A study on adverse credit of 4,192 adults conducted by YouGov on behalf of Pepper Money showed that 492 had experienced adverse credit, which is defined as anyone who has missed credit payments.
Between spring 2021 and October, the number of people with adverse credit with a county court judgement (CCJ) registered against them rose from 22 per cent to 27 per cent.
Over the same period, the number of people with adverse credit who have missed a payment on a mortgage or secured loan increased from 18 per cent to 23 per cent.
The study also found that the number people with adverse credit who decided to enter a debt management plan went up from 27 per cent in spring last year to 33 per cent in October.
Despite the increases, Pepper said the number of people who had some form of adverse credit over the last three years remained flat overall at around 12 per cent of the population.
Paul Adams (pictured) sales director at Pepper Money, said the Pepper Money Adverse Credit Study provided essential insights into the millions of people who have experienced a blip on their credit history.
He said: “While the total number has remained relatively flat over the course of the last year, we have seen an increase in the number of people reporting more severe forms of adverse credit such as CCJs and missed payments on secured and unsecured loans.
“However, just because customers have slipped up in this way does not mean that they should be prevented access to suitable mortgage options.”