Bad Credit is described as a negative or undesirable state of one’s past financial health. Loans are the most common reasons for being in this condition with people unable to repay them due to various situations, mainly unemployment. However, it can also be because an individual is spending more than they are earning by living ‘beyond their means. It is very important for people to understand what is Bad Credit and how it affects them in all aspects.
In Canada, credit scores of 670 to 900 are usually considered acceptable or excellent. Bad credit, on the other hand, refers to credit ratings below 580 and implies that you have a track record of late payments.