This term is used to describe a person who has a history of defaulting on credit repayments or has county court judgments or has been declared bankrupt.

A less-than favorable history of payments by a loan applicant.

An applicant for a Direct PLUS Consolidation Loan has an adverse credit history when he or she is 90 days or more delinquent on any debt or has been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the five years preceding the date of the credit report.