What Does Your Adverse Credit History Tell Lenders About You?
What Is It?
Your adverse credit history is a concise history of all your finances. It details when you took out a financial commitment, like a car loan, a credit card or a mortgage and it gives a brief history of how those debt responsibilities were met. So a green light means you paid up that debt that month, a one means you were late and a two and a three means you missed payments for more than one month. It also reveals if you paid off the debt or whether you still have that financial burden. Your adverse credit history is your financial life in numbers.
Why Is It Important?
It's important because your adverse credit history is what lenders look at to decide whether to lend money to you. It gives them an idea of what type of person you are - whether you meet your debts each month or you have trouble keeping up with repayments. It tells lenders whether you are a saver or a spender and it tells them on what you spend your money. Every lender looks at an adverse credit history differently as every lender has a different borrower target - so some lenders would not like a bad credit history, some would see it as an opportunity.
Where Can I Find It?
Your adverse credit history can be found by going to one of the three UK credit rating agencies - Experian, Equifax and CallCredit. These agencies collect information from every source all over the UK and have every borrower's information. They will allow you to see your own record for a small fee and will also give you lots of advice and services alongside your adverse credit history. There are also other companies that will allow you to see all three scores, giving you different services and different outcomes. But whatever service you choose, you will be able to check your adverse credit history and see what sort of borrower you are.
Who Else Can See It?
Every time you try and get credit - signing a mobile phone contract, taking out some insurance or applying for a mortgage - your adverse credit history is checked. Most lenders use their own systems, powered by some or all of the credit agencies, but they will all give the same result. That's why it's so important that you are aware of your adverse credit history and you always keep it in mind - because in the eyes of financers, your credit score is you.
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