Having a bad credit rating has far reaching effects.  Not only can it become extremely difficult to get a loans, but also to establish equipment rentals, leasing and property rental. 

Individuals who fail to meet financial commitments are reported to credit reference agencies.   A bad credit rating lasts for 5 years on a person’s credit history and may also affect the job prospects of a person who is applying for a position in accounts, or in the financial field and other allied industries. 

Getting Loans with an Adverse Credit History

Financial lending institutions make credit decisions on an individual’s capacity and willingness to repay the debt.  They look to an individual’s credit history to ascertain whether they have kept to past credit financial commitments.   Along with the current information provided by the individual in their application they can ascertain the following: 

• An individual’s desire and/or capacity to meet past financial obligations
• Whether an individual has disclosed all their current debts
• An individual’s true identity and other personal information through identity match 

If there is a high risk that the lender will not be repay their financial obligation, they will either be refused, asked to provide guarantors, or, higher deposits to justify the increased risk. 

Getting Mortgages with a Poor Credit Score

Getting a mortgage with an adverse credit history may be still possible but as with loans they will generally cost an individual far more. Mortgages are secured on properties and so the lender has a greater deal of security; but mortgages are also generally for far higher sums than personal loans and if defaulted upon there are costs involved in realising the property’s value.

If you are aware that you have a blemished credit history it is best to be upfront with the lender from the beginning.  It will ultimately save you time and money and prevent yet another credit enquiry being lodged on your credit history.   Breez Finance welcomes your enquiry as to whether you could obtain a mortgage through our organisation.