UK Credit and Credit Problems
Sometimes you need credit to get what you want but then sometimes you may have problems repaying the credit.
The below information topics explain the different elements of credit, from credit checks to CCJ's and Bankruptcy.
Credit Reference Agencies
All residents of the UK have financial information and history which is stored at what are
known as Credit Reference Agencies. These agencies provide lenders with
factual information which they require to help them assess our suitability for
credit.
More information on Credit Reference
Agencies
CCJ's
A CCJ or County Court Judgement is
an official debt claim against you by Creditors, Lenders or Local Authorities. The judgement is made
through the county court and is usually the result of payment defaults.
More information on CCJ's
Arrears and Defaults
If you fail to keep up monthly repayments on credit then you will be in
Arrears. If you are in Arrears for over 3 months then you will be classed as having
defaulted on your credit agreement.
More information on Credit Arrears and
Defaults
Bankruptcy
Anyone can go bankrupt. You are likely to be declared bankrupt if you have many debts
that you simply cannot afford to repay.
More information on Bankruptcy
IVA's
An IVA is not the same as a Debt Management Programme which is less
informal. An IVA is arranged to help you pay off your debts in a way that is
affordable to you. An IVA states the amount to be paid monthly and usually lasts for a period
of 60 months.
More information on
IVA's
Credit Rating and Credit Scores
You have to be approved for a loan. In order to be approved you will have your credit rating checked, which means your credit history will be examined. You will then be
given a credit rating using a credit score system.
More information on Credit Rating and
Credit Scores
