Adverse Credit is a term used to describe imperfections on an individual’s credit file. Adverse Credit can be caused by missed or late payments, defaults, CCJs (County Court Judgments) and Bankruptcy.
When you miss a payment or fall victim to any of the above, the lender will advise the Credit Bureau (also known as the Credit Reference Agency), who will add this to the credit file they hold on you and it will remain on your credit file for 6 years. The more payments you miss, the more adverse credit records will be added to your credit file.
This will have a big impact when calculating your credit score. The lender will be able to see when you missed payments, as well as the type of credit you missed the payment for. The more adverse credit instances you have, the less likely the lender is to let you borrow money.
While we can’t provide guaranteed car finance, we have helped many customers secure a finance solution with bad or adverse credit.
When you apply for car finance with Creditplus, we undertake what is known as a soft credit search, where we have a glimpse at your credit file rather than carry out a full search. Using a soft credit search means that no trace of the application will be added to your credit profile, and thus your credit score will not be affected. This process is highly beneficial for someone with adverse credit.
It allows us to understand the extent of the adversity on a credit file, so we can advise of any lenders that may be able to help. By matching the customer with lenders that are likely to accept, we protect a customer's credit file from having any unnecessary full credit searches.
If you have had any repayment issues in the past or applied for finance several times in a short space of time, it's possible that you may have adverse credit history on your credit file. If you have applied multiple times for finance and have been rejected, we recommend that you check your credit file before applying for finance again.
For further information to help you understand your credit score, and how you can improve it, visit our Credit Clinic.
This data has been put together with help from the Creditplus Customer Advisors.
If you require further assistance, our team of Customer Advisors are here to help. We're open six days a week - you can view our opening hours here - and we're more than happy to answer your questions.