A lot of people only find out they have a credit history issue after applying for a mortgage and being rejected because of what the lender found on their credit report.
But having a poor credit history does not mean you have to wait to get into (or
back into) the property market.
How do you get a bad credit rating?
Every time you apply for a loan – from a credit card to a car loan up to a mortgage for a house, the lender will look at your credit history. Every time they do they leave a record of what, and how much, you are applying for.
If you fail to pay a supplier (such as the phone/electricity company), someone who has provided a service, or a lender they can lodge an entry on your credit report which tells anyone doing a credit check after them that there is an issue. Even when paid,
the item remains on your history for up to 5 years.
If you apply for a mortgage and this type of issue is discovered, the banks may decide not to lend you the money.
The good news is that there are lenders who will potentially allow you to borrow even if you have multiple credit issues. Also, providing a standard bank a reasonable explanation about the reason for the credit issue may mean we can get a mortgage through
traditional channels straight away.
This means that you can possibly get back into the property market now instead of waiting for up to 5 years, or you can save that property you own and would love to hang on to.