Your credit report plays an important role when you are looking at credit. When you apply for a credit card or a personal loan or even a mortgage, the lender will assess your credit report to make a decision.
Your credit report will be updated frequently. For example, when you make a payment to a loan or a credit card or even getting a new credit will be reported to the credit agencies. Your data in the electoral roll also gets reflected in the credit report. Hence, it is important that you maintain a good credit score.
There are times when you would have missed payments to CreditCard, loans or any credits in the past. This will have a serious impact on your credit report as they would be logged in your credit report.
How long does bad credit last in UK?
Your credit report has the following data in it
– Search data (hard searches and soft searches)
– Account data (credit cards, loans, current account etc.)
– Electoral roll information.
Your credit file also includes the history of payments that you have made for your credit accounts. This includes the on-time payment, loan defaults or missed credit card payments etc.
These information helps the new lenders to assess your credit report and make a decision.
It is important to note that your bad debts will not be in your credit file forever. The data will only remain for certain period of time.
For example, if you had a CCJs (county court judgements) for non-payment of your debts, Bankruptcy, IVA (Individual Voluntary Arrangement), DRO (Debt Relief Order) or late payment , these are expected to last in your credit file for atleast 6 years.