What are the parameters of good and bad credit?

Good credit typically involves a high credit score (usually 700 or above), a history of on-time payments, low credit utilization (ideally below 30%), and a diverse mix of credit accounts. In contrast, bad credit is characterized by a low credit score (often below 580), missed payments, high debt levels relative to income, and potentially negative marks such as bankruptcies or collections. Maintaining good credit requires responsible financial behavior, while bad credit can limit access to loans and result in higher interest rates.