Applying for a Loan with Poor Credit

Applying for a Loan with Poor Credit

Poor credit is said to affect 1 in 6 Australians according to a recent survey and although this unfortunate event is becoming more and more common; there are fewer measures being put into place to help individuals in these positions. With bad credit, a mortgage application can often be out of the question, but with the aid of a financial broker to offer advice and support, as well as other methods that can help to improve a credit score – there are still solutions available.

Speak to a broker

In most instances a potential applicant suffering with an unappealing credit report may want to seek advice from an expert. A broker should be able to evaluate the score and offer advice on how to improve or, if in some cases they may be able to recognise is certain criteria is met, to allow the borrower to apply for a certain type of home loan.

Consider your finances

One of the most likely things that a broker will suggest will be to begin rebuilding a credit score and this can be done in a number of ways. From taking out short term loans and keeping up with repayments, right through to eliminating any existing debt; there are many options available for those with poor credit that want to turn over a new leaf and start to rebuild their financial reputation.

Get advice before proceeding

In almost 100% of cases, a bank will record any information relating to an application rejection. This can be detrimental to a potential borrower, as this is the type of information that can follow them around even if they apply to other lenders. Rather than diving in head first and hoping for the best, it can be a good idea to obtain advice from a finance specialist such as a broker.

Poor credit really doesn’t have to spell the end of a mortgage application; in fact, even those with highly unappealing scores could turn their finances around and go on to secure a fair deal with flexible repayment options. And in order to achieve this, many turn to brokering agents for advice, guidance and support.