Traditionally, bad credit and no formal proof of income have been immediate door-closers with most banks and lenders. Unless you fulfill these initial ‘binary’ criteria, the rest of your application is inconsequential.
Much of this remains the same along the High Street, where it is practically impossible to qualify for affordable finance with poor credit. Elsewhere, specialist lenders are increasingly making their products and services available to ‘subprime’ applicants.
Irrespective of how much you need and how quickly you need it, there are options available to suit all requirements – including those of bad-credit customers.
Can You Get a Bridging Loan with Poor Credit?
The short answer is yes – qualifying for bridging finance with poor credit is perfectly possible. However, it is essential to target the right lenders when submitting applications for subprime products of any kind.
Eligibility requirements and affordability checks vary significantly from one lender to the next. Just as some refuse to offer any products or services to subprime applicants, others specialize in cost-effective loans for exactly these kinds of customers.
Can You Get a Bridging Loan with No Proof of Income?
Again, the answer is yes – qualifying for bridging finance with no proof of income is possible. However, you will not qualify for a bridging loan if you are unable to provide your lender with proof of a viable ‘exit strategy’ for the facility.
This means concrete evidence of when and how you intend to repay the loan. Bridging finance is repaid as a single lump-sum payment, typically three to 18 months after the loan is issued. Consequently, you need to convince your lender that you are in a suitably stable position to repay the loan in full, on or before the agreed deadline.
Does a Poor Credit History Make It Harder to Get a Bridging Loan?
Yes, for the simple reason that not all lenders are willing to issue their products to subprime applicants. This is where the support and representation of an experienced broker can prove invaluable.
Your broker will conduct the initial eligibility checks needed to ensure you are a suitable candidate for bridging finance. If so, your broker will negotiate on your behalf to ensure you get an unbeatable deal sourced from a specialist lender who welcomes subprime applicants.
Applying for a bridging loan with poor credit independently is inadvisable, as each declined application could make it even more difficult to qualify next time around.
Is it Possible to Get a Bridging Loan Without a Credit Check?
Unfortunately, credit checks are conducted by the vast majority of bridging finance specialists. As part of the application process, they will need to see what kind of credit score you have – irrespective of how poor it may be.
This is because your credit score is not used exclusively to establish your eligibility for bridging finance. It will also play a role in determining how much you pay in terms of both monthly interest and overall borrowing costs.
Competitive bridging loans for subprime customers are available but are rarely quite as competitive as those issued to customers with a spotless credit history.