Mortgages, Remortgages, Secured Loans and Personal Home Loans
04. Credit History
Your credit history is a record of all your past financial commitments and an overall look at your total debt, as well as your pattern of repayment . Credit reference agencies use this information in assessing your credit worthiness and assign a relevant credit score. Lenders then use this credit score as a factor in deciding whether or not to underwrite (supply you with) your loan or decide you have an adverse credit rating.
A bad credit loan is a form of financial help that you can use to purchase your dream house without them pestering about your poor credit past. Bad credit mortgages have been specifically designed to cater for this problem. It not only helps you to buy a home but also provides an great opportunity to re-establish your adverse credit past.
You may also like to look at the options of debt consolidation or even an Individual Voluntary Agreement (IVA). If you have a limited income and insufficient savings, buying a home is like a dream as it requires large amounts of money, which is simply out of question for you to find. If you also have adverse credit it becomes an obstacle to purchasing and borrowing.
You get an adverse credit score through an accumulation of making late payments,
missing a payment, defaulting on a debt, or fail to fulfil a financial contract or commitment. This information is reported to the major credit reference agencies.
The more of these reports the agencies receive, the lower your credit rating, which makes it harder to find a loan. You will have to apply for a bad credit loan or a bad credit mortgage. Other information that can cause a red flag in your credit report includes frequent job changes or address changes, or one or more County Court Judgements (CCJ) against you.
Individual Voluntary Agreement (IVA) are a relatively secure way of managing your debt as it is regulated and has to go through specific channels. Debt consolidation can be used as a more informal type of payback to Individual Voluntary Agreement (IVAs). This is where you bring all your debts together into one package as opposed to having several creditors at once.
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