What Does Adverse Credit Mean?

Adverse credit means negative marks on your credit history that make lenders see you as higher risk. This includes CCJs, defaults, IVAs, bankruptcy, missed payments, and debt management plans. These typically stay on your credit file for 6 years. While it makes borrowing harder, specialist mortgage lenders can still help if you have adverse credit.

Learn more about bad credit mortgages in our detailed guide.

Learn more about iva mortgage options in our detailed guide.

What does adverse credit mean?

Adverse credit means you have negative marks on your credit history that make lenders see you as higher risk. This includes CCJs (County Court Judgements), defaults, IVAs, bankruptcy, missed payments, debt management plans, and high levels of unsecured debt. These stay on your credit file for 6 years.

What is the difference between bad credit and adverse credit?

They're essentially the same thing - adverse credit is the industry term used by lenders and brokers, while bad credit is the common everyday term. Both refer to negative credit history that affects your ability to borrow. Some people also use 'poor credit' or 'impaired credit'.

Can I get a mortgage with adverse credit?

Yes, many specialist lenders offer mortgages to people with adverse credit. Your options depend on what type of adverse credit you have, how recent it is, and how much deposit you have. Generally, the older the issue and the larger your deposit, the better rates you'll get.

How long does adverse credit stay on your file?

Most adverse credit stays on your file for 6 years from the date it was registered. This includes CCJs, defaults, IVAs (from completion date), and bankruptcy (from discharge date). After 6 years, items are automatically removed, though you may need to wait longer for the best mortgage rates.

What counts as adverse credit for a mortgage?

For mortgage purposes, adverse credit includes: CCJs (any amount), defaults (usually £500+), IVAs and bankruptcy, debt management plans, missed mortgage/loan payments, high credit utilisation, payday loans (even if repaid), and multiple credit applications in short periods.

Does adverse credit affect how much I can borrow?

Yes, adverse credit typically means smaller loan amounts and higher interest rates. Specialist lenders may offer 4x income rather than 4.5x, and require larger deposits (15-25% minimum). However, as your credit improves or issues age, your borrowing power increases.

Quick Answer

What is Adverse Credit?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Adverse credit is negative information on your credit file - CCJs, defaults, IVAs, bankruptcy, or missed payments - that makes lenders see you as higher risk.

Adverse credit (also called bad credit or impaired credit) refers to any negative information on your credit history that indicates you've struggled to repay debts in the past. This includes formal issues like CCJs (County Court Judgements), defaults, IVAs (Individual Voluntary Arrangements), and bankruptcy, as well as less formal issues like missed payments, high credit utilisation, and debt management plans. These markers stay on your credit file for 6 years and make mainstream lenders cautious about lending to you. However, the UK has a thriving specialist lending market specifically for people with adverse credit, offering mortgages with adjusted terms and rates.

Having adverse credit doesn't mean you can't get a mortgage - it means you need specialist advice to find the right lender.

Key Points

1CCJs, defaults, IVAs, bankruptcy all count as adverse credit
2Missed payments and debt management plans also qualify
3Typically stays on credit file for 6 years
4Specialist lenders offer mortgages for adverse credit
5Larger deposits improve your options significantly
6Recent issues are treated more seriously than older ones

Eligibility Criteria

Adverse credit can be 'spent' after 6 years
Some lenders consider issues over 3 years old differently
Amount of the CCJ/default matters (£500+ threshold common)
Whether issues are satisfied (paid) affects options
Pattern of behaviour matters more than single incidents

Typical Timeframe

Adverse credit markers remain on your file for 6 years from registration (or completion/discharge for IVAs and bankruptcy). Your mortgage options typically improve significantly after 3 years and again after 6 years when items drop off.

Next Steps

1Check your credit report (Experian, Equifax, TransUnion)
2Understand what adverse credit you have
3Calculate how long until issues are 'spent'
4Speak to a specialist adverse credit broker
5Consider what deposit you can raise

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Related Questions

Bad credit mortgages

CCJ mortgages explained

Mortgage with defaults

IVA mortgage options

For more detailed information about this topic, visit our comprehensive guide:

Adverse Credit Hub

Jay Sabine

CeMAP Qualified

29 Years Experience

Content reviewed: 13 January 2026

Types of Adverse Credit

Type	Impact	Time on File	Description
CCJ (County Court Judgement)	High	6 years	Court order for unpaid debt
Default	High	6 years	Formal notice of missed payments
IVA	Very High	6 years from completion	Individual Voluntary Arrangement
Bankruptcy	Very High	6 years from discharge	Formal insolvency
Missed Payments	Medium	6 years	Late or missed debt payments
Debt Management Plan	Medium	6 years	Informal debt arrangement
Payday Loans	Low-Medium	6 years	High-cost short-term lending

How Lenders View Adverse Credit

Age of Issue

Older issues are viewed more favourably. A CCJ from 5 years ago is less concerning than one from 6 months ago. Many lenders have different criteria for issues over 3 years old.

Size and Number

Multiple small defaults may be viewed worse than one large one. The total value matters - many lenders have thresholds like "CCJs under £500 in last 3 years" for better rates.

Satisfied Status

Satisfied (paid) CCJs and defaults are viewed better than unsatisfied ones. Paying off old debts, even if they're on your file, improves your options with most lenders.