How do the credit grantors determine I have "Bad Credit?"

Many people find out the hard way that as little as one late payment can bring credit denials at every turn. It is a myth that lots of good credit can outweigh a little bit of negative credit. Any negative credit at all can be a major credit obstacle for most people. “Bad Credit” can also be determined by the credit score that you receive based on your credit report. Credit Score, commonly known as the FICO score, is a statistical summary of information contained in the credit report. It is determined by assigning numerical value to various pieces of information in the credit report. It is a predictor used by creditors to determine whether you will be able to pay your future bills on time. Generally the scores range from 550-800 and you can get potentially 3 scores: 1 based on each of the 3 major credit reports.

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