Glossary

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Having trouble with some of the finance related jargon? Then take a look through our glossary of the most popular finance and credit related terms used around the site.

Adverse Credit: Adverse credit is where a negative or bad credit rating is associated with bankruptcy or a poor credit history. Adverse credit is usually considered to be unattractive to potential lenders and often impairs the individuals ability to acquire any form of credit.
Adverse Credit History: Defaulting on a loan or credit repayments can lead to an adverse credit history (also known as a poor credit history or a bad credit history). An adverse credit history is a negative score on a credit rating scheme and can lead to refusal of credit applications and increased charges on future lending.
Adverse Credit Bank Account: An Adverse Credit Bank Account is a bank accounts for people with a bad credit rating, County Court Judgements (CCJ), or individuals who have previously claimed bankruptcy. Because people needing Adverse Credit Bank Accounts tend to pose a higher risk to the Bank or Building Society, the benefits offered by Adverse Credit Bank Accounts are often fairly limited limited and will usually differ from bank to bank.
Adverse Credit Card: An adverse credit card can be of benefit to individuals with bad credit history or adverse credit and are finding it difficult getting a standard credit card.The interest charged is often slightly higher than that of a standard credit card.
Adverse Credit Homeowner Loan: An Adverse Credit Home owner Loan is a loan for individuals with a bad credit rating, County Court Judgements (CCJ), or have previously claimed bankruptcy. Because people with Adverse Credit pose a higher risk to the lenders, the interest on loans is often a lot higher than a regular loan and the repayment period may be shorter. Being a homeowner helps with these matters as an Adverse Credit Homeowner Loan often offers lower interest rates as the loan can be secured against the borrower's property, creating less risk to the lender should the borrower falter on repayments. Adverse Credit Home owner Loan interest rates and repayment periods may vary from lender to lender.
Adverse Credit Loan Remortgage: Re-mortgage Loans for individuals with adverse credit can enable borrowers to re mortgage their property, even if they have a CCJ, a bad credit score or have claimed bankruptcy. Borrowers often remortgage to replace an existing mortgage deal, usually to obtain a cheaper mortgage rate, or to free up the equity gained by the rising value of the property over time. Because a borrower with adverse credit tends to pose a higher risk to the lender, remortgage loans for people with adverse credit often tend to carry higher interest rates than that of regular re mortgage deals.
Adverse Remortgage: Adverse Remortgages are another way of arranging alternative finance, either by a person with an adverse or bad credit rating, or by purchasing a property which is already owned/mortgaged by them. An Adverse Re mortgage is often required for the purpose of freeing up equity from the property. Because such a borrower is a higher risk to the lender, an Adverse Re-mortgage often tends to involve higher interest rates, the loan amount may be lower, and the period of repayment shorter. Different banks and lenders rates do tend to vary considerably.
Alias: An alias is any name an individual has previously been known by. Many people tend to change their names after marriage or divorce. They may also have a middle name that are sometimes use in full and sometimes as an initial. Your credit report will include all of your aliases.
Annual Report: An annual report is report that all public companies produce annually to provide shareholders with an overall view of the companies' performance and growth.
Arrears: Arrears is a type of debt incurred when one misses a payment.
Bad Credit Bank Account: A Bad Credit Bank Accounts is an account for an individual with a bad credit score, County Court Judgements (CCJ), or bankruptcy. More often, people who need Bad Credit Bank Accounts tend to pose a higher risk to the holding Building Society or bank, so the benefits offered by Bad Credit Bank Accounts are often limited and usually vary between banks.
Bad Credit Car Finance: Bad credit car finance is a specific financial service aimed at helping to provide loans and credit for car buyers with a bad or adverse credit rating.
Bad Credit Car Loan: A Bad Credit Car Loan is a loan specifically for individuals with a bad credit rating who want to borrow finance in order to purchase a car. People with bad credit scorings pose a higher risk to the lender, Bad Credit Car Loans often carry higher rates of interest.
Bad Credit Credit Card: A bad credit credit card is suitable for individuals with bad credit history or adverse credit card who are finding it difficult getting a standard credit card. Higher interest rates often apply.
Bad Credit Credit Cards: A Bad Credit Credit Card is a credit card specifically designed for individuals with bad credit ratings, CCJs or who anyone who has had to file for bankruptcy. Bad Credit Credit Cards work just like normal credit cards, but due to the perceived higher risk the applicant faces to the card issuer, they often carry a higher rate of interest when compared to standard credit cards.
Bad Debt Credit Card: A bad debt credit card is often suitable for people with adverse credit history who cannot get approved for a standard credit card.
