Adverse credit
Adverse credit is a situation where the borrower has CCJs, IVAs and bankruptcy on their credit file.

APR
APR is derived after adding interest rate and the charges on a secured loan. This is a more efficient method of comparison of secured loans. Interest rate may be a monthly or annual interest figure on the secured loan. APR however, represents the total amount of interest payable over the whole term of the loan.

Bank of England
The interest rate to achieve the treasury’s inflation target will be set by the Bank of England. Bank of England sets the base rate.

Bankruptcy
When a person becomes incapable of making payments towards his debts, Court judges him bankrupt. Bankruptcy is considered a bad credit and hence loan providers try to prevent such borrowers from using secured loans.

Base rate
Base rate is the lowest rate at which a lender will charge interest. It is set by the Bank of England.

CCJs
County Court Judgements are referred to in short as CCJs. This may happen when a borrower is not able to pay his debts. This is also considered a bad credit history by lenders.

Credit rating
Credit rating is a method used by loan providing agencies to assess credibility of a borrower. Credit reference agencies compile the credit report of a person on the basis of CCJs, bankruptcy, etc.

Credit reference agencies
The credit reference agencies record the credit history of borrowers. When the loan providing agencies want the credit report for information on credit worthiness, they advance such information. Borrowers too can get a copy of the credit report. Experian and Equifax are the main credit reference agencies.

Debt Consolidation
Debt consolidation is the process of bringing all debts together and then paying them through a single loan.

Debt Management
Debt management involves taking the help of experts in finding a proper solution towards debts.

Fixed rate
The interest rate on secured loan is fixed or stable for a specific period.

Flexible Loan
A flexible loan is where borrower is free to make as much repayment as he feels. He borrows as much as he wants and at such time intervals as he wants. The interest is calculated on a daily basis in flexible loans.

Loan
Loan is an advance to the borrower by the lender. It has to be returned after a specific time period along with an interest.

Secured loan
A secured loan is a distinct loan since there is a collateral involved in the loan. The lender can repossess the collateral if secured loan is not repaid in full.