logo

Bad Credit? Here’s How a Finance Broker Can Help You Get a Loan

February 7, 2023

 

Bad credit can be a major obstacle when it comes to getting a loan. It can be difficult to find a lender willing to take a chance on someone with a poor credit history. Fortunately, there is an alternative: a finance broker. A finance broker can help you get a loan even if you have a bad credit rating.


In this post we'll discuss why your situation is absolutely NOT hopeless and how a good finance broker can help you find a loan even if you have bad credit.


 

What is a Finance Broker and how can they help?

 

 

A finance broker is a professional who specializes in helping people find the best loan for their needs. They work with a variety of lenders to find the best loan terms and rates for their clients. They are knowledgeable about the different types of loans available and can help you find the best option for your situation.


Importantly, finance brokers have access to a network of lenders and can help you find loan options that are tailored to your specific financial situation. Finance brokers can also help you understand the terms and conditions of different loan options, and they can negotiate with lenders on your behalf to secure more favorable terms.


Additionally, a finance broker can help you identify areas where you can improve your credit score in order to increase your chances of getting approved for a loan in the future. Overall, a finance broker can provide valuable guidance and support throughout the loan application process, particularly for individuals with bad credit.


A good local finance broker will generally help you with the following steps:


  1. Check your credit report: Start by getting a copy of your credit report to see where you stand. Look for errors or discrepancies that could be negatively impacting your credit score.
  2. Explore your financing options: Your finance broker should help you understand and consider the different types of loans available to you. These could be options such as personal loans, unsecured loans, a cash out refinancing of your home eventually, and other secured loans. Each of these options has different requirements and interest rates, so it's important to speak to your broker to understand them, and to choose the one that fits your needs.
  3. Improve your credit score: While this won't help you get a loan immediately, it's important to start improving your credit score to increase your chances of getting a loan in the future. Paying bills on time and paying down debt will massively help boost your score over time.
  4. Gather your documents: Once you have chosen a loan option, gather all the necessary documentation, such as proof of income and employment, bank statements, and identification.
  5. Consider a co-signer: If you're having trouble getting approved for a loan, you may want to consider finding a co-signer with good credit. This can increase your chances of getting approved and could result in a lower interest rate.

 

 


How Can a Finance Broker Help You Get a Loan with Bad Credit?

 

 

A finance broker can help you get a loan even if you have a bad credit rating. They can help you find lenders who are willing to take a chance on you despite your poor credit history. They can also help you understand the different loan options available and which one is best for you.

 

 

A finance broker can also help you negotiate better terms and rates on your loan. They can work with the lender to get you the best deal possible. This can save you money in the long run and make it easier for you to pay off your loan.

 

 


What Should You Look for in a Finance Broker?

 

 

When looking for a finance broker, it is important to find one who is experienced and knowledgeable. They should be familiar with the different types of loans available and be able to explain them to you in detail. They should also be able to answer any questions you have about the loan process.

 

 

It is also important to find a finance broker who is trustworthy and reliable. They should be willing to work with you to find the best loan for your needs. They should also be willing to answer any questions you have and provide you with honest advice.

 

 


How We Can Help

 

 

If you have bad credit, a finance broker can be a great resource. They can help you find a loan even if you have a bad credit rating. They can also help you understand the different loan options available and negotiate better terms and rates on your loan. When looking for a finance broker, make sure to find one who is experienced, knowledgeable, and trustworthy. With the help of a finance broker, you can get the loan you need even with a bad credit rating.


At Logan Home Loans, we understand that a bad credit history can be a major obstacle when it comes to securing a home loan. But don't worry, because we're here to help! Our team of experienced mortgage brokers has helped many clients with bad credit histories find the right loan for their needs.


We work with a wide range of lenders who specialize in helping people with bad credit, so we can help you find the right loan even if you've been turned down elsewhere. We'll take the time to understand your unique circumstances and help you build a strong case for your loan application. So if you have a bad credit history, don't let that stop you from achieving your dream of owning a home. Contact us today to learn more about how we can help you get the loan you need.

