What constitutes a bad credit score?
It’s hard to put an exact number on this range, because it tends to fluctuate with changes in the economy. For instance, a score that was considered “decent” two years ago might be considered a bad credit score by current standards. So a simple definition would be this: a bad credit score is one that prevents you from getting qualified for a mortgage loan, or one that results in an extremely high interest rate if you do get qualified. There are also different scoring models in use today, so a bad score can be defined differently based on the system being used. In fact, all of the credit-reporting agencies use different scoring models. Equifax uses the Beacon scoring system, Experian uses FICO (which stands for the Fair Isaac Corporation that created it), and TransUnion uses Empirica and Precision Score. When lenders review your credit, they usually pull two of three scores mentioned above. FICO is the mostly commonly used system within the mortgage industry. Now you can see why it’s ha
