An adverse credit check is a type of credit scoring used by lenders to assess the riskiness of a borrower. They look at your credit history and see that you have had financial difficulties in the past. Lenders use this information to decide whether or not to approve a loan and what interest rate to charge.

First, check your credit report for any errors or inaccuracies. If you find anything that isn’t accurate, dispute this with the relevant credit bureau. You should also try to keep up with all of your payments, even if they are just the minimum payments. Start by paying off as much debt as possible, and then make sure to always pay your bills on time from now on. You can also try to rebuild your credit score by taking out small loans and repaying them. These can help improve your credit score over time.

Adverse credit can stay on your file for a long time, depending on the severity of the offence. In many cases, adverse credit can remain on your file for up to seven years. However, if you have been declared bankrupt, this will usually stay on your file for ten years.

A bad credit score may impact your personal life. To recover from a bad credit score, adopt healthy financial practices such as paying down your debt on time. You should also maintain a credit utilisation ratio of below or equal to 30% to help improve your bad credit score.