Experiencing financial setbacks happen to a lot of people and for a lot reasons. These can also lead to distasteful events such as bankruptcy and CCJ’s as well as getting behind with bill payments. Although these problems can happen for a short period of time, they can still put you into bad credit record and getting financial assistance might not be easy.
An estimate of 1 of 5 people get turned down for applying a mortgage with a high street lender. While the reasons are generally of minor misunderstanding in nature and can be settled, an estimate of one in eight people is still rejected for a mortgage application and will have to consult a specialist lender.
Reasons behind Your Rejection
There are a number of reasons why an applicant gets rejected for a mortgage application. An applicant can be turned down for the simple reason of not carefully writing correct details on the application. Furthermore, having enough credit points must be obtained since lenders conduct credit check on applicants and not having enough credit points can be a discouragement to them.
Losing or gaining points is up to the applicant. Updating accounts and payments will help you score points. On the other hand, late bill payments, bankruptcy and CCJ’s will invariably lose you credit points.
What to Do If Your Credit Is Turned Down
In case your application is turned down, the first thing to do is find out the reason behind it. Your credit score may not be enough and the lender may be silent about this but you can still sort this out.
Get a copy of your credit history from one these main agencies: Equifax, Call Credit and Experian. Check the details and correct any kind of mistake. Moreover, having not enough credit history can get your application rejected. The best thing to do about this is to use credit cards and pay your purchases with them.
Know the Severity of Your Credit History and Get the Best Deal
There are several options available for applicants turned down with a high street lender. For whatever difficult situation you are in, you have all the chances to get a sub-prime lender. Sub-prime lenders may charge you higher for their services because it will be a risk in their part dealing with applicants who have not- so good credit histories, but chances are, your can get your application approved. Use a broker when applying for a mortgage or a loan program to help you find out the best options for you.
Having worse credit history can get you high interest as well, and it may take two years for you get to mainstream as long as timely payments are made. In case of severe credit records, you will have to wait three years and products that you have to pay for a long period of time must be avoided. In order to put bad credit behind, keep up-to date with your payments so that switching to another lender will be more convenient.