Loan Saver Debt Consolidation Blog

They are a fact of Life. There will always be a form of record keeping to attempt to track the credit history of a prospective client. For all the misgivings and bugs in the current system, the credit tracking system will be there for the foreseeable future.

A typical Credit Report can contain a multitude of information including:

• Given names and alias’s.
• Drivers Licence number
• Past and Current Addresses
• Work Histroy
• Credit Enquiries
• Directorships
• Paid Credit Defaults and Unpaid Credit Defaults Defaults
• Bankruptcy, Part 9 Debt Agreements and Part 10 Insolvency Agreement Information
• Judgements
• Court Actions
• Plus other information as it becomes available.

If you have a question about your credit file, or you have been declined a loan because of your credit history. Contact Us or Apply for a Loan for more information.

Is it possible to repair your credit file?

This is one of the questions most asked by our clients. Credit providers must remove or amend incorrect on credit files. You may have a good chance of amending your credit file if:

• You kept details of the credit contract that caused the credit default?
• Will the credit provider or a third party accept fault for the breach in credit default.
• You cannot amend your credit file in matters of fact or public record.

Over the last few years Debt Consolidation has been the cliche’ term used to describe bringing all of your loan accounts into one. The point of view is that this will alleviate cashflow issues, or at the very least give you more monthly cashflow to live or do the things you would like to do. Debt Consolidation brings to mind a course of action that will give peace from the stresses of bad credit, mortgage arrears or Home Loan defaults, or even Credit Defaults. This is quite often not the case. Loan Saver Network has been working in the Non Conforming Arena for 3 years and helped many people with Debt Consolidation , and have come across many mis-guided beliefs. The end result for these clients is that they are put into either a situation they cannot get out of without a credit default being listed, or they are left paying quite a large monthly payment because they don’t qualify for traditional loans.

There are many things to consider when consolidating your debts:

• Lender Policies - Each lender has a policy around Debt Consolidation. Choose the wrong
  lender and you could be declined.
• Previous Conduct - Most lenders don’t like to refinance loans that are currently in arrears.
  Some lenders are set up to handle bad credit but still have policies they must adhere to.
• Equity - Each lender will allow a certain amount to be borrowed against your property. This is
  represented as LVR Ratio (Loan to Property Value Ratio)
• Income - Does your situation require Low doc or can you verify your income?

If you are unable use Debt Consolidation there may be another course of action, speak to us before you take any steps. See other solutions below. There are many avenues to sort out a financial mess.

• Debt Negotiation
• Debt Agreement (with Lender)
• Part 9 Debt Agreement
• Part 10 Insolvency
• Bankruptcy
• Debt Consolidation
• Personal Loan
• Gifted Moniies (From Family/Friends)
• Loan Redraw
• Refinance

There are other avenues, but these are the main ones to consider. Quite often Debt Consolidation will over lap into these other areas. In all circumstances there are many things to look at the identify an appropriatte course of action to alleviatte the stress of Loans that are in default. I would like to highlight the word “appropriatte” in the previous sentence. At times bankruptcy is an appropriatte course of action, at times a Part 9 Debt Agreement is an appropriatte courtse of action. At times Debt Consolidation will not alleviatte the credit or repayment issues. I have spoken to many clients on Debt Agreements where a Part 9 debt agreement has been their saviour, and others where they were recommended to declare an inappropriatte bankruptcy. It is a committment of Loan Saver Network that our client’s achieve an appropriatte solution to their issues, which could include Debt Consolidation , Part 9 Debt Agreement, Part 10 Insolvency, Bankruptcy or a simple refinance.

For Information on any of these topics, or for a Free assessment of your situation Contact Us or Apply for a Loan

How to Get a Bad Credit Mortgage

Many people who have bad credit feel as though trying to get a mortgage would be impossible. The idea follows the norm of society; people who have bad credit simply do not get new loans, like mortgages. What people do not realise, however, is that there are companies out there who specialise in offering bad credit mortgages to people who want to be able to own their own home, but don’t know what to do. People with bad credit come to these companies and manage to get mortgages; while the interest rate may be higher, people who can afford the payments can get a mortgage just as others do. Once you have a mortgage, refinancing is possible down the track that could provide improved interest rates. Many people feel that the process of obtaining a bad credit mortgage can be difficult and complicated, but If you follow simple steps, obtaining a mortgage can be easier than you realise.

Know What You Can Afford

Obtaining a bad credit mortgage is achievable, but you should check some details to ensure you end up with the right loan. One way that you can seriously help yourself obtain a bad credit mortgage is to know exactly what you can afford, and what is realistic. Trying to get a huge mortgage may not be realistic for people who have bad credit. By knowing exactly what you can afford, you can make sure that you are not putting yourself from the frying pan into the fire.

Know Your Credit

One incredibly important step in trying to get a bad credit mortgage is understanding exactly where your credit stands. By knowing where your credit rating stands, you can source the appropriatte lenders who provide bad credit mortgages for your circumstance. Some companies work with very bad credit, where others deal with slightly bad credit. Understanding your level of credit impairement will lead you to the correct company and Mortgage.

Your House and Other Fees

Once you understand your situation and what you can afford you are in a position to start looking for a house. If you have found a specific house that you want a mortgage for, the purchase price will determine other Government fees and Stamp duty, as well as lenders costs you need to pay (use a mortgage calculator otherwise a mortgage broker will tell you). Each state has different Government fees when buying a house.

Find Companies that Offer Bad Credit Mortgages

After you have figured out your credit, how much you can afford, and how much money you need, there is still some job ahead of you. The final piece of the puzzle is to search the companies that offer bad credit mortgages. The best way to approach this is through a Mortgage Broker who specialises in Bad Credit Mortgages. You may research lenders and products yourself, but it will take more time and quite often when buying a house there is not a lot of time to do this.

It is important to search out the right companies that can help you in your quest for a mortgage, because applying for multiple loans can hinder your chances of obtaining a bad credit mortgage, as each enquiry gets listed on your credit file. A specialist mortgage broker will assist with obtaining a successful application ideally the first time.

Once you have been able to find the Mortgage Broking Company that will offer you a bad credit mortgage, you are on your way to securing a mortgage. Some people do not realise that even people with bad credit can own their own home. While getting a bad credit mortgage can be more difficult than a traditional mortgage, it is still possible.