Process
Adverse Credit
Adverse credit covers any negative entries on your credit file — missed payments, defaults, CCJs, IVAs, or bankruptcy — that affect a lender's view of your reliability.
Adverse credit doesn't mean you can't get a secured loan. It means you're routed to specialist lenders rather than mainstream products, and your rate will be higher than someone with clean credit.
The market segments adverse credit into bands. 'Minor' adverse — late payments, high utilisation — keeps you within the standard secured loan market at slightly higher rates. 'Moderate' adverse — settled defaults, satisfied CCJs more than two years old — typically requires specialist lenders like Pepper Money or Norton Finance. 'Heavy' adverse — recent unsatisfied CCJs, current arrears, IVAs — narrows your options to Evolution Money and Together at the top of the rate range.
Severity, recency, and resolution all matter. A satisfied default from 4 years ago is treated very differently from a current arrears situation. Be honest about your situation upfront — specialist underwriters can usually still help, but they need accurate information to do so.