It is often difficult to obtain a loan when you have a bad credit history, especially when you’re applying for a home loan. But it doesn’t have to be the end of the world because you can easily take some steps to get yourself in a better position.
Most of the time this will mean trying to tidy up your credit file and getting rid of any adverse reports. Your credit file will contain a history of every application you have made for credit during the last 5 years. It will also contain a record of any loans which have been in default, in other words when you have not made repayments on time. It will also have a record of any court judgements or bankruptcy actions which have been taken.
In the majority of cases, if you have some credit defaults which have been paid or court judgements which have been satisfied, the records will drop off your file within a five-year period.
In some extraordinary circumstances however it might be possible to have these defaults erased from your credit file in advance of the statutory 5 years.
The only way you can do this is to consult with a specialist in the area, usually a solicitor, who can assist you in having your credit file updated.
Sometimes, if the defaults are many years old and you have had a clean history for at least 2 years, there may be some lenders who are willing to help you.
During the global financial crisis most of these alternative lenders, often called non-conforming lenders, disappeared from the market. Over the past year however many have been re-entering the market and are now open for business again.
It depends on how much money you are looking for too.
As far as home loans go you will need to have saved a substantial deposit before you will qualify for a bad credit home loan. As a general rule you will need at least 10% or mre, depending on your credit history.
For other people who are simply looking for a short-term funding arrangement, there are many payday lenders who are willing to advance funds under special circumstances. Private lenders such as these have stringent criteria but it is easy to test your eligibility by filling out an online application form.
You need to be careful however because many of these lenders have high rates of interest and you could find yourself in a spiral if you are not able to make the repayments on time. Make sure you check all the conditions before you enter into an arrangement and ask plenty of questions so you are absolutely clear.
The first step when applying for a loan with a private lender is to fill in an online application, making sure you complete the answers truthfully and completely. You will usually get an answer back within 24 hours so you will not be left hanging too long.
Private money lenders for bad credit loans offer short-term solutions, so it might be a good idea to talk to a mortgage broker about your range of options first.

You might be surprised to hear that most of the bad credit lending for home loans is being done at the moment by private lenders. Mainstream banks have never been involved in lending to people with bad credit, and things don’t look like changing in the near future.

Remember, this only applies to Home Loans, I cannot help with Personal Loans.

It’s not important where the money comes from, what is important is that it provides opportunity for people who need another chance. As you consider the benefits of looking at this type of finance you might like to give consideration to calling me first before you go much further. By the way, you can do this by phoning me on 1300 133 193, no strings attached, no obligations.

Can I ask you though to imagine how you will feel when you know that your credit problems could be solved with one single phone call.I know that you would welcome the opportunity to rid yourselves of the problems, the phone calls and the lack of sleep that you experience while you are going through this period of your life.

You can relax about the cost of doing all this because I don’t charge anything for my service. It is the lender who pays me and there is no cost to you at all for my services. It is easy to know that you can get what you’re looking for without too much hassle isn’t it?

It is also okay not to give me a ring now on 1300 133 193 but the sooner you do that you will feel so much better.

Remember I only deal in the best Home Loans that suit your individual needs.

Is it possible to go from

to

Well, that’s just what happened for Nathan and Amy recently!

Amy rang me to see if I could help. They had approached their bank to consolidate a few personal loans into their home loan. They had been having difficulty keeping up with the repayments because of the high interest rate charged on the personal loans.

If they had been successful in ahving the loans consolidated, the mponthly repayments would have decreased significantly, making life easier.

Naturally, their bank declined their application giving the slow repayment history on their loan as a reason, even though it was easily demonstrated that they would be easily able to repay the consolidated loan.

I know it seems hard to understand, but that’s the way all banks think.

Luckily, there are some lenders who take a different approach to lending and although they usually charge a higher rate of interest, the end result can mean great savings.

This was the case for Amy and Nathan. Their loan was approved and they saved over $760 in monthly repayments!

Call me if you want to save too.

Call 1300 133 193

So, what is happening to bad credit lenders?

That’s the question of a lot of people have asked over the past few months and rightly so.  More and more people are facing difficulties in meeting repayments on their home loans and are seeking information as to what type of home loan lender will be able to help them.

Traditionally, bad credit lenders have filled a gap in the market where traditional banks and lenders cannot cater for anybody suffering mortgage stress.  Today, in the tight credit conditions which dominate the financial sphere, there are only one or two “lenders of last resort” as they have come to be called.

Many of these lenders have disappeared from the scene, but recently there are some emerging signs that this lending market is again on the move.  For example, one or two lenders are prepared to lend up to 90% LVR even for people with a bad credit history ie those with credit defaults and judgements.  They may even go one step further and offer some low Doc products for this type of borrower but there are some conditions attached.

Applicants for these types of loans must have been in steady employment for at least 12 months or, if they are self-employed, must have a registered ABN of at least six months duration. But these loans fall into the category of’ “rate for risk” meaning that the higher the loan to value ratio and the shorter the period over which the ABN has been registered, the greater the risk and, therefore, the higher the interest rate.

The interest rate is also determined by the severity of the credit impairment. So, although the conditions are stringent and the interest rates are comparatively high, the fact that some of these bad credit lenders are back in the market is a good sign for the future.

It is easy to rush into a loan or a refinance when you are under stress. I recall one of my clients say to me:

I wish I’d never heard of them. First they didn’t clarify the interest rate we’d be charged, then the fees took a large chunck of the cash we were relying on to make life a little easier. Looking back we didn’t come out of our difficult situation much better at all.

The last thing you want to happen is to jump in and find out the “small print”when it’s too late.

You need to do a lot of research before you make your decision, but you need expert help to do it.

That’s where Bad Credit Solutions comes in.

I guarantee you a personalised approach and a free evaluation of your situation before you sign anything.

This is the only way you’ll know whether you are doing the right thing. It takes only a half hour or so and with my personal contacts with many bad credit lenders, including some private lenders, you can be assured of the best result and genuine peace of mind.

Call me on 1300 133 193 as soon as possible, but remember, I provide a specialised service and can only help you if you live in Brisbane, the Gold and Sunshine Coasts and Toowoomba.

Or, you can fill in your details here and I’ll contact you direct.