Advisers Can Help Clients Move Beyond Bad Credit

By Vicki Picton, Director and Mortgage & Protection Adviser at Veritas Financial Group Ltd

Bad credit is more common than many people realise, and it’s often less of a barrier than clients fear. For advisers, the key is to approach these situations with empathy, early engagement and a clear plan. By doing so, we can help clients take control of their financial position and move towards the homeownership they want.

When a client comes to me, I always start with a credit check before doing a full fact-find. It’s surprising how many people have small issues they don’t know about – a missed phone bill after moving house, or an unpaid utility account they never received. What looks like a serious problem can often be a simple blip that’s easily explained. Discovering these things early helps avoid unnecessary panic and gives me the opportunity to talk to lenders about the situation before it becomes an obstacle.

I often reassure clients that one issue on their file doesn’t define their future. Many lenders, particularly the building societies, will look beyond the numbers if you can explain the story behind them. Because we’ve built trust with business development managers, they know the level of care and due diligence we apply to every case. That relationship gives us the space to have sensible conversations and, when necessary, to fight our clients’ corner.

Early engagement also gives us time to help clients prepare. If someone is thinking about buying or remortgaging within the next year, we can review their credit report and guide them on the steps that will make a difference, whether that’s joining the electoral roll, closing inactive accounts, or managing existing debts more effectively. Sometimes clients think they’re improving their position by paying off the wrong debt, not realising how lenders view affordability and credit types. That’s where our advice really matters.

Taking a long-term view is just as important as solving the problem in front of us. A client may need to start with an adverse lender, but that’s not where the story ends. With the right plan in place, we can move them towards a high street mortgage over time. I recently worked with a couple who had been victims of fraud. We spent more than a year untangling their credit record, and although they had to begin with a specialist lender, we already have a route mapped out to transition them to a mainstream mortgage within two years.

These are the moments that remind me why the adviser-client relationship is so valuable. One of my clients sent me a photo of themselves celebrating in their garden with their credit cards cut up on the table – a visual reminder of what good advice can achieve. Supporting clients through difficult financial situations isn’t just about securing a mortgage; it’s about helping them rebuild confidence, regain control and plan for the future.

Bad credit isn’t forever, and advisers are in a unique position to show clients that. With honesty, patience and the right lender relationships, we can turn what feels like a setback into a success story. The best outcomes come when we treat clients as partners on a journey, not as transactions to complete. That’s the real power of advice.