Credit Problems? No Problems!

Most lenders that we typically approach for our housing loans, personal loans, bank accounts and credit cards are referred to as prime lenders. These include building societies, credit unions and mortgage managers. Prime Lending refers to normal lending practices, which have been adopted by these lenders, their mortgage insurers and legislation. Prime lenders have fairly strict and specific criteria for their borrowers, and many people who don't quite fit into the 'ideal borrower' category (for that specific lender) may discover their loan application has been declined.

We've all heard comments made b banks such as "our mortgage insurers will not approve your loan," "sorry, your business financials don't support the loan you require" or "you can't prove that your deposit was saved over a period greater than 6 months." Borrowers with defaults, judgments or previous bankruptcies may also experience frustrating knock backs when they try to obtain a loan from a prime lender.

These restrictions on borrowers in the prime lending market have opened a whole new market in this country called sub-prime lending. Sub-prime lending is relatively new to Australia and has opened many new possibilities for borrowers who may not be able to obtain traditional bank finance, but are still good credit risks.