We here so many different takes on what actual bad credit represents that we understand the confusion. First of all…
We need to understand that our credit rating essentially determines RISK. So good credit means that a borrower is likely to fulfill his part by providing on time payments up until completion. Bad credit means just the opposite. It means high risk of defaulting on credit balances, especially larger ones. Gershfeld Law Group is familiar with cases like these and the most common question people have when they’re teetering on the verge of bad credit is, “how do credit scores get rated?”
How are credit scores or ratings determined?
Ever heard of FICO? It stands for the Fair Isaac Corporation and they calculate credit scores by using credit data from the three main bureaus: Experian, TransUnion and Equifax. And the most important information it takes into consideration? Payment history. In fact, a third of your credit score is determined by your credit history. In other words, if you make payments on time you will most likely have a higher credit score. There are other facts to consider but we can cover that in a future blogpost. For now, please keep in mind that if you are swamped with debt… relief is just click or phone call away. Gershfeld Law Group is here to help you with your debt!