Credit Default Loan

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Credit Default/Bad credit

Credit default/Bad credit occurs when you get one or more negative listing on your credit file, or you have a low Equifax score. Depending on how many and the type of listing, it could decrease your chances of getting a loan with a typical lender dramatically. Below are some examples of what a Credit default/Bad credit file contains:

  • Unpaid bills - One of the main ways that people will get a Credit default/Bad credit history will be because they have unpaid bills. Make sure you keep your payments up to date and on time and try to pay them back as soon as possible.
  • Late payments - While late repayments will affect your credit history, they will not have as much as an effect as unpaid bills.
  • Previous credit rejections - If you have recently been declined a home loan, credit card or personal loan then you may get a Credit default/Bad credit rating from this. Many lenders see rejections as a negative thing, as it could show you're careless about your credit file.
  • Applying too often - Tying in with the point above, it is a general rule of thumb that you should only make an enquiry for credit once every six months. Any more than this could raise a red flag to lenders, as it could show that you're struggling financially and require credit.
  • Bankruptcy - If you have declared bankrupt then you will have a Credit default/Bad credit rating that will stay on your credit file from five to seven years. Even if you've been discharged, your name stays on a Solvency Index. Lenders can access this Index at anytime.

We looks at bad credit history with sympathy

We acknowledge that a bad credit history may be caused by circumstances that can be resolved. We understand that life throws up difficulties that can lead to loan defaults. However, there is no law that prescribes that a bad credit history should be a lifelong punishment.

Most traditional lenders are very strict about lending to someone who has a bad credit rating, and will reject a loan application without giving it any serious consideration. At Stacks Loan, we believe this is unfair and will work with you and help you achieve financial relief.

At Stacks Loan, we believe this is unfair and will work with you and help you achieve financial relief.

Why is Stacks Loan different?

What is important to us is that you can demonstrate solid credit management now, and into the future. We will perform a responsible suitability assessment, in which we look at each individual case and, where possible, provide a financial solution that suits your needs and objectives. We will work together with you and try to find a solution that suits your needs.

Does Stacks Loan check credit history?

Yes. As part of our assessment and verification process, Stacks Loan will get a credit check from Equifax (Veda) when assessing individuals or businesses who are applying for our loan products. The credit check is a standard part of the process, but we also take into consideration your current financial position and your ability to manage your current financial position before making a decision. We will try every possible way to give you a fair go.

Bad credit loan application process

This is what happens once you submit your application online.

  1. Our system will assess your application details and respond with a pre-qualifying result.
  2. If pre-qualified, our lending team will perform quick verification of your situation and ability to manage repayments based on supporting documents.
  3. A credit check is then conducted before approving the loan.
  4. Stacks Loan will notify you about the result and approval decision generally within an hour, by issuing you the Letter of Offer.
  5. Once the contract is signed and returned, Bank will disburse the loan fund into your nominated bank.