A bad credit score indicates that a person is a high credit risk based on the credit score generated from the information in their credit report.
When we talk about credit scores, we are referring to a number used to determine your creditworthiness.
Your credit score is generated by a formula based on the information contained in your credit reports.
The most commonly used credit score used in the lending industry today is the FICO Score which typically has a range of 300 to 850.
Consumers with FICO Credit Scores of
– 800 or higher are considered to have exceptional credit.
– 740 to 799 are considered to have very good credit.
– 670 to 739 are considered to have good credit.
– 580 to 669 are considered to have fair credit.
– 570 or below are considered to have Poor or Bad Credit.
To put things in further perspective, according to a 2019 study done by Experian, the average FICO credit score in the US is 703.