Bad Things Happen to Good People: What is the Definition of “Bad Credit”?
We hear the term “bad credit” tossed around a lot, but what does it actually mean? Credit reports and scores can be frustratingly difficult for the average consumer to understand. It boils down to a score calculated by the Fair Isaac Corporation, or FICO, based off of reports from three credit bureaus, Experian, TransUnion, and Equifax. The reports from these credit bureaus consist of multiple factors, including payment history, amount owed, length of credit history, and many others. Your FICO score ranges from 300 to 850, the higher being better. Depending on who you ask, a credit score below 570 to 630 is considered “bad” or “poor”, and you will have difficulty getting credit from lenders, including auto loans.