Bad credit:
A term used to describe a poor credit rating. Common practices that can damage a credit rating include making late payments, skipping payments, exceeding card limits or declaring bankruptcy. "Bad Credit" can result in being denied credit.

Credit Rating

An assessment of the credit worthiness of individuals and corporations. It is based upon the history of borrowing and repayment, as well as the availability of assets and extent of liabilities.
Credit is important since individuals and corporations with poor credit will have difficulty finding financing, and will most likely have to pay more due to the risk of default.

Credit Enhancement

A method whereby a company attempts to improve its debt or credit worthiness.

Impaired Credit

The deterioration of a borrower's credit rating.
Any weakening of a company's finances will cause an impairment of credit. Consequently, it results in a reduction of the credit offered by lenders.
Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing interest rate.