Glossary - Bad Credit

Bad Credit is a credit scoring term
In the UK bad credit is a term used to describe poor credit history due to low rating or credit scoring. Any credit history that includes loan arrears, county court, judgments or credit debt may lead to a poor rating on the consumer’s financial record.
UK lenders use credit scoring to assess the level of risk they are taking before they agree to any finance.
If bad credit is used when refering to or describing mortgages or loans this means mortgages or loans for people who have poor credit ratings and a bad credit score.

Example: UK Loans Bad Credit
Standard loans are not designed for people with poor credit ratings, specially designed finance products are made available to people with a bad credit history or have no credit status at all. Consumers may find it hard to find a lender willing to give them a loan if they have a poor credit status but there are lenders who deal specifically with borrowers who have such problems, so don't despair, persevere.

Useful Tip
Even with a bad credit rating, credit can still be found. Credit history and suitability are kept on a national database, lenders have access to this database, so no secrets can be kept as far as credit history is concerned. It is up to the lender themselves to make the decision on whether they grant finance to someone or not.
Loan providers who specialise in lending money in these situations can be found online. Poor credit ratings mean more risk to the lender, if repayments have been defaulted on in the past who's going to guarantee they won't be in the future. The greater the risk the higher the interest charged on any finance product, be it a loan or mortgage.

At PeopleFinance.co.uk we can help you find an Online UK Mortgage, Secured Loan or Tenant Loan, an independent financial processor can aim to get you the best deal to match your credit circumstances making it a stress free process for you.

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