Bad Credit Home Loans and Investment Loans
A poor credit history occurs when an individual has not made credit or utility payments and the lender or supplier makes steps to have this listed on your credit report.
You can access your credit report from Veda Advantage. You can access this for free, however, if you are impatient it can be dispatched within one working day for a fee.
A poor credit history severely impacts your chances of getting a loan. Minor credit defaults under a $1,000 may be over looked by some lenders but anything more requires a satisfactory explanation. All creditors must be paid before any lender will consider accepting a loan application
Therefore, if you are unable to get a loan because of;
poor credit history
poor employment history
previously bankrupt or Part 9 or 10 agreement
However, there is still hope in obtaining a loan.
Interest rates and fees depends on the level of your credit history. Typically, the poorer the credit the higher the interest rate. This depends on the following;
Number of defaults held against your name
The type of those defaults against your name. Utility defaults are looked more favorably compared to finance defaults such as credit card or loan defaults.
The dollar amount of the defaults. Generally, the higher the default, the higher the risk or interest rate
The greater the deposit the lower the interest rate
Gives the borrower a chance to improve their credit rating by allowing the opportunity to service a new loan.
Non judgmental lending rules.
Interest rates and fees are high.
Require larger than normal deposit or equity.