For many years, people had little choice when applying for a loan, but to go for a traditional conforming loan, and with stringent requirements, many borrowers simply failed to meet the lender’s requirements.
Non-conforming loans are loans that are offered by non-traditional lenders, such as finance houses, and for many borrowers, a non-conforming loan is a much better alternative for many reasons, which we will examine in this article.
1. Self-Employed Accepted
Generally speaking, the lender who offers a traditional loan will steer clear of borrowers who are self-employed, except in cases where they can show 5 years or more of a stable income. The online finance company, on the other hand, does not feel that the fact that you work for yourself, or run your own small business, should have a negative impact on a loan application. An entrepreneur, for example, might need a loan to expand their business, and rather than waiting for weeks while their bank considers their proposal, they can approach a non-conforming lender and receive an answer in a matter of hours.
2. Greater Chance Of Loan Application Accepted
While traditional banks and lending institutions have rather rigid criteria in place, non-conforming loan lenders will generally be more flexible when appraising loan applications. Banks tend to be stuck in the past and any changes to their loan approval process are difficult to establish, whereas, the modern online finance company takes a more optimistic approach to lending.
3. Bad Credit History
If you have a less than perfect credit score, you are wasting your time approaching traditional lenders, yet a non-conforming lender will take the application on pure merit. Thousands of Australians have managed to get personal and business loans while not having a perfect credit score, as they believe that everyone deserves a second chance. If you have had financial problems in the past and are reluctant to approach your bank for a loan, search online for a leading finance company and you might be pleasantly surprised to learn that you qualify, even with a bad credit score.
4. Debt Consolidation Loans
It would be unthinkable for a bank to lend a person money to pay off existing loans, yet the online finance company can arrange such a loan, which means you can clear all of your outstanding debts, leaving a single, affordable monthly payment. Many people suddenly find themselves in a position where they have several loans outstanding, which might be credit card bills, and with payments due at different times of the month, it can be a real challenge to meet these payments. This is the perfect scenario for a debt consolidation loan, and the online debt specialists are prepared to work with you to find a suitable way to clear your debts without incurring any further interest.
If you are in need of a loan for any reason, search online for a leading Australian finance company that specialises in helping people to apply for non-conforming loans, as this type has helped thousands of Australians secure personal and business loans, even with a bad credit score.
This article is published in partnership with Mediabuzzer.