Having bad credit basically means that your credit file contains adverse information relating to your financial situation and history, including information such as your repayment habits on bills and debts, any arrears or defaults, any court action relating to financial matters, etc. The information on the credit file then affect your credit rating, which is what lenders look at when you apply for any form of credit, and the more damaging the information the lower your credit rating will be, and the more likely you are to be turned away for finance in the future.
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