Loans for Homeowners with defaults
Loans Secured on your property
Your Situation
Sadly having a default recorded on your credit file will have a negative effect when trying to obtain finance! It will reduce the number of available product and rate options available to you without doubt.
Why will it do this?
Any potential finance
bank or lender may use a system called credit scoring.
Commonly a computer-based process whereby the underwriting of your application
and final decision is made by a computer program. Information from your
application and credit file is input into a computer and a numerical
score is determined, effectively rating the application. The scoring
within the system will be set to relate to the criteria needed to qualify
for a loan whilst putting greater emphasis on the key issues most important
to that lender. The implication of this system is that for the lender
and the borrower it is a swift way to determine a right product for
each person.
And how will this affect me?
If you have a default or defaults recorded on your credit file then they will be screened by a computer-based credit scoring system. A Computer-based credit scoring system will decide if you qualify by using your historical details to access how you have paid debts, reviewing your present circumstances to determine your current ability and presuming the probability of your future payments based on the profile built up from your application and matching it with the historical results of others with similar profiles.
In a nutshell, if you have defaults showing on your credit file, a computer based credit-scoring system will not be able to establish the reason, your score will be reduced and your rating diminished resulting in the possibility that you may not meet the required threshold to be accepted for the loan you applied for.
But it does not seem fair as now I pay all my debt on time?
It may seem like you are being penalised for having a previous debt problem. The reason behind any defaults may have been beyond your control and unforeseen. You have always had good intentions to repay any credit you arrange but computer based processing systems cannot see why the reasons for the defaults only that they are there.
So if I need a loan what can I do?
The GOOD news
Edwards & Associates has access to specialised lenders. Lenders who understand that in today’s environment when finance is used more commonly, hiccups and problems can and will often occur, but there may still be a need for finance in these cases. These lenders will look at an application regardless of its credit history and use a more human approach to lending.
Obviously you will need to meet certain criteria but through speaking with you, these types of lenders aim to build a relationship with their customer and try to understand the reasons behind their previous credit problems and then make a decision if the application is suitable.
This is great news for customers as it gives us all an opportunity to make the purchases that we want but sometimes cannot afford from our savings.
These types of lenders will on occasion use interest rates that are higher than your standard bank loan and will be rates they feel reflect your circumstances. You should always be clear about the terms of any agreement you enter into. It is important to note however that taking out a loan and repaying it well will be a way of having a positive impact your credit rating and will help you in future obtain finance at better interest rates.
So apply now and let
us find a lender that will take into consideration your personal circumstances
and provide you with the loan you are looking for.
All loans are subject to status, written quotations are available on request. We also offer a range of plans where rates may differ from 7.3% APR variable to 29.9%APR variable according to your circumstances. However most of our clients qualify for a typical APR of 12.9% APR variable
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