Bad Credit Home Loan: A Bad Credit Home Loan is a loan secured against a property and is designed specifically for people with CCJs, bad credit ratings or anyone who has filed for bankruptcy. A Bad Credit Home Loan is similar to a normal home loan, but because the borrower poses a higher risk to the lender, interest rates are often a lot higher.
Bad Credit Loan: A Bad Credit Loan is a loan is a loan for borrowers with very poor credit ratings, CCJs or anyone who has filed for bankruptcy. Charges and interest rates on Bad Credit Loans are often higher due to the increased risk the borrower poses to the lender.
Bad Credit Personal Loan: A Bad Credit Personal Loan is an unsecured loan tailored specifically designed to help borrowers who have filed for bankruptcy, have CCJs or have a bad credit rating. Bad Credit Personal Loans are often used for low value borrowing on a short term basis only but because the borrower often poses an increased risk to the lender, interest rates are usually a lot higher than non Bad Credit Personal Loans.
Bad Credit Personal Secured Loan
Bad Credit Remortgage: A Bad Credit Remortgage is a useful way for an individual with a bad credit rating to take out a new mortgage with a new lender even though the he/she is not moving home. Bad Credit Re-mortgage are often used as a means to free up equity in a property and usually carry higher interest rates when compared to a non Bad Credit Re mortgage due the perceived risk the borrower poses to the lender.
Bad Credit Unsecured Loans: Bad Credit Secured Loans enable individuals with bad credit ratings to borrow money by securing the value of the loan against their home. Due increased risk an individual with a bad credit rating poses to the lender, Bad Credit Secured Loans tend to often carry with them a higher interest rate when compared to non Bad Credit Secured Loans.
Bankruptcy: When people cannot afford to meet the monetary demands of their creditors, they can declare Bankruptcy which provides them with a fresh start.
Bank Account: A Bank Account is a financial account with a financial institution which allows the owner of the Bank Account to deposit and withdraw money. Bank Accounts offer a whole range of benefits to the owner such as cheque books, cash withdrawal cards and debit cards. Bank Accounts also pay interest on the funds deposited within them. The amount of interest paid on funds held within a Bank Account, and benefits will differ from bank to bank.
Bank Credit Rating: A Bank credit rating is a lender's way of assessing whether you are a good risk to lend to.
Bad Credit Lenders: A bad credit lender specialises in providing loans or mortgages to borrowers with negative credit ratings. Charges levied on the loan or mortgage are usually higher because of the associated increase in risk.
Banking Ombudsman: The Banking Ombudsman is an industry-sponsored independent arbitrator who assesses public complaints against banks. Their decision is binding on the 60 banks that subscribe to the scheme, although the public does not have to accept its decision.
Bounced Cheque: A cheque that will not be honoured by a bank - usually because the payer doesn't have enough money in their account to cover the payment or because the cheque is fraudulent.
Business Credit Rating: A business credit rating is a reflection of the credit worthiness of a business. The credit rating is based on past financial transactions of the business and is a measure for lenders of the probability that any loan will be repaid.
Business Credit Report: A business credit report is a summary of the credit rating of a business. The business credit report should include the current credit status of the business and may also include information as to recent credit decisions.
Check Credit Rating: There are various agencies that provide services to check credit ratings for a small fee. This will usually result in a credit report being sent to the individual or business detailing current credit rating and past credit decisions.
Check Credit Report: In order to check credit reports individuals or businesses can pay a credit check bureau to run a report which details past financial decisions and current credit rating. Checking your credit report from time to time is a good practice, and has been shown to identify illegal behaviour in otherwise unsuspected acts of identity theft.
Clear Credit History: People with a bad credit history are often tempted to pay an agency to clear their credit history. Improving your credit history can be done for free by ensuring that repayments on credit cards, loans and mortgages are paid on time. This will improve your credit history naturally.
Clear Credit Rating: If you have a bad credit rating and are looking for a clear credit rating then you can do this naturally over time by ensuring that loan, mortgage and credit card repayments are made on time. Credit advice can be found for free via the Citizens Advice Bureau.
CCJ: A CCJ, or County Court Judgement, is a record of a debt decision that a court has had to take against an individual. The CCJ is noted on credit references and may affect the level of credit or cost of credit that an individual will be granted.
County Court Judgment: A county court judgment, or CCJ, is a decision taken by a court on a debt and usually occurs when a debt has not been re-payed on time or in accordance with the terms of the loan, forcing the lender to take the matter to court. County court judgments will affect future borrowing costs and eligibility.
