What exactly is a bad credit rating?
The FICO credit rating design assigns every person number between 300 to 850 that indicates exactly how likely that individual would be to default on financing centered on their particular credit score. The lower your FICO rating is, the riskier you shall may actually loan providers, while the more difficult it will be to borrow cash.
Many lenders consider a FICO rating under 580 to be subprime , that is the term that is technical make use of for some body with bad credit. Some loan providers are also pickier, setting the club in a rating of 600. Beneath the VantageScore system, that will be a somewhat various credit rating model, a score under 601 indicates bad credit.