BAD CREDIT HOME LOAN BROKER-BRISBANE

Your credit score and credit history can affect your ability to borrow money.

The team at Specialty Home Loans are accredited with a panel of lenders who cater for borrowers with credit impairment.

Call us to find a lending solution for your situation.   

How is your credit score calculated?

A credit reporting agency like Experian, Illion and Equifax collects information from credit providers like banks and utility companies, and use proprietary algorithms to calculate your credit score. 

The score sits within a range of 0-1000 (1200 for Equifax). Essentially, the higher the score, the higher your credit worthiness. Most lenders have a cut off for the minimum credit score they will accept.

Your credit score is calculated by: your repayment history, number of loans you have and the type and amount borrowed The number credit enquiries (even if you don't take out the loan) on your file. A high number of enquiries in a short period of time can adversely affect your score.  

I have a low credit score. Can I get a home loan? 

Lenders have different lowest credit score for home loan , most set the cut-off around the 600-650 mark, however there are some lenders who offer no credit check mortgage.

It is best you reach out to Specialty Home Loans to review your credit report and advise you lenders that will suit your credit history. 

How does my repayment history affect my borrowing ability?

Lenders can view your repayment history over the last 2 years in your credit report. The report shows when loans were opened and closed, the amount borrowed and the balance owing. More importantly, it tracks your repayment history of credit cards, car loans, personal loans and home loans over a 24 month period. 

On time payments are marked with a 0 or tick. If you miss a payment by more than 14 days, it will appear on the as number between 1-6 indicating the number of months overdue or X for repayments overdue by 7 months or more.

Lenders will use this information as part of their credit assessment of your loan application. If there are circumstances around the late payments such as illness, death in the family - it is best you discuss this with your broker so they explain the situation to the bank.

I think the information on my credit report is incorrect or I never received notice of my default?
 

If you think information displayed on your credit report is incorrect, you should contact your credit provider or credit report agency to fix the error.
 

I have a default on my file. Can I take out a loan?
 

A default means you owe $150 or more, for over 60 days, and have not taken action, despite two written notices being issued by the credit provider. A default is listed as a serious credit infringement or clearout if the provider can't contact you in a period of 6 months. Defaults stay on your credit report for 5 years while a serious credit infringement lasts for 7 years.
 

Depending on the circumstances surrounding the default, there are lenders who will consider borrowers with paid defaults. In their assessment, they will assess factors such as amount owed, period of default, reasons for default and number of defaults.
 

I have a previous judgement on my report. Can I take out a loan?
 

A judgement occurs when a creditor (an individual or company that you owe money to) takes you to court and you are found to be legally liable for the debt. 

A settled judgement will be considered by some lenders.

Don't let your past stop you from realising your property goals. Speak to the Specialty Home Loans - your Brisbane Bad Credit Home Loan Broker.

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