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.
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.
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).
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). 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.
Bankruptcy
Bankruptcy is the most severe form of insolvency. You are discharged after 12 months, but the bankruptcy remains on your credit file for six years. Finance is available for discharged bankrupts — the options improve significantly with time since discharge and the strength of the application.
Most adverse credit markers have the most impact in the first 1–3 years. As time passes and you demonstrate good financial behaviour, more lenders and better rates become available.
What finance is available with adverse credit?
Despite what high-street banks suggest, there is a significant market of specialist lenders who work specifically with adverse credit borrowers. The key products available include:
Bridging loans
Short-term property finance assessed primarily on security and exit strategy. One of the most accessible adverse credit products.
Buy-to-let mortgages
Specialist BTL lenders assess rental income and property value alongside your credit history.
Business loans
Alternative business lenders assess trading performance — not just the director's credit score.
Merchant cash advances
Based entirely on card turnover. Credit score is largely irrelevant.
How we help
Adverse Credit Brokers is a credit introducer. 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.