What is considered bad credit, and how is it measured or scored?

Bad credit is generally considered to be a credit score below 580 on the FICO scoring model or below 600 on the VantageScore model. However, credit scoring is not an exact science, and different lenders may have different criteria for determining what constitutes bad credit.

Credit scores are calculated based on various factors, including payment history, credit utilization, length of credit history, types of credit used, and new credit inquiries. A low credit score may indicate a history of missed or late payments, high credit card balances, defaulted loans, or other negative credit events.