The short answer
You probably have bad credit if your report shows missed or late payments, defaults, county court judgments or a lot of recent applications. The only way to know for sure is to read your own report, ideally from all three agencies. Errors can be corrected and most problems fade with time and good habits, but nobody can honestly promise to remove accurate information.
How do I know if I have bad credit?
There is no single credit score. Experian, Equifax and TransUnion each use their own scale, and lenders then apply their own scoring on top. So a 'good' number on one app does not guarantee a lender will agree.
What lenders actually look at is what is on your file. These are the common signs of a weak credit history:
- Late or missed payments on loans, cards, phone contracts or bills
- Defaults, where a lender has closed an account because payments stopped
- County court judgments (CCJs) or an arrangement to pay debts
- Lots of credit applications in a short space of time
- Being refused credit, or having little or no credit history at all
- Wrong addresses, or not being on the electoral roll where you live
Check all three agencies, not just one
Lenders do not all use the same agency, so a report from only one can miss something a lender will see. Looking at your own report is a soft search, which does not lower your score and cannot be seen by lenders. We explain how to get a report covering all three agencies, and how to send it to us, in our credit report guide.
Can I fix my credit report?
It depends what is wrong. If something on your report is incorrect, such as an account that is not yours, a payment marked late that was on time or an old address, you can ask the agency and the lender to correct it. That is worth doing early, because it can take a few weeks.
What you cannot do is have accurate information removed because you would like it gone. Late payments and defaults normally stay on your file for six years. A CCJ also stays for six years, although one that is paid in full within a month is removed. If there is a good reason behind something on your file, you can add a short note of explanation to it, called a notice of correction.
Credit repair companies: are they worth paying for?
Be careful. Most of what a credit repair company does, such as getting your reports and challenging errors, you can do yourself for free. No company can legitimately promise to remove accurate negative information, and anyone who says they can should be treated with caution. If a company offers to deal with your creditors on your behalf, check that it is authorised on the Financial Conduct Authority register. If you are struggling with debt, free help is available from MoneyHelper and StepChange.
Practical help with credit before you apply for a mortgage
There is no overnight fix, but these steps usually help, and the earlier you start the better:
- Register on the electoral roll at your current address
- Pay everything on time, using direct debits where you can
- Avoid new credit applications in the months before you apply
- Keep credit card balances well below your limits
- Check your addresses and any financial associations, such as a joint account with someone you no longer share finances with
- Read all three of your reports so there are no surprises when a lender looks
Can I still get a mortgage with bad credit?
Often, yes. Some lenders will consider applicants with past credit problems, and what matters most is what happened, how long ago it was and how it has been dealt with since. You may need a bigger deposit or have fewer lenders to choose from, and some people are better off waiting and improving their position first. We will give you an honest view once we have seen your report, but no outcome can be guaranteed.
How we can help
If you are arranging a mortgage with us, we go through your credit report as part of the service at no extra cost. If you just want a standalone check, we also offer a credit report review for 25 pounds, or a review with a call and written plan for 50 pounds. These are not mortgage advice or debt advice, and they carry no guarantee of any outcome.
Common questions
Read your credit report. Late or missed payments, defaults, county court judgments, lots of recent applications and being refused credit are the usual signs. Because lenders use different agencies, it helps to check Experian, Equifax and TransUnion.
Often, yes, although it depends on what is on your file, how long ago it happened and the lender. You may have fewer lenders to choose from or need a larger deposit. No outcome can be guaranteed.
Late payments and defaults normally stay on your credit file for six years. A county court judgment also stays for six years, unless it is paid in full within a month, in which case it is removed.
No. Looking at your own report is a soft search. It does not lower your score and lenders cannot see it.
You can have errors corrected by contacting the agency and the lender. You cannot have accurate information removed, but it normally drops off after six years and you can add a short note of explanation.
There is no single score. Each agency uses its own scale, and each lender applies its own rules. What counts is the history on your file, not one number.
There is no quick fix. Registering on the electoral roll, paying on time, avoiding new applications and keeping card balances low all help over time.
Want this applied to your own situation?
Tell us what you are planning and we will look at it with you. There is no obligation for the first conversation.
This article is for general information only and is not personal advice. Mortgage products and criteria change often, and what suits one borrower may not suit another. MakeMyMortgage Ltd is an appointed representative of PRIMIS Mortgage Network. We typically charge a fee of £349 payable on application, which can vary with the complexity of your needs. Your home may be repossessed if you do not keep up repayments on your mortgage.