What is a bad credit score?

You will have many credit scores as a consumer. Depending on the lender you approach, the type of loan or credit you’re applying for, and the credit scoring model used, your scores may differ. FICO® and VantageScore® are the most commonly used scoring models.

In a range of 300-850, 300-579 is considered a bad FICO Score, whereas a score between 300 and 660 is considered a bad VantageScore. Scores below 500 are considered very poor VantageScores. Both FICO and VantageScore also release different versions of their scoring models from time to time. So even if two lenders use the same scoring model, they may be using different versions of scoring and you may get a different score on each.

Having a bad credit score can impact your finances in many ways: you may be denied approval for a credit card; loans, if granted, will have higher interest rates, and annual fees; the types of credit cards you can apply for will also be limited, e.g., a secured credit card which may require a security deposit.