Scores that represent a bad credit history
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Scores that represent a bad credit history

Scores that represent a bad credit history

Updated: December 26, 2012

Add to Favorites:
When a borrower fails to make scheduled payments, he incurs a bad credit history. The failure of repayment may be due to various reasons like too much of loan taken, illness, personal financial loss or loss of job. Any kind of late payment, bounce check, insufficient money in the account or default or delay will have an adverse effect on the credit history of a borrower. Basically two types of credit scoring exists the FICO and the Vantage scoring system. What might stand to be a fair credit score in FICO, will be a bad credit score for Vintage.  The basic difference between the two scoring system is that while a FICO score range lies between 300-850, Vintage score range starts from 501-900. This difference in the base range of scoring creates a lot of discrepancy and therefore, FICO has been adopted by most of the credit card agencies as the scoring system to ascertain the credit history of a person. Bad Credit Categories as per FICO The following represents the different categories of debtors with a bad credit score. Based on how bad the credit history of a debtor stands, financial lenders will group borrowers in the following credit categories as per FICO scoring system. A-minus credit (FICO Score 575 to 619) FICO follows the following credit score pattern - Excellent: 750 and up Good: 720 to 749 Fair: 660 to 719 Uncertain: 620 to 653 Poor: 619 or lower A-credit score is ascertained to borrowers with not so serious defaults in the last twenty four months. Charge offs on small accounts like holdings of less than $500, late payment of hospital bills are not taken as serious offences. Under this category of scoring, a borrower gets a lease of more than two thirty days of late repayment or can avail to make only one late repayment of sixty days. B credit (FICO Score 575 to 619) This category of borrowers comprises of those who have made some or the other kinds of not so serious defaults within the last eighteen months. Borrowers of this group are allowed a late payment of thirty days four times or in case of late payment for sixty days for a maximum of two times. In case the borrower has made a default which was an isolated incident then a ninety days late payment is accepted in the last twelve months. Charge offs for less than $1000 are accepted and not taken as a serious credit offence. Any kind of foreclosure settled before the eighteen month time period is accepted. B- To C credit (FICO Score 525 to 574) This category accepts defaults within the last twelve months. Borrowers are allowed six thirty days’ late payments and only three late payments of sixty days or a maximum of two ninety days late repayment of loan amounts or monthly instalments. Charge offs above $4000 are not accepted. Foreclosures before the time zone of twelve months are accepted. C- To D credit (FICO Score less than 525) This is the lowest credit score that a borrower can be given and loan takers of this credit score are considered the worst lot of borrowers with total disregard for timely payments of installments and callousness. Mortgage payments of more than ninety days are not accepted in this category. When taking loans the borrowers belonging to this category have to pay higher interest rates and are asked to keep collaterals against their loan amount as a security for their payments.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading