What is adverse credit?
Adverse credit (also called bad credit or a poor credit history) refers to a record of financial difficulty on your credit file — including missed payments, defaults, County Court Judgements (CCJs), Individual Voluntary Arrangements (IVAs), Debt Management Plans (DMPs), or bankruptcy.
Your credit history is recorded by the three main UK credit reference agencies: Experian, Equifax and TransUnion. Lenders use this data to assess the risk of lending to you. Adverse markers make mainstream lenders cautious — but specialist lenders exist specifically for this market. In 2025, 126,240 individual insolvencies were registered in the UK — a 7% increase on 2024 — and 176,273 commercial CCJs were issued. This is a large market of people and businesses who need specialist finance.
Types of adverse credit explained
County Court Judgements (CCJs)
A CCJ is issued by a county court when a creditor takes legal action to recover money you owe and you do not pay or respond. CCJs stay on your credit file for six years from the date of issue. A satisfied CCJ (one that has been paid) is viewed more favourably than an unsatisfied one. If you pay within one month of the judgement, the CCJ can be completely removed from the register — as if it never happened.
Defaults
A default is registered when you have missed multiple payments on a credit agreement and the lender has formally ended the relationship. Defaults remain on your file for six years. Utility and telecoms defaults are generally treated less severely than financial defaults (e.g. mortgage or loan defaults). The age of the default matters significantly — a 4-year-old default carries far less weight than one registered 6 months ago.
IVAs and Debt Management Plans
An Individual Voluntary Arrangement (IVA) is a formal insolvency procedure where you agree to repay a portion of your debts over a fixed period (typically 5–6 years). Approximately 350,000 IVAs are currently active in the UK, with self-employed individuals and sole traders accounting for 20–25% of the IVA population. An IVA is serious adverse credit — but some specialist lenders will consider applications from those in or recently discharged from an IVA, particularly for commercial finance and asset-backed products.
Bankruptcy
Bankruptcy is the most severe form of personal insolvency. You are automatically discharged after 12 months, but the bankruptcy remains on your credit file for six years. Finance is available for discharged bankrupts — options improve significantly with time since discharge and the strength of the application.
Most adverse credit markers have the greatest impact in the first 1–3 years. As time passes and you demonstrate good financial behaviour, more lenders and better rates become available. The trajectory of your finances matters — lenders want to see that the situation has stabilised or improved.
How adverse credit affects different finance products
Bridging loans
Assessed primarily on property security and exit strategy. One of the most adverse-credit-accessible products. Adverse credit is one factor alongside LTV, property type, and exit credibility.
Buy-to-let mortgages
Specialist BTL lenders assess rental income first. Adverse credit results in a pricing uplift and reduced lender choice — but portfolio landlords with adverse credit are regularly funded.
Business loans
Bank statement turnover is the primary criterion. Credit score secondary. Secured options are significantly more accessible than unsecured for adverse credit borrowers.
Merchant cash advances
Based entirely on card turnover — credit score largely irrelevant. Most accessible for adverse credit businesses with consistent card revenue.
Invoice finance
Assessed on debtor quality (the businesses that owe you money). Accessible even during active IVAs with supervisor consent.
Asset finance
Asset is the security — adverse credit has minimal impact. Even significant adverse credit considered with 10–20% deposit.
How we help
Adverse Credit Brokers is a trading style of Archangel Private Finance Limited, a specialist finance introducer for UK businesses and property investors. We work with a panel of specialist lenders across all of the above products. We don't run credit checks and we don't charge upfront fees. We review your situation, identify the most suitable lenders, and make a direct introduction. You deal with the lender directly from that point — with our assistance if needed throughout the process.