What is...

Adverse Credit

Adverse Credit’ describes credit history with harmful entries, such as late payments, arrears, or defaults, which can damage an individual’s Credit Score.

How do I see if I have Adverse Credit?

You can check for any Adverse Credit recorded against you by viewing your Credit Report. You can try checkmyfile free for 30 days, then just £14.99 per month and cancel easily online at any time. Only your Multi Agency Credit Report shows you everything held by Equifax, Experian, TransUnion, and Crediva on a single, easy-to-use platform, ensuring you don’t miss something important.

Those with Adverse Credit will have negative payment information on their Credit Report, such as a default, Arrangement to Pay, an insolvency, or a mortgage repossession. The term can also refer to a series of late payments on a Credit Report.

Adverse Credit will affect your Credit Rating and your ability to take out finance. This information will remain on your Credit Report for six years from the date of account closure, after which it will be automatically removed. The negative impact of Adverse Credit will continue for the full duration that it remains on your Credit Report, but it may become less significant the older it gets (provided the rest of your Credit Report is clear of such negative information).

As lenders view historic repayment behaviour as predictive of future borrowing behaviour, Adverse Credit in the past can make it more expensive and more difficult for you to successfully take out credit.

As such, some lenders specialise in lending to those with Adverse Credit. These lenders usually charge considerably more for credit to cover the additional risk and cost of customers defaulting on payments.

How can I get Adverse Credit removed?

If the adverse information is accurate, you will be unable to get it removed from your Credit Report until it happens automatically – usually after a period of six years.

If the adverse information is factually incorrect, you can dispute it by contacting the lender that is reporting the information. Our Expert Team can provide guidance or raise disputes on behalf of checkmyfile customers.

How will it affect my Credit Report?

Potential lenders will be able to see your payment history when carrying out a credit check and if the impact of your negative payment history is severe enough, they may choose to decline your application.

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