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Bad Credit FAQs
What is bad credit?
Bad credit can be a CCJ (county court judgement), a default, arrears, bankruptcy etc. Bad credit can be registered against
you when you do not meet the repayment requirements set out in the agreement between you and your creditor or lender. Normally
if you miss three or more credit card payments, a default will automatically appear on your credit search history.
How can I improve my credit rating?
The only way to improve your credit rating is to get in control of your finances. It may be helpful to have a debt consolidation
loan so that you can refinance to something that is affordable. By maintaining your repayments correctly over a period of time
your credit should improve.
Will I be refused credit because of my bad credit history?
Bad credit in itself will not stop you obtaining a loan through us. Some lenders even lend to people regardless of their credit
rating problems. Some lenders can ignore certain adverse units, for example if you have a default that is less than £250 or if it is over
3 years old, some lenders will not even count it against you.
I am self employed, is this a problem?
No. There are many lenders now who are happy to lend to self employed people whether they have been self employed for a long time and
have certified accounts, or if they have been self employed for just a few months and have no accounts. Some lenders will allow you to
self certify your income. Self certification or self declaration is between you and the lender and this income is taken at face value.
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