What Does a Bad Credit Score Look Like?

What does a bad credit score look like?

In order to understand answer “What does a Bad Credit Score Look Like?” we’re going to give you a little background information. Having requested your file from a referencing agency, you will see details of your loans and debts listed. With each loan and debt will be a few details about the account. These might include the date the account opened, the initial advance, the monthly payment and duration of the loan. In other words, basic information.

Generally, there is then a row of numbers underneath. This is where most people become confused. Hopefully, these numbers will be all zeros. This would signify that your payments are up to date and everything is in order.

However, there may instead be a row of numbers. These numbers signify how many months of payment arrears there are. For example, such a string may look like this:

000011234522212343321

What does a bad credit score look like In The UK?

These numbers (for a UK score) would show that this particular loan account was paid to date for the first four months (the string of zeros) and then steadily payments were missed. This culminated with five months of payments owing until some form of lump sum was made bringing payments owing down to two months. Hopefully, this now makes a little sense.

This is not an example of a very bad credit score, probably only a poor score. However, if there are a collection of loans (as is often the case) and they all show a poor payment history (arrears), then yes, this is a bad credit score.

Therefore, you need to ensure that your credit rating shows lots of zeros!!

If you are in the US, then you actually receive a score, for example 540 or 610. The numbers are explained on each score as to how they are calculated and what they mean. Having seen a few, I can say that they are far less complex than the UK version.

2 thoughts on “What Does a Bad Credit Score Look Like?

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