Sunday, April 8, 2012

What to Do if You Have Bad Credit and the Banks Say No

PALM BEACH, FL - FEBRUARY 25:   Ginette Inelus...Image by Getty Images via @daylifeYou're all excited at the prospect of getting your home loan, and the broker submits the loan application on your behalf. You are waiting for the application to be processed, with great anticipation. Finally the phone call comes, and your heart sinks. Rejected!
It happens all the time to many people, however if you have bad credit and you're dealing with banks, you're going to get rejection - if the banks don't run away from you - and it's going to hurt. The really good news though is that there is hope for a mortgage with bad credit - it's just not in the banks.
Before we go any further though, it's essential to determine if you have bad credit.
Do I Have Bad Credit?
If you have bad credit, chances are you'll already be aware of it, however, sometimes there may be a forgotten outstanding bill that presents itself as a default on your credit file. If you have any of the following on your credit file, you are considered to be suffering from bad credit:
oPersonal bankruptcies;
oArrears on mortgages;
oRepossessed houses;
oJudgements; and
You can confirm if you have bad credit by obtaining a copy of your credit file by contacting Baycorp Advantage. Visit for more information. The great news is bad credit is not the end - even if the banks say it is!
The Bank Said No - What do I do?
It can be incredibly disappointing to have a loan application rejected from a bank. After all, your hopes and dreams of owning your own home have been pinned on that one loan approval. If the banks say no, here are our tips as to what you should do next:
oDon't give up: Any sort of rejection can be completely devastating for the person rejected, however if you find yourself in the situation where the bank has rejected your loan application, don't give up! It's okay to be upset - but only for a very, very short time! That's because there are other options out there - plenty as a matter of fact! Just because the banks won't help you doesn't mean another lender won't. The lender that is right for you is still patiently waiting for your loan application, so stop feeling depressed and take action - now!
oFind a Bad Credit Mortgage Expert: Unlike the banks and the majority of mortgage brokers, reputable bad credit mortgage experts will eagerly welcome you into their office and enthusiastically ask, "How can we help you get the right loan for your situation?" They won't run away and they will be able to help you. Help is at hand regardless of whether you are mortgage ready or not. Bad credit mortgage experts worth their salt aren't just committed to your mortgage success - they're committed to your long-term financial success. That means they will work with you to tailor a financial plan to suit your needs, which means you'll walk out of their doors with a loan you can afford and a clear path to financial success. You have to make sure you follow their instructions though - good experts will guarantee you'll succeed if you do!
Where to Get Help
After reading this article, the answer to this question will be blindingly obvious. To secure a loan for your bad credit situation, find a reputable bad credit mortgage expert to work with. These specialists are ready to work with you, so you can obtain the loan that's right for you and walk a clear plan to your financially successful future. Don't be depressed about that bank loan rejection any longer. It's time to do something about it - now!
© Julian Thornton, Designer Mortgage Solutions Pty Ltd, 2006.
Julian Thornton is a Melbourne, Australia-based mortgage and debt analyst specialist. Julian specializes in the field of bad credit mortgages and personal money management coaching. Julian can help literally anybody into their own home and prepare them for financial success. If you need financial relief and desire control of you personal finances then Julian can help you. He is the author of

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