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Ask an expert: I've got bad credit, can I still get a home loan?

I’ve spoken to so many customers who’ve had black marks on their credit files and issues with their credit history that they weren’t even aware of.

What a lot of people don’t know is that overdue or missed payments on a credit card, home loan or other types of loans can show up as black marks on your credit file. They’re also unaware that such marks could ultimately lead a lender to decline a loan application.

While certain lenders may turn you down outright for having a tarnished credit history, others may offer you a non-conforming home loan as an alternative. Such loans are ideal if you don’t conform to traditional lending criteria, which can occur if you're self-employed or a new Australian resident, or if you have black marks on your credit file. However, such loans do often incur higher interest rates and charges, as you might fall within a risk category inside a particular institution.

Don't let your credit score hold you back from your dream property. Compare home loan rates in seconds.

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At Click Loans, we have options available to customers that are specifically designed to help them meet the lending criteria of major banks and lenders so that they become eligible for regular home loans. These short to medium-term solutions allow customers to consolidate their level of debt, ultimately reducing the total amount of interest payments they’re making each month.

Let me provide you with an example: I recently spoke with Sandra, a mother of 2 from Caringbah in Sydney’s Sutherland Shire. Sandra and her husband were making principal and interest payments on a home loan at 4.5% per annum. At the same time, they were also making repayments on credit cards and personal loans at significantly higher rates, between 13-22%.

The best solution for this couple was to consolidate these additional debts on top of their home loan, therefore reducing the total amount of interest payable. This provided Sandra and her husband with substantial savings and additional cash-flow, and at the same time reduced the risk that black marks would appear on their credit files from default payments.

Ever considered consolidating your credit card, car loan and home loan into one simple payment? Find a rate in seconds.

Debt consolidation can work for many people in similar situations. At Click Loans, our goal is to improve the financial position of our customers, and allow them to live within their financial means without having to rely on numerous credit accounts.

About the author: Sarah Walwyn is a Click Loans Home Loan Specialist. She previously specialised in helping customers in financial hardship. Sarah brings this experience to the Click Team and assists with non-conforming loan solutions.

Looking for more expert advice? Check out these 5 expert steps towards buying a house.

Tags: property, debt consolidation, nonconforming loan, click loans, refinance, new purchase

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Important legal stuff

COMPARISON RATE WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.
Lendi is the trading name of Lendi Pty Ltd, a related body corporate of your licensed credit assistance provider, Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence Number 442372). We will never sell your email address to any third party or send you nasty spam, promise.
EXAMPLE: This example is current as at 20th October 2016. A Click Loans Online Principal and Interest Loan of $150,000 over 25 years has monthly repayments of $767. This is calculated based on the interest rate of 3.69%, comparison rate of 3.69%, upfront fees of $0 and annual fees of $0.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
Lendi is a privately owned and operated Aussie business. Our mission is to provide Aussies with the right experience when choosing a home loan from our panel of major and non-bank lenders including Click Loans which is a wholly owned subsidiary of Auscred Pty Ltd and a related body corporate of Auscred Services, your credit assistance provider. Although Lendi compares over 1600 products from over 30 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 40% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. We have an independent and founder led board.
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