What is bad credit, and how do people know if they have a poor credit rating?
Bad credit can result from various factors, such as late payments, defaults, County Court Judgments (CCJs), or debt arrangements. Many people aren’t aware they have bad credit until they apply for something like a credit card, loan, or, more importantly, a mortgage. By the time they come to us, most already have a property in mind, and what’s on their credit file could stop them from purchasing that home.
There’s also a difference between what clients consider bad credit and what we, as professionals, see as bad credit. For example, a single missed payment isn’t as serious as having a CCJ on your record.
To find out if you have bad credit, the best way is to check your credit reports. It’s important to review these regularly. Many clients use services like ClearScore or Experian, which you can access online. However, the most comprehensive report comes from CheckMyFile, as it pulls data from all three credit agencies: Experian, TransUnion, and Equifax. This is particularly useful when applying for a mortgage, as different lenders check different credit references.
Templar mortgages and protection has an affiliate relationship with CheckMyFile, which offers a 30-day free trial. CheckMyFile gives you access to data from all three credit reference agencies, not just one, and is highly rated on Trustpilot. The trial can be cancelled at any time, and after the free period, the service costs £14.99 per month.
To obtain a copy of your credit file, please click here AD