Credit Account: Credit agreements or credit accounts include any account that gives you money, goods or service with the understanding that you will pay at a later date. Credit agreements can include credit cards, loans, mortgages, utility accounts and mobile phone accounts.
Credit Bureau Report: A credit bureau report is a credit rating report from a recognised credit rating agency. A credit bureau report is normally available for a small fee.
Credit Rating: A credit rating is a measure used by lenders of the probability that any money lent will be repaid according to set terms. A bad credit rating will normally result in an increased cost of borrowing or a refusal of credit from lenders. Your credit rating can be sent to you in a report that is available at a small cost from credit rating agencies.
Credit Rating Advice: If you need credit rating advice then your Citizens Advice Bureau ahould be able to help. There are various online organisations that offer debt management or credit rating advice for free. Seeking good credit rating advice is a great first step to repairing a bad credit history.
Credit Rating Repair: If you have a bad credit history then repairing your credit rating can be accomplished for free by making sure that loan, credit card and mortgage repayments are made on time. Some agencies offer a credit rating repair service for a cost, but it is possible to repair credit ratings for free.
Credit Rating Score: Your credit rating score is a reflection of your credit worthiness and is used by lenders to decide if an individual is trustworthy enough to repay a loan. A bad credit score may result in a higher cost for borrowing or a refusal to issue credit at all.
Credit Rating System: The credit rating system is used nationally to assess whether an individual or business is worthy of being granted credit by a lender. The credit rating system uses past financial records and credit decisions and repayment records to decide if a line of credit is likely to be repaid.
Credit Scoring: Credit scoring is a system by which everyone in the UK is assigned a numerical score when applying for credit. The scoring is based upon previous credit history and measure the probability that a loan or mortgage will be repaid fully within the agreements of the loan.
Credit Poor Rating Remortgages: Credit poor rating re mortgages, or poor credit rating re-mortgages are mortgages borrowed, to replace an existing mortgages by individuals with a bad credit score, CCJ or have defaulted on repayments.
Credit Reference Agency: A company that provides credit information such as history and credit rating on individuals.
Credit Repair: The process undertaken by individuals to improve their credit ratings.
Credit Score: Credit score is a number that indicates a person's credit worthiness. It is based on analysis of a person's credit files.
Financial Associates: If you have a joint credit account, for example a loan or a credit card, then the person you share the account with is also considered to be a financial associate. That person's name will appear on your credit report.
Gone Away Information Network (GAIN): The Gone Away Information Network is used to monitor situations where someone with outstanding debt moves home without providing the lender with a forwarding address. Any information about outstanding debts that GAIN has about you will appear on your credit report.
Guarantor: An individual who pledges to honour and pay specific contracts or debts should another individual fail to do so. A guarantor is usually required before an organisation issues a contract or loan to a borrower it believes to be a risk.
Identity Fraud: Identification fraud (ID fraud) is when someone else uses your name and personal information to apply for credit or commit another crime.
Insolvency: Insolvency is an inability to repay debts. Individuals who have been judged to be insolvent often tend to declare bankruptcy, create an individual voluntary arrangement (IVA) or receive an administration order to get out of debt. Details of insolvency arrangements will appear on your credit report.
Minimum Balance: The minimum balance is the smallest initial sum that is permitted to be in an account for a given interest rate.
Notice of Correction: A Notice of Correction is a short explanation of the circumstances surrounding a specific event in your credit report. For example, if you can show that you were unable to make a certain repayment on time due to illness, then it can be worthwhile to add a Notice of Correction to your credit report.
Penalty Interest: Penalty interest occurs on accounts where certain conditions are in place. Breaching those conditions may result in loss of interest or charges levied.
Poor Credit Car Finance: Poor credit car finance is a car loan specifically designed for individuals with poor credit ratings. The interest rate of the poor credit car finance are often higher, reflecting the perceived increase in risk to the lender.
Poor Credit Loans: Poor credit loans enable individuals with bad credit ratings, CCJs, or bankruptcy to gain access to finance, repayable to the lender over an agreed period of time. Poor credit loans often carry with them a higher interest rate and can differ in repayment terms to regular loans because of the higher perceived risk to the lender.
Repossession: Repossession is when someone is unable to repay their mortgage and their property is taken back by the lender. Repossession reports are also documented on your credit report.
Statutory Credit Report: It is a legal requirement that everyone has the right to view their credit report for a fee of £2.
Subprime Lending: Subprime lending is the action of lending to borrowers with bad or adverse credit histories. A subprime loan has a higher attached risk and therefore the cost of borrowing is usually higher.

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