Adverse Credit History Explained

Learn all about adverse credit history, including how it affects you, how long negative items stay on your report, and actionable steps to improve your credit.

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Written by Hayley Bevan and Victoria Smith

Published on July 28th, 2025

Last reviewed on July 28th, 2025

6 mins read

Understanding credit cards

Adverse credit history (ACH) could suggest to lenders that you’re struggling with your finances and it may impact your ability to borrow.

Usual suspects for adverse credit history include defaulted payments, county court judgements (CCJs), and bankruptcy to name a few – all of which leave a negative mark on your credit report.

Let’s take a look at adverse credit history in more detail, from how it affects you and how long it lasts, to actionable steps you can take to improve your credit history and build better credit.

What is Adverse Credit History (ACH)?

Otherwise known as bad credit, adverse credit history refers to the negative markers on a credit report which might include defaulted payments, bankruptcy and court judgements.

In short, it’s a record of your financial commitments, with particular interest on your borrowing and repayment behaviour from the start of your credit journey.

Lenders use this information to determine how likely you are to repay any credit agreement they approve for you. The more markers on your file, the less likely it could be that your application is accepted.

If you currently have an adverse credit history, it’s important to know things can improve with good financial behaviour. It’s never too late to get back on track with credit.

What causes adverse credit history?

An adverse credit history is ultimately a result of not managing credit responsibly, which might include one or more of the following negative markers:

Delinquent payment which is a missed payment on a loan, credit card, or any other type of repayment obligation which might also trigger late fees or negatively impact a credit score.

Charge-offs which is a debt written off by a lender as a loss because it’s unlikely to be repaid. When a charge-off is actioned, the debt still exists and will remain on a credit report for seven years.

Bankruptcy is a legal status for those who are unable to repay what has been borrowed. It’s an option generally seen as a last resort and can only be implemented with debts over £5,000.

Foreclosure is when a lender takes possession of a home if you default on mortgage repayments. Not only can it cause a lot of stress, but it can also seriously damage your credit rating.

Default is when a lender closes a credit account due to repeated missed payments over several months or more. Each default is recorded on your credit report and can lower your credit score.

Each negative marker has a varying impact, with bankruptcy and foreclosure generally more likely to cause adverse credit history.

How adverse credit affects your finances

When applying for any form of credit, a lender will check your credit history to assess how likely it is you’ll make repayments on time.

If you’re deemed to have an adverse credit history, you’ll typically find it harder to obtain any form of credit which might include securing a loan, mortgage, or even renting a property.

Even if you do manage to secure credit with an adverse credit history, it’s highly likely you’ll be subject to higher interest rates, stricter loan terms, and other unfavourable additional fees.

For that reason, it’s a good idea to regularly check your credit report for negative markers that might be incorrect. Any potential discrepancies can be contested through a credit reference agency.

You should also remember that adverse credit history doesn’t have to be permanent. By making repayments on time and taking sensible measures with finances, you can rebuild your creditworthiness.

How long does adverse credit history stay on your credit report?

Evidence of adverse credit history can stay on your report between six to ten years, depending on the negative marker in question. Here’s a typical timeframe for each type of entry:

Charge-offs last seven years from the date the debt was first charged off your credit report.

Bankruptcy remains on your report for six years, as long as you’ve been discharged from bankruptcy restrictions after 12 months.

Foreclosure lasts for seven years from the date of the first missed repayment that led to repossession.

Default will stay on your report for six years from the date it was first registered, even if you repay the debt later down the line.

A county court judgement (CCJ) will remain on your report for six years and, like other markers, can impact your ability to secure credit.

Although it’s not ideal to have any type of negative marker on your credit report, the impact of each can diminish over time due to lenders having more interest in your recent borrowing habits.

So, even if you have an adverse credit history, there’s still a chance to secure credit provided you demonstrate sensible financial behaviour and pay back what you borrow on time.

How to check your credit history

You can check your credit history for free using any of the three major credit reference agencies: Equifax, Experian, or Transunion. With each option, you’ll typically follow these steps:

Create an account by submitting details such as your name, date of birth, and contact information.
Verify your identity usually via a link sent to the email address attached to your account.
Request your statutory credit report either by post or online, whatever works best for you.

It takes around seven working days to receive your report by post, but it’s generally quicker for online alternatives. Once received, you should check all entries are accurate and challenge any discrepancies.

If you’re an Aqua customer, you can check your credit history through the Aqua app. Powered by TransUnion, you’ll also get access to credit management tools and advice to help you build better credit.

Representative 34.9% APR (variable) on Aqua Classic.

How to fix your adverse credit history

When it comes to finances, nothing’s permanent. There’s always a way to improve adverse credit history and get your finances back into shape. Here are some steps to start moving in the right direction:

Register for the electoral register

This is one of the quickest ways you can potentially improve your score by a few points, simply by making it easier for lenders to verify who you are.

Settle debt as quickly as possible

Lenders will always consider your existing debt when calculating your score, so it’s best to make repayments on time and get your balance cleared as quickly as possible.

Get a credit builder credit card

As the name suggests, a credit builder credit card is designed to help you improve your poor credit record or, if you’re new to credit, to build a stronger credit score.

Check for errors on your credit report

Take your time to identify any possible errors or discrepancies in your credit report. If you have any queries, contact your credit reference agency (e.g. Experian) who’ll help you clear things up.

For more information on how to fix adverse credit history, read our article about the most common challenges of bad credit and what you can do about them.

If there is a positive that comes with adverse credit history, it’s that nothing is permanent. Provided the right financial steps are taken, you could gradually open more doors to securing future credit.

With an Aqua credit card, you have the power to improve your credit score. You’ll also get access to Aqua Coach, our free credit-building tool designed to help Aqua customers get better at credit management.

Failure to make payments on time or to stay within your credit limit means that you will pay additional charges and may make obtaining credit in the future more expensive and difficult.

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