If you’ve ever tried to apply for a loan, you’ll know how important a good credit report can be. Along with a number of other factors, a good credit report tells the lender that you are a reliable borrower, and therefore eligible for a home loan. On the flip side, a poor credit report can greatly impact on the likelihood that a lender will not back a loan approval. Whilst this seems disheartening, don’t fret – adverse credit history does NOT mean you can’t get a loan. It just means you’ll need a loan specialist!
Debunking the myth of poor credit
Firstly, let’s start by saying a poor credit history does not automatically rule a person out from getting a loan. It just means that a person may no longer be eligible for some of the more traditional or ‘prime’ loans.
There are still a large range of home loan options still available to someone with a poor credit history, but it usually requires someone with industry know-how to help uncover the loan options that are ideal for your situation.
How can a mortgage broker help?
A mortgage broker isn’t tied to just one lender, but usually a large number (for instance, at ACHL we have access to over 40 lenders)! This means that mortgage brokers can call on their knowledge of different lender products and uncover a loan that suits someone with poor credit history. Admittedly, these loans are usually at a higher rate than the traditional home loans, however a good mortgage broker will reassess the borrowers situation in the near future, and should the borrower have made the correct payments on time, move the to a more traditional home loan at a lower rate.
Call ACHL now
At ACHL, we are a loan specialists and can help our clients with their finance needs. Call us now on 1300 797 338 and speak to a member of our team about getting the loan that’s right for you.