UK Credit and Credit Problems

Sometimes we need credit to get what we want but then sometimes we may have problems repaying the credit we have borrowed.

Below is information explaining the different elements of credit, from credit checks to CCJ's and Bankruptcy.

Credit Reference Agencies

Credit Reference Agencies hold information on all residents of the UK, our financial history is stored at what are known as Credit Reference Agencies and before a company will grant you credit, they will check through the information stored on you, in other words they can find out what credit you have borrowed before and whether or not you managed to repay it sucessfully, they can look into all of your credit history before deciding to grant you any future credit. Credit Reference Agencies provide lenders with factual information only and it is the lender who makes the decision to lend to you or not
More information on Credit Reference Agencies

CCJ's

A CCJ or County Court Judgement is an official debt claim brought against you by Creditors, Lenders or Local Authorities to whom you are in debt. The judgement is made through the county court and is usually the result of payment defaults.
More information on CCJ's

Arrears and Defaults

If you fail to keep up monthly repayments on credit then you will get into Arrears. If you are in Arrears for over 3 months then you will be classed as having defaulted on your credit agreement.
More information on Credit Arrears and Defaults

Bankruptcy

Anyone can go bankrupt. You are likely to be made bankrupt if you have many debts that you simply cannot afford to repay now or in the future.
More information on Bankruptcy

IVA's

An IVA is arranged to help you pay off your debts in a way that is affordable to you. An IVA states the amount to be paid monthly and usually lasts for a period of 60 months.
More information on IVA's

Credit Rating and Credit Scores

In order to be approved for a loan firstly you will have your credit rating checked, this means that your credit history will be examined. Companies determine your credit rating score using a points system. The better your credit history the higher your score. A low score usually results after having been in arrears with payments or having CCJ's or IVA's.
More information on Credit Rating and Credit Scores