Bad Credit

Bad credit refers to a low credit score resulting from past financial behaviors such as missed payments, high debt levels, or defaulting on loans. It indicates to lenders that you may be a higher risk borrower, which can make it more difficult or costly to obtain loans, credit cards, or favorable terms. Your credit history is assessed by credit bureaus, and factors like payment history, amounts owed, length of credit history, new credit, and types of credit used influence your score. Improving bad credit typically requires consistent, responsible financial management over time.