Everyone makes mistakes and bad decisions from time to time and this can often leave people in financial situations where they have a bad reputation with lenders. A bad credit finance broker is a specialist who uses non-conforming or “outside-of-the-box” lending policies.
These financing specialists are experts in assisting those with stains on their financed records who require a home loan. Bad credit finance brokers can help people whether they seek to buy a property or to consolidate debt be refinancing their existing loan.
People who have endured a great deal of enquiries, judgements, defaults or have filed for bankruptcy in the past can benefit greatly from these generous services. Let’s take a look at the key questions people ask before engaging a specialist bad credit finance broker.
Why engage a bad credit finance broker?
For those people who have a bad finance history and have applied for a loan with their bank, they have probably felt the harshness of rejection. Often times, people like this are dismissed by banks before even getting to speak to a real person.
Bad credit finance brokers will sit down with and talk to people about how their finances went awry and what the best method of getting their situation back on track is. They can advise clients on how to collect explanations and evidence that explains their finance history so that they will not be unnecessarily decline, adding another unhelpful enquiry.
How are bad credit finance brokers different?
The majority of regular lenders don’t understand how to assist clients with alternative solutions that don’t adhere to standard policies for lending. They tend to re-inforce stigmas against people who have made mistakes in the past, believing people with bad finance histories to be a waste of their time.
Many people who end up with black spots in their finance history were victims of unfortunate events in their life, like being made redundant from their job or falling too ill to work. Other events like divorce, business failure and the death of a family member can cause a drain on their household income.
Many people who have stains on their borrowing history might not even be aware of them. These people simply want a second chance and can often be better borrowers than those with no bad history because they have something to prove.
A bad finance broker is able to look past the red-tape and assist people who are still genuinely responsible and conscious of how to repay their debts.
What can a bad credit finance broker do?
This kind of specialist lender will essentially ask for all of the normal information that would be required in a traditional home loan. This information includes the borrower’s most recent payslip, a copy of their license and the competition of a short application sheet.
This information form will detail the borrower’s assets and liability position as well as the amount they are seeking to borrow. The borrower will need to give explanation for all of the stains on their borrowing history including:
- The time that the occurred
- The amount they were in regards to
- How the borrower has moved past the problems that led to the black mark
- Why the borrower is now in a better financial situation
Borrowers need to be as honest as possible. Being forthcoming about the sincere reasons for the negative finance history gives a better chance of having the requested loan approved.
Is a bad credit finance broker more expensive?
Sometimes they will charge very high fees before providing someone with service. It really depends on where the borrower goes to find a fair and reasonable bad credit finance broker.