 The exact definition of what constitutes "bad" varies across different lenders, product types and target markets, however, examples may be ""missing three payments within the next 18 months"" or ""default within the next 12 months"".The score given to a customer is usually a three or four digit integer, and in most cases is proportional to the natural logarithm of the odds (or logit) of the customer becoming "bad".In general, a low score indicates a low quality (a high chance of going "bad") and a high score indicates the opposite.