The results of a recent broker poll have revealed that borrowers with adverse credit are likely to face a difficult year in 2020. This is due to the fact that lenders are becoming increasingly cautious when it comes to approving loans for those with a poor credit history.
Adverse credit is a term used to describe a borrower’s credit history that is considered to be less than ideal. This can include missed payments, defaults, CCJs, or bankruptcy. As such, lenders view these borrowers as higher risk and are less likely to approve them for a loan.
The broker poll revealed that lenders are becoming increasingly cautious when it comes to approving loans for those with adverse credit. This is due to the fact that lenders are concerned about the potential for increased defaults and losses in the current economic climate.
The poll also revealed that lenders are increasingly focusing on the borrower’s current financial situation rather than their past credit history. This means that even if a borrower has had adverse credit in the past, they may still be approved for a loan if they can demonstrate that they are now in a better financial position.
However, borrowers with adverse credit should be aware that they may still face higher interest rates and stricter repayment terms than those with a good credit history. This is because lenders view these borrowers as higher risk and therefore need to protect themselves against potential losses.
Overall, the results of the broker poll indicate that borrowers with adverse credit are likely to face a difficult year in 2020. Lenders are becoming increasingly cautious when it comes to approving loans for those with a poor credit history and are likely to focus on the borrower’s current financial situation. As such, borrowers with adverse credit should be aware that they may still face higher interest rates and stricter repayment terms than those with a good credit history.