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Bad CreditThe term ‘bad credit’ can cover a wide range of situations for people who have had trouble effectively managing and paying back their debts. This can cover various situations including: Mortgage Arrears – the name of the term explains this quite effectively. It is when people have missed a single mortgage payment, or multiple payments allowing them to build up. CCJ – this acronym stands for County Court Judgement. It is when a creditor is unable to recover monies from a debtor. Because they have been unable to come to an arrangement the creditor then takes the case to a county court where a judge will rule if and how the money should be paid back. Bankruptcy / Discharged bankrupt – bankruptcy is basically a declaration that someone is unable to pay their debts and liabilities exceed assets. The bankruptcy court will then make a ruling on if and how payments will be met. This order lasts several years where the bankrupt person will be unable to obtain credit. A discharged bankrupt is when the number of years has been passed and the person is no longer officially bankrupt. However they may still have problems obtaining credit due to their past history. Because bad credit goes on record, lenders will be able to access this information when deciding on an application. However some such people will still be able to take out a credit card. This is because some credit card companies have special arrangements or products for those with impaired credit history.
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