Bad Credit

If your credit history is classed as adverse then you are in the eyes of a potential lender a consumer with a credit history with lots of defaults.

There are a wide range of terms used in relation with bad credit, including:

• Adverse Credit
• Poor Credit
• Non-status Credit
• Bad Credit
• Impaired Credit
• Sub-prime Credit

All of the above terms basically indicate or mean the same - a negative credit history.

If you are looking to get a new credit of sorts then lenders can find out what type of consumer you are, simply by contacting credit reference agencies and asking them about a consumers credit history.

A credit reference agency is a UK company that supplies credit information from various resources and distributes consumer credit information from individual consumers. Basically they offer information about consumers bill payment and borrowing habits.

This service is there to mainly help the lending company or bank to check the credit worthiness of a potentail consumer or to see if a consumer can actually pay the loan back, it can also affect terms and interest rates for the loan term.

If you are currently looking for a loan and have a bad credit score then it could be harder for you to find a lender that will supply you with a loan.

A consumer nowadays doesnt have it easy knowing if he/she has a credit score that is high enough and will be accepted by a creditor, bank or lender. The problem here is that the individual lenders have their own complex structured scoring system(s).

The main problem consumers face is not knowing what the lender requires, as the lender does not have to reveal what credit score they are optimally looking for, so that a consumer will be accepted. SO as a consumer you dont know if you will pass or fail the lenders requirements.

To find out if you have a bad credit history or if your credit history is not the best, get a credit score report from a credit reference agency and get it checked by a qualified FSA Financial Advisor.

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