"If you're not making mistakes, then you're not doing anything. I'm positive that a doer makes mistakes"
- John Wooden
"The successful man will profit from his mistakes and try again in a different way."
- Dale Carnegie
Another quote we could use would be "Don't cry over spilled milk". If you don't have an unblemished credit file and can admit to having made financial mistakes in the past, then there is not much that can be done to change the situation. We can't get in a time machine and undo what has already been done. There is no point worrying about it excessively now. Waht we can do is work on finding a solution that is going to suit your needs.
Most banks do not look favourably on applicants who have defaults or judgements against them on their credit file. For them, it represents an extra risk and in the current environment where banks are being very picky about who they lend their money to, the first casualties are usually those if us who have little black spots on our credit files. If they are small defaults and were paid very quickly after the default was lited on the file, then most banks will overlook these, but if they are over $500, listed within the last 2 years, or unpaid, then even the most liberal banks are going to be reluctant to lend to such a client.
There are banks that will lend to people with more serious default and judgement listings but typically they will charge a higher interest rate due to the increased risk. They may also charge a risk fee which is a kind of insurance policy if the client doesn't make the necessary repayments.
If you are unsure about your ability to get a loan based on your credit history, don't die wondering. Call Compass Home Loans and we will be able to tell you what your options are and what the financial implications of each option is.