Bad credit occurs when a person has a history of late payments, high credit utilization, or defaults on loans. Having bad credit can make it challenging to secure loans, credit cards, or favorable interest rates, as lenders view these individuals as higher risk. However, improving bad credit is possible with responsible financial practices. Strategies include paying bills on time, reducing outstanding debt, and avoiding new credit applications. For those with persistent issues, secured credit cards or credit-building loans can help rebuild credit over time. Understanding and addressing "bad credit" is essential for achieving long-term financial stability.