How Do You Get Bad Credit?

How do you get bad credit? Bad credit or a low credit score may be caused by financial problems related to a divorce or inaccurate information on your credit report. Delinquent payments are the most important...

Delinquent payments are the most important factor in credit scores. The more recent they are, the worse it is. For whatever reason, some people just mismanage their money, but others have a personal disaster or some sort of catastrophic event to account for delinquent payments. Divorce is the biggest driver of financial problems. The next factor in regard to the credit score itself is what's called utilization of credits. If it looks like you are using a lot of credit, it can damage your credit score. The credit report is the underlying data and the score is the grade that is applied to the data. For example, when you hand in a paper to your teacher, the paper that you write is the credit report and the grade that she gives would be the credit score.

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