Back to glossary

Bad Credit

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.

How It Works

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.

Bad Credit Causes

  • Defaults
  • Missed payments
  • CCJs (County Court Judgements)
  • Being in an IVA
  • Being in a debt management programme
  • Bankruptcy
  • 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.

Fixing Bad Credit

Having bad credit can be tough, but it is possible to fix it with a little forward planning and common-sense reasoning. 

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. 

Want To Be Sure?

Our simple, obligation free online process can give you a better idea of your eligibility!