What is a credit blacklist?
There is no such thing as a credit blacklist.
Creditors decide who to lend to by using the information in your credit file, and their own measures. They do not depend on credit scores alone.
Some companies specialise in lending to people with a bad credit history.
How can poor credit affect me?
Poor credit can affect you in a few ways. But it is important to remember that poor credit does not last forever. It can be fixed over time.
Can I get a mortgage with a poor credit history?
When you apply for a mortgage, lenders will check your credit history. They do this to make sure you can afford to pay the mortgage.
If your credit history is poor, the mortgage lender may refuse the mortgage or charge you a higher rate of interest.
There are some companies that specialise in mortgages for people with poor credit. Think carefully before going ahead with these companies. They often charge a much higher rate of interest, meaning your mortgage will take longer to pay off.
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Can I rent with a poor credit history?
When you apply to rent a property, many landlords or letting agents will check your credit history to make sure you can afford the rent. But they need your permission to do this.
If your credit history is poor, the landlord or letting agent may:
- Refuse your application
- Ask for a guarantor
- Ask for larger deposit
Some landlords only check public information like the public register of court judgments and the public register of insolvency. This means missed payments or defaults might not affect your application.
Can my credit history affect my job?
Some employers run credit checks on new or existing staff. This usually happens if you work in:
- Legal services
- Financial services
- Property conveyancing
- Accountancy
You can check if poor credit will affect your job by:
- Checking the terms and conditions of your employment contract
- Speaking to your HR department
- Speaking to your trade union or professional body
Can my credit history affect my car insurance?
Insurers will run a credit check on you to make sure you can afford to pay the insurance.
It is unlikely that poor credit will stop you getting an insurance policy, but you can be charged a higher interest rate if you pay monthly.
How can I improve my credit file?
There are several ways to improve your credit file and credit score. It is important to remember that improving your credit file takes time, but it is possible and anyone can do it.
If you are going through difficulties with money and debts, it is best to focus on that first before your credit file. We have lots of guides about increasing income and reducing spending, and we are always on hand to support you with free online debt advice.
You can also sign up to our 7 days, 7 ways email programme for a step-by-step guide on getting your finances organised.
There are some ways you can boost your credit score in the short term, and you may find that some of the long-term goals already apply to you. Such as:
- Registering on the electoral roll to prove where you live
- Staying at one address for a long time - moving home often can lower your credit score
- Checking your credit file for errors or any activity that looks suspicious - for example, a new debt appearing on your credit file that you know you did not apply for
- Keep making payments on time if you are able to