Adverse Credit - A term used in credit scoring.
If you have CCJ's (county court judgements), mortgage or loan defaults then you will probably have a poor credit score should you apply for any further finance. If you are unable to make repayments on any loans or finance agreements for any length of time, then you will have a poor credit score. Adverse Credit is used to describe a low rating in credit scoring due to a poor credit history. County court judgements, mortgage defaults, loan arrears or other credit debt repayment problems lay on the consumers financial record for some time. Credit scoring is used by UK lenders to determine the level of credit risk you are before agreeing to fresh finance. Adverse credit when used to describe adverse credit mortgages or adverse credit loans means mortgages or loans for people with a low credit score and thus an adverse credit rating.
Adverse Credit Example - Mortgages
Most high street standard mortgages providers will not lend to people who have an adverse credit rating or poor credit score. There are mortgages that are tailored specifically for people who have an adverse credit history. They are sometimes called Non-status or bad credit mortgages. Having an adverse credit rating will mean greater risk to the mortgage providers. Because the mortgage lender feels they are taking a greater risk in lending to people who have a poor credit history the interest rates are likely to be higher.
Adverse Credit Information
Consumers can find a loan to suit them even if they have an adverse credit rating. There are lenders that will still lend you money all be it at a higher tariff. The internet is a good way of shopping around for the best deal to suit yourself. As with any other sort of loan, you should be aware what the repayments will be and make sure you will be able to make those repayments each month without having to struggle too much.