An Adverse Credit History Doesn't Mean You Can't Get A Loan

What is an adverse credit history? A loan applicant is labeled with an adverse credit history when they have been delinquent on any debt for 90 days or more, been the subject of a default credit determination, had a bankruptcy discharge, been involved in a real estate foreclosure, had an adverse property settlement, or had a tax lien or wage garnishment placed upon their earnings. Having an adverse credit history doesn't necessarily mean you can't gain credit.

Loans are available for those with an adverse credit history subject to their current employment status and ability to pay back the credit extended to them. In some instances, someone with an adverse credit history can obtain a loan for a new or used car, for a dream holiday, to pay off existing credit, or for home improvements just to name a few uses. Most of the time, loans offered to those with adverse credit histories carry higher interest rates than those with a good credit history. Also, credit issuers are much more strict on those with adverse credit histories.

An adverse credit history will stay on your credit report for seven years. Having a bankruptcy discharge can be an adverse element on your credit report for ten years. If you are asking for a mortgage over $50,000, sometimes the adverse information on your credit report may stay a longer length of time. But if you try to recover from the circumstances that forced you to have an adverse credit report, credit lenders will take that into consideration. Having an adverse credit history isn't a death sentence.