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The term "bad credit" is used to describe a bad credit rating. Common practices that can damage your credit rating include making late payments, skipping payments, exceeding the limits on your credit cards, and declaring bankruptcy. Having a bad credit rating means you'll pay more for pretty much everything you need, from car loans to cell phones. Once lenders red-flag you as a credit risk, the flag will fly until everything has been paid or settled.

There are several reasons why good credit can go bad. Many people attempt to buy everything they need -- and want -- in one fell swoop, often leaving themselves with credit-card debt, car payments, home mortgages and other types of debt to pay off every month. Add student-loan payments, utilities, health insurance, groceries and other bills to the list, and some people will resort to using their credit card to pay them off.

That's a glaring sign that you're headed down the road toward a bad credit rating.

There are many things that can negatively affect a good credit score. This list from BankRate.com gives details about the various categories that can lower your credit rating.

MyFico.com can help you understand FICO scores and credit scores from Fair Isaac, the company that invented the credit-risk score most lenders use to evaluate your financial background.

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