What’s the lowest credit score possible?

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The average credit score in the United States was 716 as of 2022, according to Experian®, and this is a credit score that many people would be happy to have. Using the FICO® score range, 714 falls within the “good” range, but what is the lowest credit score?

There’s a common misconception that the credit score you start with is zero, but that’s not the case. Today, you will learn what the lowest credit score is and the factors and situations that affect your score. Most importantly, we’ll give you some tips to potentially improve your credit, which could save you money and give you more access to lines of credit and loans.

What’s the lowest credit score?

A 300 is the lowest credit score you can have, but this isn’t necessarily the score you start with. You don’t get a credit score until you have a bill reported to the major credit bureaus. If you’re making your payments on time, you may have a fair credit score that starts in the 600s. Typically, a credit score of 300 means you have negative marks on your credit report that are lowering your score.

Your credit score may differ depending on which scoring model you’re looking at. While the most popular scoring model is FICO, there is also VantageScore®. Both scoring models have a total scale of 300 to 850, so the lowest possible credit score is 300 for both models.

Using the table below, you’ll notice that the ranges are slightly different, but they use a scale of 300 to 850.

5 reasons people have low credit scores

As mentioned, it’s a misconception that your credit score starts at zero. In reality, some derogatory marks can lower your credit score to 300. Your credit score comprises different factors like your payment history, debt, credit age, new credit inquiries and mix of credit types. In many cases where a person has a low credit score, they’re taking actions that negatively affect the five main factors that determine a credit score.

Your credit score is a simplified way for lenders to assess risk. Negative marks on your credit may be a red flag to lenders that you are not capable of paying back a loan. Some of the most common reasons people have low credit scores include:

1. Poor payment history: Your payment history makes up 35 percent of your credit score, so missing payments and late payments can lower your score significantly.
2. Collection accounts: When you stop making payments on an account, the lender can sell your debt to a collection agency. This can negatively affect your score for up to seven years.
3. Bankruptcies and foreclosures: Chapter 7 bankruptcy typically stays on your credit report for seven to 10 years, while Chapter 13 bankruptcy typically remains for seven. Foreclosures stay on your credit report for seven years, according to the Consumer Financial Protection Bureau.
4. Too many hard inquiries: Each time you apply for a credit card or other services that run a hard inquiry on your credit report, it can hurt your credit.
5. Errors on your credit report: Sometimes, lenders or other businesses that report to the credit bureaus make mistakes. For example, they may say that you missed a payment. If this happens, you can dispute the errors and potentially help your credit.

Keep in mind that some of the above will hurt your credit more than others.

In many cases where a person has a low credit score, they’re taking actions that negatively affect the five main factors that determine a credit score.

Your credit score is a simplified way for lenders to assess risk. Negative marks on your credit may be a red flag to lenders that you are not capable of paying back a loan. 

6 downsides of having a low credit score

A low credit score can significantly impact your financial life, making it harder to access essential services like affordable housing, utilities and insurance for better interest rates. 

Here are some of the main disadvantages of a poor credit score: 

1. Limited credit options: A low credit score can limit your access to different types of credit. You may be denied credit cards or loans altogether or offered credit with unfavorable terms.
2. Higher interest rates: Lenders charge higher interest rates to people with a low credit score to compensate for the risk that they won’t pay back the loan.
3. Higher insurance premiums: Insurance companies may charge more for auto and home insurance to people with poor credit.
4. Difficulty renting a home: Landlords often check credit history when screening potential tenants. A low credit score can make it harder to secure a rental property.
5. Higher security deposits: Landlords may require larger security deposits from tenants with low credit scores to mitigate potential risks.
6. Job opportunity impact: Some employers may check your credit report, especially for roles that involve handling finances. A low credit score could negatively impact your job prospects.

6 tips to improve your low credit

Achieving the max credit score of 850 is difficult and takes time, but it’s an attainable goal for everyone to improve their low credit. You can improve your low credit with some simple steps and good habits. Even if you have the lowest credit score of 300, over time, you can raise your score to good or even excellent. Here are some steps you can take to start raising your credit score:

1. Pay off collection accounts: One of the first things you can do to work on your score is to pay off your collection accounts. These hurt your credit quite a bit, so paying them off helps. When you do this, be sure to send a pay-for-delete letter to potentially have the negative mark removed from your report.
2. Address errors on your report: If there is an error on your credit report, disputing the error may get it removed from your report and improve your score.
3. Set up automatic payments: Making your payments on time should help improve your credit. Even if you pay just the minimum on your credit cards, on-time payments are beneficial. If you have the funds, you can make additional payments to pay down your debt faster as well.
4. Keep your credit utilization low: Your credit utilization is the amount that you owe compared to your total credit limit. Ideally, you want this below 30 percent. For example, if you have a $1,000 credit limit, you wouldn’t want to owe more than $300.
5. Monitor your credit: A great way to work on your score is to check your credit regularly. This can alert you to errors and allow you to adjust your behaviors if you see your credit dip. This is also a great way to stay motivated as you see your credit begin to improve.
6. Apply for more lines of credit: Yes, applying for too many lines of credit can hurt your score, but you can apply strategically. Having more lines of credit increases your max credit limit and can lower your credit utilization. This also helps with improving your credit age and payment history if you make your payments on time.

Lowest credit score to buy a house

While the lowest credit score to buy a house varies by lender and loan program, 580 is considered the minimum acceptable score for a conventional mortgage. 

It’s important to note that having a higher credit score can qualify you for better interest rates and loan terms. So, even if you meet the minimum credit score requirement, you should still aim for a higher score. 

Lowest credit score to buy a car

In general, a credit score of at least 600 is considered the minimum to qualify for a traditional auto loan. However, the lowest score requirement varies by lender. You may qualify for a subprime auto loan if you need to buy a car with bad credit. These loans typically come with higher interest rates, but they can still be a good option if you need to purchase a car.

Don’t let errors harm your credit

Errors on your credit report can be frustrating and difficult to navigate when you’re dealing with the major credit bureaus. Lexington Law Firm has helped thousands of people repair their credit and has sent out over 221 million credit challenges since 2004. Get your free credit assessment today to see where you currently stand.

Lowest credit score FAQ

Is it possible to have a 250 credit score?

Yes, a credit score can be as low as 250, but only for certain FICO scores. The base FICO score ranges from 300 to 850, but FICO also offers industry-specific scores for auto loans and credit cards that range from 250 to 900. 

Can you get a loan with a 300 credit score?

Getting a loan with a credit score of 300 is possible, albeit challenging. You may have to pay higher interest rates and fees, and your options may be limited to subprime lenders with higher interest rates.

Can your credit score recover from a dropping to 300?

Yes, you can recover a credit score of 300. Consistent on-time payments, reducing credit card balances and disputing any errors on your credit report can all help you build good credit over time.

What is the highest credit score?

The highest possible FICO score is 850, which is considered excellent. According to Experian®, only 1.54 percent of Americans had an 850 FICO score as of 2024. 

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