If you have bad credit, Revive Financial can help you get approval for a bad credit home loan.
A bad credit file is one of the main reasons home loan applications will be declined by major lenders in Australia. We see things differently at Revive Financial and firmly believe that everyone is entitled to a second chance. That’s why we offer bad credit home loans.
What is Bad Credit?
In Australia today more than 600,000 people are considered to have ‘bad credit’ and their credit risk would be seen as ‘high to extreme’, according to credit reporting agency, Equifax.
Bad credit refers to the current status of your personal credit file. Your credit file is a record of your financial and borrowing activity. Certain actions are noted on your credit file. Some actions will give you a bad score or rating, while other actions will help you maintain a good credit score.
Lenders will consider your credit score before approving your loan application. Your loan may be declined if you have bad credit.
Things that Might Impact Your Credit Rating
Lenders will note a default on your credit file when you fall behind on your repayments. Banks will be more cautious about lending you money depending on the defaults you have. This is because you would be considered a high risk client.
Too Many Enquiries
You receive a mark on your credit file each time you apply for a loan. Too many enquiries will give you a bad score regardless of if you have been approved or declined.
Almost all your debts are listed on your credit file. Having too many debts on your credit file will prevent you from proving you can afford your new loan.
Unpaid Bills or Tax
The law has recently been changed allowing your tax debt to be noted on your credit file. Similar to unpaid credit card and personal loans, unpaid bills and tax debt can give you a default on your credit file.
Payday and cash loans weigh heavily on your credit score. Even if they are repaid on time and in full. Major lenders will steer away from lending to people who have needed to rely on these types of loans.
What are Bad Credit Home Loans?
A bad credit home loan is a home loan offered to people with a bad credit rating. Bad credit home loans are offered people who have previously been declined a loan by another lender.
Bad credit home loans are no different to home loans offered by a major lender, except that it is available to people who have a bad credit rating. High risk borrowers are usually people with a bad credit rating. This is because there is more of a chance they may default on their mortgage repayments. Specialty Lenders such as Revive Financial offer bad credit home loans.
Bad Credit Home Loans to Consolidate your Debt
Like all lending products, there are pros and cons and you should always do your research to determine if a bad credit home loan is the right product for you. A bad credit home loan is a fantastic product if you are struggling to manage your unsecured debts and want to use the equity in your mortgage to consolidate your repayments.
Major lenders may reject your mortgage refinance application if you are struggling to make payments on your credit cards and personal loans. However, a Revive Financial Home Loan would allow you to reduce your unsecured debt amount and consolidate it into your mortgage. This will leave you with one repayment, improved cash flow and a lot less stress!
Home loans usually span 25-30 years, but they attract a significantly lower interest rate compared to credit cards and personal loans. Credit cards can charge up to 20%p.a. on balances. Consolidating these debts with a bad credit home loan will make the repayments much easier to manage and you’ll avoid further defaults on your credit file.
Consolidating your debts with a bad credit home loan would simplify your repayments and make them easier to manage. Over time, your credit rating would improve, allowing you to revisit your mortgage from a better financial position.
What to Be Aware of with a Bad Credit Home Loans
Specialty lenders who operate outside the standard lending criteria offer bad credit home loans. This allows them to offer loans to people who might be a higher risk client, but could really use the financial assistance. Bad credit home loans won’t offer the same interest rates as a standard home loan. However, Revive Financial can also negotiate your debt levels down, instantly improving your financial position and counter-balancing the interest rates on your new loan.
You also need to be aware of any breakage fees or early pay out costs of your existing mortgage before proceeding with a refinance to a bad credit home loan.
Tired of Hearing No? Revive Financial Can Say Yes!
If you’ve been knocked back for a home loan or mortgage refinance by a lender due to bad credit, Revive Financial can help you.
Revive Financial are one of the few lenders in Australia who understand that people who are struggling with their finances are often the ones who need a new loan most! Circumstances can change, life can get tough and we want to help. We’ll get you over those bumps in the road, not make things even more difficult. We provide financial assistance to people with high levels of debt or have a bad credit rating.
Revive Financial will help you if you’ve been declined by another lender. Don’t be too embarrassed or scared to try again. Revive Financial considers bad credit home loans as Loans for good people, stuck in a bad credit situation.
We Guide You through the Process
Our professional lending specialists work with you to complete and submit the application for a bad credit home loan. We begin by taking a look at your overall financial position, then make recommendations how to improve its structure. If it’s suitable, we would then negotiate with your unsecured creditors to reduce your debt and improve your financial standing. From here you are in a much better position to apply for a loan. We help you to complete the documents and bad credit home loan application. Revive Financial will keep in touch and help you explore further opportunities as your finances improve.
We help by consolidating your debts, negotiating reduced settlement amounts and refinancing your existing Home Loan. This could save you thousands and get you back on track.
It doesn’t matter if you have late payments, credit cards over the limit or are behind on loan payments. You could have defaults, judgements, unpaid tax debt or even be facing bankruptcy and yet as long as you have an existing home loan, we can help! So give us a call on 1800 534 534 or fill in the enquiry form.
For more information on bad credit home loans and how we can help, check out our bad credit home loan page here.