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Credit Rating Issues – Adverse Credit

Adverse credit essentially is a description of harmful impacts on a credit report.

These can be in the form of payment arrears & defaults. Having these on your file can mean you fail to meet some lender’s requirements.

Understanding Adverse Credit

Adverse credit can be split into 6 categories.

  • Secured debt arrears – This covers mortgages or other secured loans whose monthly repayments are not being met.
  • Unsecured debt arrears – This covers bank loans, credit cards or hire purchase arrangements that aren’t being met each month.
  • CCJ (County Court Judgement) – is a judgement that a county court issues when someone has failed to pay money they owe. CCJs are a simple way for creditors to claim the money they are entitled to. Whether its an individual, company or organisation.
  • Defaults – When a lender stops a loan as it is in arrears and demands a full settlement. Customers are taken to court if no settlement is forthcoming.
  • IVA (Individual Voluntary Arrangement) – When an individual is struggling with unsecured debt.  An insolvency agency  will work out how to reduce the debt and how much an individual can afford to repay each month, so that debts are repaid in part. At the end of the term, any unpaid debt is written off. This is different to bankruptcy which puts a persons home at risk.
  • Any adverse credit connected to a corporate body. For example, an individual who has been a Director/partner in a company that has gone into liquidation.

Can Adverse Credit affect me getting a Buy-to-Let Mortgage

Subsection to be added


You can check your credit file online, it’s simple and easy to do so.

Check My File offer a FREE 30-day trial, which is then £14.99 a month once the trial ends, however, you can cancel online anytime.

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Advantages of Credit Ratings

  • Having a good score can mean you are offered better interest rates.
  • Proves to lenders that you are a good candidate to offer to.

Disadvantages of Credit Ratings

  • Potential higher interest rates.
  • Can be damaging in the long run.
  • Can affect you in obtaining any borrowing.

How can YOU benefit from our advice?

  • If speed is essential to the transaction, our advisers will prioritise your case to ensure deadlines are met.
  • If you are unsure on whether you can obtain finance due to your situation, our Advisers can assist.
  • We offer a FREE assessment and have a no upfront fee policy. Our typical fee for 99% of our clients is capped at £395
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