Adverse Credit History explained and how we might be able to help
An adverse credit history needn't be the end of the world when it comes to getting financial help such as a mortgage, remortgage or loan!
Here we offer an explanation as to what an Adverse Credit History is, the problems caused by having one, and how we may be able to help with Mortgage funding or a Homeowner Secured Loan, even in the trickiest of adverse credit circumstances!
Table of Contents:
So, what is an adverse credit history?
Put simply, the term adverse credit history refers to borrowers who have a history of credit transactions that are deemed as unsatisfactory. The term is also sometimes referred to as 'Impaired Credit', 'Sub prime', 'Poor Credit' or 'Bad Credit'.
The simple facts are, many people struggle to cope with the pressures of the world today, and find themselves in financial difficulties, sometimes through no real fault of their own, and end up labelled as having an adverse credit history.
How did I end up with an adverse credit history?
There are many different reasons why somebody may end up with an adverse credit history. Some of the most significant causes are...
- County Court Judgements
- Mortgage or Loan arrears
- Bankruptcy
- Repossession
- Late payments on mortgages and other loans
- Not being present on the Voters Roll for the address you claim to live at
With the aid of financial institutions such as banks and building societies, Credit Referencing Agencies collect and process personal details and information about your financial circumstances, such as your credit card payments, mortgage details, loans and any HP agreements you may have entered into.
Your data then goes through a process known as 'credit scoring' whereby the financial information held about you is assessed, and given a score. The higher your credit score, the better your rating. The agencies then sell this information on to third parties such as banks, insurance companies, employers, government agencies or other commercial outlets that may be looking to provide a product or service that they deem to fit your circumstances. This information is also passed on to any organisation that you apply for credit from, many of which then process the information through their own internal credit scoring systems.
Your credit score is a gauge for measuring the probability of how likely you are to repay any credit that is offered to you. So, essentially to predict your future credit performance, your previous credit history is assessed, and is also compared to the performance of other applicants with similar circumstances.
From your credit score, any potential lenders will be able to assess and calculate the risk level of providing credit facilities.
As previously mentioned, many lenders will apply their own credit scoring systems in addition to those of credit referencing agencies. Lenders have their own policies which vary from lender to lender about what level of credit risk is acceptable, and some are more understanding than others. Some lenders may require that your score reach a certain level to pass their credit scoring systems, whilst if you fail to reach the required level of points, some lenders may decide to offer you a smaller amount than you had originally applied for, or charge you a higher rate of interest. The Lender makes the decision based on the level of risk they envision you may be.
I have an adverse credit history, will I still be able to get a mortgage, loan or remortgage?
Yes, all is not lost!
However, traditional paths to obtaining credit, such as from high street banks and building societies could prove difficult.
Here at Shire Direct though, we specialise in helping those who find themselves to be in a situation where they have an adverse credit history obtain the financial help they need! We have access to specialist lending services in the UK who can help those people who are having problems getting a mortgage, remortgage or loan.
Get in touch to see if we can help you!
Hopefully, that will have explained and answered any initial questions you may have had about adverse credit history problems.
Now, why not see if we can help you? Simply complete our quick online enquiry form, and one of our professionally qualified advisors will get back to you at a time that suits you!
Or telephone us on FREEPHONE 08000 282 281 (lines open 8am until 10pm, seven days), and let us see how we can help you.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.