Over Half of Americans Have Subprime Credit
Depending on which credit reporting source you use, your credit could look pretty good--or pretty bad.
There's a huge range for bad credit. How can you tell where you fall?
Often, reporting agencies have a wide range for what qualifies for excellent, good, and poor credit. And, within those categories, can be an even wider range of good / bad credit. Some creditors see the mid-600s as poor or subprime credit, while pickier sources like TransUnion, count anything under or straddling 700 as subprime credit. While this can seem like a nusiance, being aware of all the credit ratings out there can mean the difference between more available lending and more favorable interest rates, and limited funds and high interest rates on that lended money.
No matter where you fall on the credit spectrum, finding dry land can, at various times throughout life, be tricky.
How Long Will My Bad Credit Last?
Depending on the kind of bad credit you're carrying, it can pop up on your credit report anywhere from up to 7 to 10 years--bankruptcy being the major cause for people experiencing bad credit for a decade or more.
What Effect Does Bad Credit Have On My Life?
Unfortunately, having bad credit can effect most aspects of your life, ranging from the types of interest and credit limits you're offered by credit card companies, to the types of car loans you qualify for, all the way to your ability to buy and maintain a house. In fact, homeownership has dropped to its lowest levels in 20 years--a sign that many people were dramatically sidelined from a financial perspective during the Great Recession.
Embracing your credit situation--whether you're experiencing subprime credit or sitting pretty--is one of the surest ways to advance your financial reputation, improve your overall quality of life, and increase your ability to weather any and all financial storms.