Personal Loans

Secured Loans

Other Loan Types

Residential Mortgages

Buy to Let Mortgages

Other Mortgage Types

Mortgage Payment Protection

Life Insurance

Other Finance

Adverse Credit

Your credit rating is an important factor that is taken into account by lenders when considering you for a loan or mortgage. Having an adverse credit rating, as the name suggests, can have a negative impact when you are seeking finance, however this is not to say that it will prevent you from getting the loan that you need.

There are many things that can affect your credit rating in a negative way, the main ones being missing payments on previous loans, and having a county court judgement against your name.

All of the credit agreements that you have entered into during the last six years are detailed within your credit report. This is a file that is accessible by credit providers and is used by them to determine your credit worthiness. An adverse credit rating is by no means an absolute, the fact is that the credit report makes no assertions at all as to the person’s credit worthiness.

Lenders have their own set of criteria as to what constitutes adverse credit, this is generally based upon the history of credit taken by the person, whether they defaulted on any of loans, how reliable they were at meeting the repayment dates and if the person has moved house a lot, possibly to try and evade debts. This information, which is available from the credit report, combined with other personal details that you supply to the lender, such as employment status and salary, are all used to calculate a credit score.

If you are considered by lenders to have an adverse credit rating, then you may find getting approval for a loan more difficult, and that the rates you receive will not be as low as the typical APR advertised. On the positive side, being accepted for a loan can actually improve your rating, provided that you keep to the repayment schedule and do not default on the loan. Having evidence of successfully repaid credit on your file can do a lot to repair any damage done in the past.