What Is Considered A Bad Credit Score?

What is a bad credit score?

When it comes to applying for a credit, there’s a vital piece of information that affects how lenders and banks view you: your credit score. Understanding what makes a good and bad credit score is the first step to being accepted for credit, and getting the very best deals.

Most people have bad credit to some degree - it's practically impossible not to. Most of the time, having bad credit doesn't mean anything more than you're not as financially responsible as the lender would like.

What is a good credit score?

When you want to apply for a loan in the future, they will take into consideration your credit score they do on potential borrowers. This score is between 0-999. Though it can be tough to maintain a high credit score due to occasionally needing some breathing room in your finances.

A rating of 777 to 999 would show you to be financially responsible, and a credit provider should have little issue extending credit to you.

What is a bad credit score?

Medium risk rating is 651-680 which may be cause for some concern because securing a loan may not be easy to come by. You might fall into the higher risk category with a 597 to 628 credit score and this could make things difficult when you apply for credit. Below that you're considered high risk and you'll either be declined or offered a very high interest rate.

Factors that influence your credit report and scores

  • Late and missed payments
  • Excessive credit card usage.
  • Seeking a lot of credit in a short time.
  • Major negative financial events.

If you have a bad credit score, it means that you have a low credit score. The lowest credit score is a 550. If you have a credit score of 550 or lower, you will have a bad credit rating. The credit rating system uses different factors to come up with your score. These factors include the amount of debt you have, how long you've had credit, and whether you pay your bills on time. This is why it's important to know what is considered a bad credit score and rating.

For more information on your credit score and rating, contact Credit Health.

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