For many people, it was a series of careless mistakes that led to their bad credit ratings. In your twenties, it is common for people to take out a credit card, go on shopping sprees, and neglect paying electricity or water bills. You’re young, and long term plans just seem boring and unnecessary, right?
Yet, as years pass, these small actions do accumulate into credit ratings. They are determined by credit bureaus who take into your account your financial history. And if your rating is scored below 500, your credit rating is considered poor – making it hard to get loans in Warriewood, affecting your ability to make those milestone financial purchases in later life.
So, if you are in that exact position, let’s look at a list of strategies to receive these hard to get loans in Warriewood.
1. Apply for lenders who do not use credit ratings
For obvious reasons – lenders who use computer systems of credit scoring will automatically decline your application,before you can explain your situation.Automatic credit scoring will make harder to obtain that hard to get loan in Warriewood. It is therefore important to research which lenders utilise these digital systems and avoid them, as you will be wasting your time.
A hard to get loan in Warriewood is best received by humans, who have the empathetic ability to listen to your credit rating’s reasons, evaluate your situation and make a human judgement based on your character.
2. Evade Lenders Mortgage Insurance (LMI)
If you cannot afford more than 20% of the property, there are two approvals you need to seek for a home finance. This makes it twice as difficult to receive the hard to get loan in Warriewood.
These two lends are from the lender and the mortgage insurer, whose role is to insure the lender in case of default. To avoid making it more problematic, ensure you have enough funds for 20% of costs like stamp duty, legal fees and the deposit. This may be challenging – but will save you time and effort in the long run, as you only have to get your application assessed by one entity to obtain that hard to get loan in Warriewood!
3. Show that your financial situation has improved
Proving that you are now fully committed to managing your financial responsibilities is crucial for obtaining a hard to get loan in Warriewood. Sure, you made mistakes before, but the lending institution needs to see a change and improvement in your spending and saving behavior.
Not only does this mean than you need to be prompt in your credit card payments, but also rent and utilities. If the lenders can also see evidence of regular savings, this will suggest future ability to meet payments in time and strengthen the likelihood of attaining the hard to get loan in Warriewood.
4. Apply to specialist lenders
Although popular lenders may not be willing to risk their own finances and help, there is a growing market for specialist lenders that price a hard to get loan in Warriewood based on risk.
There are also credit unions and Peer to Peer lending services. These services are individuals who have less rigid rules and are more sympathetic to your situation. When you deal with these services, you can rest assured that you are communicating with real humans that are more likely to grant you that hard to get loan in Warriewood.
5. Shop around for many – but only apply for few
Although it is crucial to compare and investigate the different options for your financial situation, never actually apply with a lender until you are certain of your choice! Every time you make an application for a hard to get loan in Warriewood, it is marked in your credit report – and if there are consecutive declines on your report, it will only tarnish it further.
Mortgage brokers have experience in assessing the likelihood of your application getting approved. Be careful of lenders who charge extremely high up-front fees with promises that they will ‘approve everybody’ – they are con artists who will make it extremely difficult to get out of debt!