There are many situations that can result in adverse credit and each one affects an individual’s credit file in a different way. In addition to this there are several different classifications of bad credit - commonly referred to as light, medium, and heavy adverse.

Every adult who has had some form of financial product in their name should have a credit file detailing their history for the previous six years. Individuals who have never obtained credit but who have a bank account or utility account in their name are also likely have a credit history. It is therefore likely that almost every adult in the UK has a credit file on which impairments can be displayed.

A credit file may be subjected to adverse credit entries for a number of reasons including falling behind on loan repayments, having credit applications rejected, and even changing address too often. Situations such as these can result in the individual who holds the credit file to be regarded as light or medium adverse. This means that the individual will be restricted to applying for credit products that are tailored to this market.

More severe credit impairments such as County Court Judgments and bankruptcy can result in a credit file becoming severely impaired. This will usually lead to a situation in which the individual who hold the credit file to be regarded as heavy adverse. This will in turn severely restrict the number of financial products the individual can apply for.

If you suffer from adverse credit you may still be able to secure a mortgage for your home. To discuss your situation Click Here to contact an independent mortgage broker today.