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Saturday, May 6, 2017

Adverse credit I part

Adverse credit history can come under a number of different headings. It can also be known as a poor credit history, non-statuscredit history or impaired credit history. 
These terms are all used by credit companies when judging one's credit history.
When you apply for a loan, lenders, banks and credit cardcompanies will look at your credit history in order to judge your financial credit standing. 
They gain this information from credit agencies. Credit agencies track your history of repaying credit and loans. They have on file your financial transactions when repaying loans or credit. They are able to use this information to tell whether you have an adverse credit history or not.
Many people have found that the information on a credit agency report is incorrect. There are debts that are sometimes not removed from the report many months and years after they have been paid off. These will still give you an adverse credit history rating, and it is in your best interest to have them removed.
Financial institutions such as banks and credit card companies purchase this information from the credit agencies. They therefore have at their disposal information to ascertain whether you are a good enough risk to give credit to. This information can be used in corporate dealings and personal finance.
If you are shown to have an adverse credit history, the lender may simply refuse you credit. They may, on the other hand, offer you a lower amount of credit than requested. Due to your adverse credit history, they may also offer you credit at a much higher rate of interest than would normally be offered.
There are many ways to change your adverse credit history and credit score. Obtaining help from a debt counseling service, or debt consolidation service if you are in debt, can eventually return your credit score to normal. It may take many months or years to do this, but it is more financially viable in the long run.
You should also be aware that an adverse credit history might not always be your fault. 
A credit agency may still show you as having an adverse credit history even if you have paid off your debts. You should obtain a copy of your credit information file to verify your standing.

tags:adverse credit,adverse credit history ,banks and credit card

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