Life throws us curveballs most of the time. At one point, misfortune, bad alternatives or adverse conditions may have landed your credit rating in the entry level associated with the scale. While you can find several credit scoring systems, the preferred may be the FICO rating that is employed by the top three credit rating agencies (Equifax, Experian and TransUnion). The FICO rating varies from 300 to 850, which can be a perfect rating.

The meaning of the bad credit history is determined by the financial institution and also the form of credit you’re seeking.

for instance, numerous home loan lenders consider something below 620 as sub-prime while other loan providers can start thinking about 640 or 680 sub-prime.