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Bad credit terms
Terms used when describing the nature of an adverse credit rating. For definitions of any other terms or descriptions that are confusing, please see the comprehensive glossary on this web site.

What is Adverse Credit?
If a borrower has a history of poor credit usage then this is described as Adverse Credit, Sub Prime or just simply Bad Credit. Poor credit history can include County Court Judgements (CCJ's), bankruptcy, mortgage arrears or any late payments on credit cards, credit arrangements etc.

What is meant by Arrears?
This describes the amount the borrower is behind in his mortgage repayments schedule. The amount is usually measured in either pounds or months.

What is Bankruptcy?
A Corporation, Firm or individual who, via a court proceeding, is relieved from paying all debts once assets have been surrendered to an appointed third party designated by the court.

What is a County Court Judgement (CCJ)?
An adverse ruling by a County Court against a person who has not satisfied their debt payments with their creditors. Once the ruling has taken place it will be recorded against the persons credit history and will appear every time a credit search is done for the next seven years.

Will having County Court Judgements (CCJ's) stop me getting a mortgage or loan?
It is generally accepted that if a person has a County Court Judgement against them it will have to be satisfied before they can get a mortgage or loan. This is not strictly true as there are some lenders that specialise in providing mortgages and loans to those with varying degrees of adverse credit, including CCJ's. It is true, however, that such so called "Sub-Prime" lending attracts a higher interest rate.

What is meant by the term Default?
Failure of an individual to make payments on a mortgage at the correct time or to not comply with the mortgage companies requirements.


Remember, each online loan application you make leaves a track on your credit record.

Multiple applications may impair your credit rating, so it really does not make sense to keep applying for a personal loan on different web sites, if you keep being turned down. It could be, that you keep selecting, say, the first loan that is suggested to you as being a 'best buy'. This may be offered by a lender that does not accept any adverse credit business. And yet another lender with a different set of criteria might accept your application. In so doing, of course, such lenders tend to offer their loan with a higher interest rate, to reflect their perception of a higher risk of default.

Everyone's circumstances are different and all lenders are not the same.

If you are experiencing difficulty in obtaining the loan that you need, then at least here on this web site, you can make a quick call to the loan helpline.