24 Hour Loans glossary of financial terms

Adverse Credit

Adverse credit is a term that is applied to consumers/businesses that have or that have had financial problems. Virtually every individual in the UK has a credit history behind them. If you have a mortgage, for example, then the way that you manage your payments will be reflected on your credit rating. If you make all of your payments on time and in full then your credit rating here will be good. If you have missed payments or have built up arrears then your credit rating will show this. If another lender or financial institution checks you out for credit in this case then you may be seen as being an adverse credit risk.

There are various issues that can be flagged up as adverse credit. These include missed payments, late payments, arrears, County Court Judgements and bankruptcy. If you do have an adverse credit history then you may find it hard to raise further finance in the future or you may be expected to pay higher rates to secure it.