Bad credit, bankrupt or just missed some payments

We don't mean to be blunt

We need to convey useful information so we don't waste your time and ours, so we apologise now if some of what we say below appears a little blunt.  We don't wish to offend and we genuinely want to help where we can.  However, our approach is not to 'beat-around-the-bush', we tell you what you need to know upfront. 

The nature and scale of your previous credit issues is relevant

You will probably understand the relative scale of your credit issues. 

As a guide, one or two minor defaults, to say a utilities company, ranks lower on the "bad credit" scale than credit card defaults, or defaults with banks and other lenders.  These defaults are 'up there' on the "bad credit" scale. 

Minor blemishes like an unpaid phone or gas bill can be relatively immaterial - unless it happened very recently, in which case it will take on an almost unbelievable significance - but we'll deal with that. 

Credit card and banking defaults can be very problematic but, depending upon other mitigating factors like your savings or equity, your earnings, and the purpose of the loan, we may have options for you.

If non-payment of your commitments is habitual then we probably can't help. 

The story behind bad credit episodes is important

When an event or circumstances causes your credit history to become blemished, but either side of this event you have maintained a good credit record, then "the story" that explains the event becomes very important.  We may ask you for detailed explanations and evidence of the event or circumstances which caused your temporary credit problems. 

Bankruptcy

A previous bankruptcy may not be an insurmountable problem.  However, the mitigating factors will need to be strong and it is best that we deal with this case-by-case. 

Mitigating factors are critical

The risk of a loan payment defaults by someone with previous credit problems is significantly higher than by someone with a clean credit history.  Therefore, all lenders seek to mitigate this increased risk of default with other compensating factors. 

Put simply; the worse the credit history, the stronger the mitigating factors must be. 

A high level of equity or savings: a lender will require you to put 'at risk' a significant amount (say 20% to 40%) in order to give the lender comfort to take a risk with you.  How much you must put at risk (i.e the level of your savings or equity) will depend on on many things including your credit history. 

A strong reliable income: this is self explanatory.

A reasonable explanation: the reasons for previous bad credit need to be plausible and verified. 

Time heals bad credit history: your most recent history is the most important.  If your last 3-5 years is unblemished - great, this helps a lot. 

Co-borrower with clean credit history: if available, this can be a very helpful mitigating factor.

A poor credit history with very few mitigating factors is normally a waste of time for both of us.  We will tell you straight if we cannot provide you with a useful solution. 

The first thing to do is contact us

The more information you can give us the better our initial assessment can be. 

If you think your mitigating factors will outweigh your credit history then we recommend that you get straight on with a loan application. 

However, if you are not sure about how your situation will stack-up, why not just get in touch using the contact form here.  Please give us as much information as you can so we can give you a decent answer straight away.