You get a credit history when you become financially independent and start applying for things like personal loans and credit cards. Each application is recorded on your credit report. If you meet all your repayments and pay all your bills on time, you’ll have a clean credit history.
But if you default on a payment to a lender or service provider (such as your bank, phone or power company), it gets recorded and, even after it’s repaid, it will remain there for five more years. A default is where you have missed the payment date by 30 days or more, and the service provider has tried to recover the outstanding amount.
Once you have a bad credit history, it can be difficult to successfully apply for a mortgage or any other kind of finance. As part of the approval process, the lender will check your credit report. If they find anything negative, they might decide not to lend you any money. If you’re in this situation, what are your options? You can resolve the defaults and wait for five years until they drop off the report, or you can talk to us today. We can help you find a non-traditional lender who may be willing to lend you money despite your credit issues.
If you have a minor default that can be reasonably explained, we can help you negotiate with a standard bank that may be happy to overlook the issue. Give us a call today to find out how we can help you overcome your bad credit history.