 

February 2024 Cash Rate

February 6, 2024
Property and cash rate predictions for 2024

Banks “stand ready to help” people with home loan problems

January 3, 2024
The Australian Banking Association (ABA) has launched a campaign encouraging borrowers struggling with loan repayments to seek help, in a valuable reminder there are options available if you're finding it hard to keep up with your mortgage. Your bank may be able to: Reduce your home loan repayments. Pause your repayments temporarily. Switch your repayments from principal and interest to interest-only temporarily. Increase the length of your loan (thereby reducing the repayments). ABA CEO Anna Bligh said banks understood many borrowers were facing challenging circumstances. “Banks stood by their customers during the COVID-19 pandemic, deferring payments for people who for the first time in their lives found themselves unable to pay. Banks stand ready to help people again now,” she said. “People who are finding their finances are stretched should not feel they have no options and they have to do it on their own. Banks have dedicated, highly experienced teams ready to help.” As your broker, I'm also here to help. You're welcome to contact me for advice; I can then speak to and negotiate with your lender on your behalf. The key thing is to move fast, because the further you get ahead of the problem, the more flexible and helpful banks tend to be.

Is 2024 the year to buy property?

January 2, 2024
The Reserve Bank of Australia has rounded out 2023 with the decision to hold the nation’s cash rate at 4.35%. 2023 hasn’t been an easy year for homeowners or ambitious first-home buyers. The cash rate increased from 3.10% to 4.35% over the course of eleven months in the RBA’s bid to bring inflation back within its target range. According to data from the RBA, the average home loan rate at the start of the year (for existing home loans) was 5.46% p.a.. If the lender passed on interest rates in line with the increased cash rate, that would make the interest rate 6.71% p.a.. Based on the average Australian mortgage of $599,000 on a 25-year term paying principal and interest, that equals an additional $459 per month simply to service the mortgage (from $3,661 to $4,123 per month). For first-home buyers, the average time to save for a deposit has increased to 14 years, according to a recent paper by the Australian Housing and Urban Research Institute Limited, with the national ratio of median house price to median income now sitting at 8.5. That is the hard reality many Australians are currently facing. So the question is, what will 2024 bring? Short of looking into an Australian-economy crystal ball, we can’t predict exactly what will happen with inflation, the cash rate and therefore interest rates. However, there are a couple of factors to consider. The RBA will meet only eight times in 2024 to determine whether to move the cash rate, down from the eleven in 2023. This means potentially less movements through the year. The next cash rate announcement will be 6 February. Economists from the Big Four predict the cash rate is at, or near, its peak. Some predict at least one more rate hike in 2024 and rate cuts likely not happening until at least December. Despite predictions of a decline in house prices in 2023, they have actually continued to increase in most areas around the country. This could be good news for refinancers as we enter 2024, as they could find their equity has grown. Why 2024 could be a good time for first-home buyers Despite some potential challenges, 2024 could actually be a good time to get into the housing market. Here’s why. Savings interest rates are up - the pro of the cash rate going up is that savings interest rates also tend to go up. This can help expedite saving for a deposit. It could be cheaper to be a homeowner - according to PropTrack data, it is now cheaper to buy an apartment rather than renting one in most capital cities (based over a ten-year period with a 20% deposit). In fact, a third of properties nationally are cheaper to buy than rent. The First Home Guarantee has expanded - in 2023 the eligibility criteria for the First Home Guarantee, Family Home Guarantee and Regional First Home Buyer Guarantee was expanded, enabling eligible buyers to get into the market sooner. This means if you have a 5% deposit (or 2% if you are a single parent or guardian), you may be able to use one of the schemes to purchase property without paying lenders mortgage insurance. ‘Help to buy’ scheme to be introduced - the federal government has announced plans to rollout a new scheme that will help up to 40,000 eligible buyers with as little as a 2% deposit get into the housing market with lower repayments. If 2024 is the year you want to purchase your first home, it is a good idea to speak with your broker to find out how much you may be able to borrow and set a plan in place to achieve your goal.
Show More
Share by: