What is Bad Credit?
When people think about their credit, whether it be their credit history, their credit payment profile, their credit rating or any bad credit they have incurred over the years its very easy to get confused and lose track of what
went wrong, which payments were missed and what is actually classed as bad credit. We hope to clear things up and help familiarise you with some of the industry terms that you may or may not have heard.
In its simplest form, bad credit means exactly what the name suggest, credit or a credit agreement that is not good (its bad), hence the name bad credit.
There are various other names bad credit can be termed as, all of which relate to exactly the same thing, they are as follows :
- Advers
- Bad
- Poor
- None-Conforming
- Sub Prime
- low credit rating
- low credit score
- Impaired credit
If you add the term lender or broker to the end of any of these terms then its fairly self explanatory which market that broker or lender deal in - having specialist brokers and specialist lenders in the sub prime market is a good thing, as far as the borrower is concerned anyway as it means they will get specialist advice from people who know what they're talking about and they will be borrowing funds from lenders with products designed for clients in their situation.
What does the term 'bad credit' mean when raising finance?
If you have impaired credit then it means that you will normally have to go through a specialist lender or broker. A normal bank or building society will be unlikely to lend as you would represent a higher credit risk, that is, from going off your previous payment profile you are more likely to miss payments than someone with 'good' credit which the majority of high street lenders do not cater for.
The additional risk associated with adverse lenders will be reflected in the interest rates available and whilst they may be higher than a 'standard' loan there are still a great many products available at very competitive rates offered by specialist lenders who are very attuned to the needs of their clients.
Lenders and brokers who deal in the adverse market are normally aware of how and why bad credit comes about. They will already be dealing with a number of clients with situations similar to yours, they are not there to judge you are criticise (we have all had problems at some time in our lives) - what makes people different is how we deal with them. We hope a few of the articles on this site will give you a better understanding of your situation and what you can do to rectify or put right any adverse credit you may have incurred. For further help simple fill in the form opposite and we will call you back.
I want to raise finance with bad credit
That's fine, we could help. Simply look at the options on the top or to the left and click on the one that you think would best suite your needs - after you have read some more information and are happy to take things further simply get in touch - we would be happy to help.
I want help getting my bad credit in order
If you do not want to raise finance but need a helping hand getting you finances in order we could still help. Maybe you don't think you can raise finance or perhaps your not a homeowner, that's fine. We can offer a helping hand for people wanting help applying for debt management plans and Individual Voluntary Arrangements (IVA's)
