Property Repossession - Credit Rating At Downfall
In the UK, credit checks are mainly made by two credit agencies (the Experian and the Equifax). Between them they hold your entire credit history on file. They reveal to anyone who looks at your record what loans you have now or have held in the past, and how efficient you were at repaying those loans. Your history is credit scored, and it is this score that loan companies look at when assessing any loan applications that you make. Should you have suffered a property repossession you can be sure that this fact will be clearly noted on your credit file. A County Court Judgement (CCJ) ordering a property repossession has a huge negative impact on your credit score. Even if you manage to stop the mortgage repossession before it gets to a court hearing, the fact that you have had mortgage arrears with your home loan company will count against you, and will be recorded on your file. Together, CCJs and arrears can make it very difficult for you to obtain credit in the future for a period of about 6 years.