How does a bad credit history come about in the first place?
There are a number of reasons why you might have a poor credit rating. The main reason is typically missing credit card, loan, mortgage or even utility repayments. If you fail to pay back a loan completely, or miss payments on your phone or utility bill, this can seriously affect your ability to borrow money in the future.
In addition, if you’re declared bankrupt, or you’re subject to an Individual Voluntary Arrangement (IVA) or County Court Judgement (CCJ), your credit rating will be affected.