Research Shows 70% Of People Think “Bad Credit” is More Severe Than It Is

How Bad Is "Bad Credit"? 70% of People Think Its Worse Than It Is We all know there's no substitute for maintaining a healthy credit rating, but sometimes life isn't that simple. GOOD POOR THE END If you're unfortunate enough to fall into financial difficulties, how bad does it really get? NO CREDIT Many believe that receiving a credit "black mark" is the end of the road and they'll never be able to gain any sort of credit ever again. But how long will bad credit haunt you? Is it really the end of the line? We've done some research as we suspected "bad credit" ISN'T always as bad as you might think. The data proves it. THE STATS "Black Marks" On Your Credit File 70% 70% think it's worse than it really is 73% Do women understand "Bad Credit" better than men? 73% didn't know how long "black marks" last Are men more pessimistic? 31% women answered the questions correctly, opposed to 24% of men 66% of women think bad credit is worse than it really is, but over 70% of men think it's worse Missed Mortgage Payments A missed mortgage payment or "default" takes 6 years after the default date to drop off your credit file. 51% 51% of people think a missed mortgage payment is never forgotten 65% of people think a missed mortgage payment is worse than it is Only 26% of people knew that a default takes 6 years to be forgotten 65% 26% It is never forgotten б уеars CCJS A County Court Judgment (CCJ) is issued when you fail to pay money that a court deems you An unsatisfied CCJ takes 6 years to be forgotten from your credit history. owe. These are only kept on record when they're not paid within a month of being issued. Who thinks it's worse? 71% 71% of people didn't know how long a CCJ would stay on their file Women - 56% Men - 71% 40% of people think a CCJ is never forgotten 30% knew it's 40% only remembered for 6 years 30% It is never forgotten б уеars IVA An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to pay off your debts. An IVA takes 6 years to fall off your credit file. 20% of people think an IVA 69% of people think an IVA is worse than 69% 20% takes 5 years it is to be forgotten 40% 23% It is never forgotten 6 years We'd only ever advocate thorough financial planning and responsible spending, but our research shows it isn't as bad as you think. The good news is a black mark on your credit file doesn't last forever, so maybe it's time to look towards the future rather than dwelling on your financial past. References: http://www.justmortgagebrokers.co.uk/blog/bad-credit-perceptions/ just MORTGAGE BROKERS www.justmortgagebrokers.co.uk