If you find yourself in the unfortunate position of having an adverse credit rating perhaps due to getting into financial difficulty and getting a county court judgment (CCJ) registered against you then there are so many things that this could have an impact upon. Let’s have a look at some of these things.
Type Of Current Account
Some of the banks and building societies provide a choice of current account. One of the things that may have a bearing on the type of account you can open may be your credit history. For instance, if you have a good credit rating then you may be able to open a standard current account that could provide a debit card, direct debits and standing orders, the ability to have your wages paid into the account, a cheque book and an overdraft facility. However, if you have a poor credit history then you may only be able to open a basic bank account with one of the banks or building societies that provides a debit card, the ability to have your salary paid in, direct debits and standing orders but no cheque book or overdraft facility.
Ability To Get A Loan
If your credit rating is poor then it may not be as easy to obtain a loan as someone who has a good credit record as there are fewer providers of loans for people with adverse credit histories. If you are able to obtain a bad credit loan then it is quite likely that you may have to pay a higher rate of interest. In some instances, you may also need the support of a guarantor who has a good credit rating.
Obtaining A Credit Card
There are an awful lot of providers of credit cards here in the UK. However, if you have a poor credit record then there are not as many companies that will consider providing a credit card. Depending upon your credit history and other factors, those companies that will consider providing a poor credit credit card are likely to charge a higher rate of interest.
Applying For A Mortgage
Many of the major banks and building societies that provide mortgages tend to look less favourably upon applications for mortgage finance from people who have an adverse credit rating. Those lenders that do may charge a higher rate of interest and also expect a larger contribution to be made by the borrower towards the purchase price of the property.
Fewer Employment Opportunities
If someone has a poor credit rating then they may struggle to find employment within certain occupations such as certain jobs in finance.
Renting A Property
A landlord may require a credit reference search to be carried out on his or her prospective tenant. If this reveals adverse credit information then the landlord could decline to rent a property to such an individual or ask for a larger deposit.
Getting A Mobile Phone On Contract
If you are applying for a mobile phone on a contract basis then the mobile phone company may carry out a credit reference search which, if this reveals something adverse financially, could result in you being declined for a mobile phone on contract meaning that you may have to buy a pay-as-you go phone.
The above are just some of the things that may be affected by someone having a bad credit history.