Bad credit refers to a person's or entity's poor history of paying debts in a timely manner, as agreed. It is typically measured by credit bureaus through various factors such as missed payments, high levels of debt, and defaults on loans. When an individual has bad credit, it may indicate that they are deemed to be financially risky or unreliable in meeting their financial obligations. Consequently, this can make it difficult for them to obtain new lines of credit, such as loans or credit cards, at favorable interest rates or terms. In summary, bad credit is a negative indicator of an individual's ability to manage debt and may result in limited access to credit.