Bad Credit is a term used to describe an individual with a history of credit problems which has earned them a bad credit score. If you have bad credit you are considered a high risk to lenders and it can, therefore, be more difficult to get accepted for car finance.
At Creditplus we work with specific lenders who specialise in helping people with bad credit which means there is a good chance we can get you approved for car finance. For more information visit our Bad Credit Car Finance page, or apply with us now and a dedicated advisor will help you.
Your credit history is recorded on your credit file, a document which is updated by Credit Reference Agencies and viewed by lenders when you apply for any type of credit. Your credit score is calculated by Credit Reference Agencies based on the data on your credit file. This includes your repayment history, public record information, whether you are on an electoral roll and additional information relating to your financial history. If you have lots of negative data on your credit file, e.g. missed or late payments, this will result in a low credit score which is referred to as bad credit.
• Missed payments
• CCJs (County Court Judgements)
• Being in an IVA
• Being in a debt management programme
• Being in arrears with your mortgage
If you have one or two late payments on your credit file this does not necessarily mean you have bad credit. However, it will appear on your credit file as Adverse Credit and make a negative impact on your credit score. If you have multiple missed or late payments, your credit score may change to a bad credit rating.
Another factor which can contribute to bad credit is having a high amount of credit searches performed on your file in a short period of time.
Each time you apply to a lender for credit, your file is marked with a search. If you apply to multiple places in a short space of time, it could be seen that you're credit hungry and lenders will be less likely to give you the credit you’re asking for. You should always look for companies who advertise “quotation credit searches” or "soft credit search", as these searches don’t leave footprints on your credit file or result in bad credit history.
Having bad credit can be tough, but it is possible to fix it with a little forward planning and common-sense reasoning. Visit our Credit Clinic to help understand your Credit Rating and find out what you can do to improve and maintain a good credit score.
At Creditplus we only conduct soft credit searches for all our customers upon initial application. Therefore, we will not leave any trace of your application on your credit file, unless you choose to continue with your application and agree to a finance deal with us. All our customer advisors are trained to ensure best practices are enforced and will keep you informed every step of the way regarding the status of your application.
So why not fill out our no-obligation application form and see what we can offer you
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.