There are various terms used to describe bad credit or a poor credit rating. The following is a list of some of the more common terms used when dealing discussing credit ratings.

Adverse Credit

Someone with a history of poor credit usage is described as a having Adverse Credit, Poor Credit History or simply Bad Credit. Adverse Credit can arise from late Mortgage payments, a County Court Judgment(CCJ), Bankruptcy, or any late payments on credit cards or other credit agreements.

Arrears

The amount, either in pounds or time, that the borrower is behind with Mortgage repayments.

Bankrupt

An individual who. via court proceedings, is relieved of paying all debts once assets have been surrendered to an appointed third party designated by the court.

County Court Judgment (CCJ)

A ruling against a person by a County Court, who has failed to satisfy their debts with their creditors. A County Court Judgment(CCJ) will be recorded on a persons credit history for a period of seven years.

Default

The failure of an individual to meet payments on any credit at the correct time or failure to comply with requirements laid down by the mortgage company.