Poor Credit History

It is not uncommon for clients to approach us, worried about previous issues with credit arrangements which resulted in defaults or County Court judgements (CCJs). This did used to be a big hurdle to raising capital, but over the past few years, many lenders have started to take a more pragmatic view on the issue of previous poor financial conduct.

Some High Street lenders will discount late payments and, possibly, even a default. Once you’ve told us exactly what issues you’ve had, we can start to direct you to the appropriate lender.

If a client has a more chequered financial history, perhaps including multiple CCJs or even bankruptcy, this is likely to preclude any mainstream lenders. However, there are many other lenders who will certainly consider offering funds, depending on the circumstances of the past issues. Many of our clients who are in this situation are pleasantly surprised, once we are able to secure funds, with the rates that they are offered. As this market becomes more competitive, lenders are forced to reduce their respective rates and the rates that we secure are sometimes not vastly different from those offered by the High Street lenders.

Poor Credit Score

Whereas, previously, many lenders were concerned solely with a potential borrower’s credit history, we are seeing the increased use of a client’s credit score by underwriters when deciding on whether to lend or not.

We now recommend to all our clients that they gain a copy of their respective credit files and scores, before we decide upon a lender to approach. Scores can be affected by many things, not just the obvious missed payments etc. Presence on the Electoral Roll, updating your address and having access to credit facilities (whether utilised or not) can all make a significant difference to an individual’s score.

The main credit agencies used by lenders are:

Experian
Equifax
TransUnion

You can find application forms on each of the sites above to get your credit file.