Credit impaired
What is meant by credit impaired?
People who have:
- Defaulted on loans before
- Had judgments against them
- Have been bankrupt (and are now discharged)
In these situations traditional lenders will not normally lend money unless there are some unusually extenuating circumstances.
Are their lenders out there?
There are an increasing number of lenders in this market. Some are more established and credible than others.
Lender responsibility
If you are in need of a loan and fit into these categories, it is important to research the lenders – we can help you with this. Read their websites, look at their material etc. It is important that you can see that they an organisation that is responsible..
Although they have different criteria to traditional lending requirements, they still have an obligation to you under various pieces of legislation (including the Consumer Credit Code). You should know that your chosen ‘non-conforming lender’ knows these obligations and strives to meet them.
The last thing you want when you enter a loan of this type is to be mixed up with an irresponsible lender – this could act to deepen your situation.
What are the strings?
The rates and fees are higher than traditional loans – this is due to the higher perceived risk involved with this style of lending
