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Why the banks refuse you a home loan – and what you can do about it.

Research experts are starting to ask some pretty big questions about the way companies like banks are making their decisions about who to help or how they think people are going to behave1,2. They say the tools being used to make these sorts of assessments every day in big organisations are not always fair and they might actually be wrong. The other concern is that these tools only use numbers and don’t really ‘understand’ the subtleties of information about the people involved, which leads to the answers they get being crude at best and at worst, completely misleading. 

The team at Pepper Money saw that there were a whole lot of people being left behind by the main banks’ lending model and shut out of the very thing that helps make lives secure – getting into their own home. The traditional model uses information like a credit score to judge a person’s ability to service a home loan.  But that one bad score is not the whole story – or the whole person. Financial problems are always just a part of a bigger story. In real life, people have debts, bad credit scores happen and bankruptcy is a reality, for all sorts of reasons often beyond a person’s control. Situations change, people get let down because creditors don’t pay bills, or they get ill unexpectedly, or relationships break up – all of these things can lead to a tough time when things can get off track, especially with money. But most people are also more than capable of getting it right going forward. They just need a chance to get things sorted. That’s why Pepper Money decided to take a real life view of people and their financial situation and to create a whole new way of looking at home loans. Every person gets looked at for his or her individual situation. And every individual situation gets assessed on its merits. If your bank has said ‘no’, talk to Pepper Money. They’ve helped people get into their own homes for over 10 years.

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1. Wang, Tricia (2016). The human insights missing from big data. TEDxCambridge, September 2016.
2. O’Neil, Cathy (2017). The era of blind faith in big data must end. April, Ted2017.

All applications are subject to Pepper Money's normal credit assessment and loan suitability criteria. Terms, conditions, fees and charges apply. Pepper Money Limited, Australian Credit Licence Number 286655, is the servicer of loans made by Pepper Finance Corporation Ltd ACN 094 317 647.