What does adverse credit history mean?

may hear or see the term badverse creditb or badverse credit historyb. What this refers to is someone who may have a poor credit history.

A credit history is formed from your history of credit products, such as loans, mortgages, credit cards, and even your bank current accounts. Even mobile phone contracts can affect your credit history. Each month, lenders report to credit reference agencies whether or not you have made the full payments you needed to make. This is where your credit history is found.

Adverse credit comes from missing repayments or late repayments on loans, credit cards, and mortgages. Youbll also get marks against your credit history for late or missing payments on any credit agreements you have. For example, mobile contract payments and monthly insurance agreements.

When you apply for credit (a loan, a mortgage etc.), the financial lender you have applied to will easily be able to check your past credit history. Credit histories are seen as a row of green ticks and red crosses. Too many red crosses and your financial loan request isnbt likely to be approved.

The main thing to consider when applying for a loan or mortgage is the financial providerbs loan criteria. Some lenders will still accept you with a bad credit history, or an badverse credit historyb, but they usually require significant collateral, and proof that you will be able to afford the repayments requested.