Frequently asked Questions About terms used to describe bad, adverse or impaired credit - for definitions of any other terms or descriptions that are confusing, please see the comprehensive glossary on this web site.

However, we fully realise that everybody's circumstances are different and that you may have a question that is not listed. This is why, unlike many online organisations, we actively encourage you to pick up the phone and call a qualified adviser. They are there to help you reach the right decision and will try hard to answer your every query. The service that they provide is both impartial and free to you and carries no obligation on your behalf. Just call us for a personal one-to-one consultation. Calls are charged at normal tariffs.

What is Adverse Credit?

If a borrower has a history of poor credit usage then this is described as Adverse Credit, Sub Prime or just simply, Bad Credit. Poor Credit history can include County Court Judgements (CCJs), Bankruptcy, Mortgage arrears or any late payments on credit cards, credit arrangements etc.


What is meant by Arrears?

This describes the amount the borrower is behind in his mortgage repayments schedule. The amount is usually measured in either pounds or months.

What is a Bankrupt?

A Corporation, Firm or individual who, via a court proceeding, is relieved from paying all debts once assets have been surrendered to an appointed third party designated by the court.

What is a County Court Judgement (CCJ)?

An adverse ruling by a County Court against a person who has not satisfied their debt payments with their creditors. Once the ruling has taken place it will be recorded against the persons credit history and will appear every time a credit search is done for the next seven years.

Will having County Court Judgements (CCJs) stop me getting a Mortgage or Loan

It is generally accepted, that if a person has a County Court Judgement against them it will have to be satisfied before they can get a mortgage or loan. This is not strictly true, as there are some lenders that specialise in providing mortgages and loans to those with varying degrees of adverse credit, including CCJs. It is true, however, that such so called "Sub-Prime" lending, attracts a higher interest rate.

What is meant by the term Default?

Failure of an individual to make payments on a mortgage at the correct time or to not comply with the mortgage companies requirements.

Does it matter how many times I apply for a loan?

Each loan application you make, leaves a track on your credit record. Multiple applications may impair your credit rating. It is important that you speak to a mortgage or loan adviser if you have been turned down for a mortgage or loan.