Bad Credit Home Loans Australia Guaranteed Approval
People with bad credit scores often have second thoughts approaching a lender for financing. After all, their credit standing can be reason enough for lenders to turn down their loan request. In Australia, more than 600,000 borrowers are tagged by Veda, a well-known credit rating agency, as having a risk of high to extreme in terms of defaulting credit.
In the financing industry, bad credit home loans Australia guaranteed approval are considered as non-conforming financing. Borrowers tagged with bad credit are considered high risk to lenders.
Since lenders will want to offset the risk behind granting a cash loan to a bad credit borrower, they may require a deposit to guarantee the loan. Often, they will ask for 20% of the amount being borrowed. This is also referred to as an 80% LVR or Loan-to-Value ratio. The reason for this is that lenders base their assessment on your credit score, and it can take years to clear up a blemish on your credit record.
We assist you every step of the way
At SamedayLend, our financial specialists will work towards finding the right bad credit home loans Australia guaranteed approval for you. We believe that no matter your credit score, getting access to financing when you need it is essential. Do note that this would often mean getting subjected to more expensive loan fees and other charges. After all, our lender partners would need to minimise the risks they are taking on for granting you a loan.
Essential guide to bad credit home loans Australia
Make the most use of each loan
People usually forget that bad credit home loans are not a specific financing product. Instead, they encompass a class of other similar financing tools that are aimed for bad credit borrowers who wish to get access to home loans or any type of online loan for that matter. Lenders will look into your current financial standing and may consider offering you more competitive rate if you can show proof that you are a low-risk borrower. This can be done by putting in a bigger deposit towards the property you are buying. You can also add your employer or landlord as additional references, add a co-signer to your loan application as well as supply the lender with copies of good current ban statements. Keeping up with your loan repayments will also help you secure better interest rates in the future should you consider applying for financing again.
Consolidate your debt with bad credit home loans
If you have outstanding debts ad you got approved for a bad credit home loan, this can be a good opportunity for you to combine all your debts into one single loan with a single interest rate. Personal loans, payday loans, mortgage debts as well as credit cards may be all consolidated under your current home loan. The good thing about this is despite the longer term that mortgages carry, they do come with more affordable interest rates. This gives you the chance to pay less on interest compared to what you are currently paying. Before going this course, however, it is best to seek the help of a financial adviser first.
Be honest at all times
If you’re thinking of tampering your records because you have a blemished financial history you cannot afford to reveal, think again. Banks and lenders will have access to your credit history so there is no point in lying on your application. More importantly, doing so will only leave a bad impression where lenders will see that you are not being forthright with your situation. Remember, thousands of other borrowers out there share the same predicament as you. Dishonesty is not going to help.
Check your credit history
You have the option to check your credit records online. In Australia, the major credit reporting agencies are Dun &Bradstreet or D&B, Experian and Veda. Online platforms that offer credit reports submit the application through these agencies. In most cases, it will take about 10 business days to secure the report. The service is supposed to be free, so steer clear from websites that offer these details to you for a fee. Checking your credit history is a good idea prior to applying for a home loan as this gives you the opportunity to check for any inconsistencies and errors so you can get them revised.