There are Many Ways to Describe Bad Credit, Adverse Credit is just one of them
Adverse credit is a term used to describe a credit given to a person that has faulted on past credit agreements
As a result of this has suffered a bad credit rating. It means exactly the same as Bad Credit, Poor Credit or Sub-Prime, which tells potential lenders that they are at risk of not recouping borrowings.
You credit rating is information that is recorded from the monitoring of your borrowing,
The credit reference agencies supply all this information to anyone to whom you’ve applied for credit. This includes potential lenders, insurance companies, banks, landlords, employers, a anyone you have asked to provide a product or service to you. The main credit reference agencies are Equifax and Experian and there are various websites which allow you to register to access your credit rating.
Therefore if you have borrowed in the past and have successfully repaid your debts on time
You are a low risk to potential lenders, therefore they are likely to offer better deals in terms of interest rates on loans, mortgages and credit cards. However if you have struggled with your debt repayments in the past and have missed repayments, or received late payments charges, defaults or CCJs this is recorded on your credit file, meaning that there are limited financial options available to you. Although limited there are a number of adverse credit options available, these often come with higher interest rates. The benefit of adverse credit options is that borrowing and repaying on time can improve your credit rating.
In short if you being declined credit it is likely you are affected by adverse credit,
You could get yourself back on track in terms of your finances, which will in turn improve your credit rating, opening doors for better finance options in the future.