very competitive with the major lenders in terms of interest rates and products offered. They may charge a slightly higher interest rate or upfront fees but if this means the difference between having a loan approved or declined then it may well be worth it for you.
You also do not want your credit report showing as you going to a whole lot of lenders for finance within the same time frame. So always be aware of the lenders that use automatic decision making tools as your application will likely get declined for bad credit and this will make it even harder for another lender to accept you for finance.
I know you can get approval, so I've left a link for you to click on in the resource box below. good luck and thanks for reading!
About the Author:
Ed Green has been involved in the mortgage industry in Australia for 15 years. His excellent free guide on bad credit loans can be found on his website. Your bad credit loan can be considered by his team of experienced mortgage broker who are happy to discuss your situation at any time.
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