What is Bad Credit History?

You will have a bad credit history if you have failed to keep up with credit agreements in the past. It usually means it will be difficult to get approved for new credit or loans. It may mean you have not paid previous credit payments on time; you may not have paid them at all.

Your credit history is collected by companies called credit reference agencies, such as Equifax or Experian. These are compiled into a credit report. Negative information, such as late payments or loan defaults on your credit report means you have a bad credit record. You may have been referred to a collection agency or had a car repossessed, for example. If there are multiple cases over a short period of time, this will contribute to your credit record. However, some events only need to happen once to make lenders not want to lend to you. This could be things like bankruptcy or repossession of goods.

The information in your credit report is used to calculate your credit score. A low credit score indicates you have a bad credit history.

Can I get a loan with bad credit history?

Looking for a loan under £25000?

At 1st Loan, we introduce to brokers who specialise in loans for people who have a bad credit history, although the terms of the loan will depend on your circumstances. You can apply for a loan from £50 up to a maximum of £25,000. You can apply for a loan today even if you have a bad credit record. Loans are available to people such as self employed or young people aged 18, 19, 20, 21 and over.

How much will a bad credit history loan cost me?

You need to complete the short application form to find out how much a loan will cost you.

Please make sure a personal loan is right for you before taking it out. You should always think very carefully before committing to any form of credit or borrowing money.

Financial Difficulties

If you're trying to manage existing debt or in financial difficulty, consider what your options are before you borrow. For further help on managing your money visit the Money Advice Service.

Further Information

Further information on credit scoring: Wikipedia information on Credit Scoring in the UK
Credit Reference Agencies Experian Equifax