If you are looking for an adverse credit homeowner loan, whether it is to build onto your home or pay for holiday, there are other options besides the traditional structured lending companies, many of which would have turned you down without looking further than your credit report. Homeowners like you, who are otherwise hardworking and honest, sometimes find that they are late on a payment or two.
Neverheless, that should not stop you from being able to move ahead in life. Some credit problems are due not to your own negligence in making a payment, but because of your lack of making mistakes to begin with. The lack of a credit score is as bad as adverse credit in the eyes of the lenders, simply because they have no point of reference regarding your past credit history.
The credit agency dilemma
Credit agencies, such as Equifax, are in business to report your financial record to anyone who might be in a position to lend you money. Lending companies can often glance at a credit report and tell exactly what you have paid or not paid during the past three months to three years.
Contrary to popular belief, credit reports do not just contain negative information; If you have done well and paid all of your debts on time, your credit report will reflect that. Moreover, the information in credit reports is not always correct. It can contain out-dated and / or incorrect information. By staying vigilant and checking on your credit report once a month, you'll often see things on there that might affect your ability to get a good loan.
What kind of adverse loan can I get?
So, you've found that your credit report is correct and your credit is not very good. You can still apply for an adverse credit homeowner loan. There are two varieties of the adverse credit homeowner loan, the secured and the non-secured.
Each has its advantages. A secured loan, for example, will offer you a lower interest rate. The drawback? You're placing your home up as collateral, which means that if you do not keep your payments current, you'll probably be in a position to lose your home. Of course, the ultimate goal in getting an adverse credit homeowner loan is to pay the loan each month, and in this way improve your credit.
How much can I borrow?
Homeowners have a wide range of amounts to apply for, between £ 3,000 and £ 100,000 depending on the situation you require, and repayment of the loan can span from three years to over thirty, depending on the interest rate and the kind of loan you have chosen.