What is considered "bad credit", and how is it calculated and determined by lenders?

There is no single definition of "bad credit" that applies universally. Different lenders or credit institutions may have different criteria and thresholds for determining whether someone has bad credit. Generally speaking, a credit score below 580 is often considered "poor" or "bad" by most lenders, while a score of 580669 is considered "fair." However, even if someone has a score above 580, they may still face challenges in getting approved for credit or loans, and may be subject to higher interest rates and less favorable terms.

Credit scores are calculated based on several factors, including payment history, credit utilization, length of credit history, types of credit used, and recent credit inquiries. When lenders evaluate someone's credit score, they may also consider other factors, such as income, debttoincome ratio, employment history, and any past bankruptcies or foreclosures.

Ultimately, whether someone has "bad credit" depends on how lenders and creditors view their creditworthiness, based on a combination of factors.