What Does Bad Credit Mean?

bad credit means that you may have defaulted a loan or missed a credit card payment. Due to this you can be become labelled as a bad credit risk. This can create problems when you come to arrange loans or other financial things and usually means that more interest will be charge on any loan that you take.

Credit report contains information of borrowers credit history and if this record is affected by late payments, bankruptcy, loans, skipping payments, exceeding card limits etc then the credit report becomes poor and this is termed as bad credit. Lenders review the credit history before approving loans, credit card etc. You can check your credit status at www.creditreport.com.