Summary

This article discusses exactly what the term 'adverse credit history' means to people currently looking for credit.

Adverse Credit history - what does that mean to you? Page 2

Author: Anna Richardson

The short answer to what an adverse credit history means to you, is that you might not be able to get credit. It's the lenders decision at the end of the day, not the credit (Car insurance) reference agencies that supply and collate the information. The lenders all have their own criteria as to what is and isn't acceptable, and if your credit score doesn't reach the pass level, you will either be refused, be offered a lesser amount than you requested, or be offered credit on the understanding that you must agree to a higher rate of interest. Some lenders will refuse you point blank, others will offer alternatives as above - every lender is different.

Here is a list of the factors that will, either alone or in conjunction with others, make it hard for you get to credit: loan, credit card or mortgage arrears, late payments on the above, ( cheap life insurance ) County Court or High Court Judgements still unpaid, no entry on the electoral register at your given address, and multiple applications for loans and credit cards. There are two factors that will result in a definite refusal for a credit application: recent bankruptcy and having your home repossessed.

If you have any of the above problems and your application for credit is refused, you can safely assume that the lender has a strict policy relating to adverse credit. { life assurance } The one area that lenders can be more forgiving in is mortgages, especially if you are already a homeowner.

Reading this article should vastly improve your understanding of what the term 'adverse credit history' means, and give you an insight into why you could be turned down by a main line lender. If you are refused credit, your only option may be to request credit from a sub prime ( bad credit loans ) lender. They may accept you, but you will pay a higher price for it.

Just remember, do your very best to always meet your loan, ( insurance ) credit card and mortgage repayments. The consequences of defaulting could have far reaching and expensive consequences, as your credit score could well be adversely affected. The golden rule is - it pays to pay on time.