It’s a negative credit rating also known as called sub-prime credit history, non-status credit history, impaired credit history, poor credit history, and bad credit history. A negative credit rating is often considered undesirable to lenders and other extenders of credit for the purposes of loaning money or capital.
A consumer’s credit history is compiled by consumer reporting agencies or credit bureaus. The data reported to these agencies are primarily provided to them by creditors and includes detailed records of the relationship a person has with the lender.
Detailed account information, including payment history, credit limits, high and low balances, and any aggressive actions taken to recover overdue debts, are all reported regularly (usually monthly). This information is reviewed by a lender to determine whether to approve a loan and on what terms.