What counts as bad credit?

When people talk about “bad credit”, they’re usually referring to information recorded on a credit report that may concern lenders.

This doesn’t automatically mean finance is impossible, but it can make approval more challenging with some providers.

Common causes of bad credit

Bad credit can be caused by a variety of factors, including:

• Missed or late payments on loans or credit cards
• Defaults on credit agreements
• County Court Judgments (CCJs)
• High levels of outstanding debt
• Using most or all of your available credit
• Limited, thin, or inconsistent credit history

Lenders often view these factors as indicators of increased risk.

Is bad credit permanent?

No. Most negative markers remain on your credit file for up to six years.

However, their impact can reduce over time — particularly if your recent payment behaviour improves and finances stabilise.

Can you still get car finance?

Yes. Some lenders specialise in assessing applications from people with bad credit histories.

These lenders often focus more on affordability, income, and current circumstances rather than past credit issues alone.