Most people will usually face at least one challenging life situation in their lifetime, whether it be redundancy, health worries or divorce. You may have clients who have encountered such life events which have affected their ability to honour their financial obligations, resulting in a poor credit file. In 2020, all of us have encountered a challenging life situation! Even if our job has not been affected, we all know somebody's who has. So, I think it is safe to say we can all empathise and understand how a client’s financial stability can wobble and result in them having the stigma of an ‘adverse credit file’ against their name.
The secured loan industry is well versed in understanding clients’ situations. For those with challenging personal circumstances, you, as the broker will have undertaken a lot of work before determining that a second charge is the best option. Along with a lengthy fact find and other investigations, as the lender, Equifinance would also do a ‘deep dive’ into their circumstances to see why the adverse credit position occurred and what measures have been put in place to prevent it occurring again.
Clients with a genuine explanation for adverse credit and with the ability to put measures in place to stop it occurring again can benefit from ‘credit repair’ options, such as consolidation loans. However, as well as consolidation, having historic adverse does not mean they are unable to borrow money for other purposes. Explanations are key, along with a willingness to repay past debts and their current employment, expenditure, and income situation.
There are specialist lender plans and criteria devised for clients who may have experienced financial difficulty and there are sensible and responsible plans out there for clients who are looking to repair their credit file and move on with their life. So, clients can put their past behind them and look to the future. With the help of a trusted adviser, there are many options out there.
Equifinance is always on hand to help guide brokers who are looking to help their clients repair their credit. You can contact one of our BDMs at any time;
Laura (Midlands and North)
07522 359 084
Richard Croll (Wales and South)
07543 221 419