Adverse credit

Adverse credit is a situation where a borrower’s credit file reflects CCJs, IVAs and bankruptcy.


APR is the sum of the 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.


When a person becomes incapable of making payments towards his debts, a Court declares him bankrupt. Bankruptcy is considered as bad credit and hence loan providers tend to avoid advancing secured loans to such borrowers.

Base rate

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


County Court Judgements are CCJs in short. This occurs when a borrower is not able to repay his debts. This is also considered bad credit by lenders.

Credit rating

Credit rating is a method used by loan-providing agencies to assess the 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 providers want the credit report for information on credit worthiness, the agency advances such information. Borrowers, too, can get a copy of their credit report.Experian and Equifax are the main credit reference agencies.

Debt Consolidation

Debt consolidation is the process of bringing together different debts and repaying them through a single loan.

Debt Management

Debt management involves taking the help of experts in finding a proper solution to a debt problem.

Fixed rate

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

Flexible Loan

A flexible loan allows a borrower to make as much of a repayment as he likes. He borrows as much as he wants and at such time intervals as he wants. The interest is calculated on a daily basis with flexible loans.


A loan is a cash advance to a borrower by a lender. It has to be repaid after a specific time period along with interest.

Secured loan

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