One crucial figure lenders consider your trustworthiness is your credit score. A better score indicates that you are considered less dangerous and more likely to be accepted for credit cards and loans at the best rates. But from what lowest credit score you may have? And how does so low of a score reflect your financial situation?
The Lowest FICO Score is 300
Vantage Score and FICO score are the most often utilized credit rating systems. Within its credit score range of 300–850, FICO ratings have the lowest possible number—300. The range for VantageScores also is 300–850.
In terms of credit ratings from most lenders' main scoring systems, therefore, 300 is the absolute rock bottom. But exactly how poor a 300 credit score is?
What a 300 Credit Score Means
Lender guidelines define a 300 credit score as "poor," or even "bad." Someone with this low score has either seriously ruined their credit history or committed several significant credit errors. These are but a few possible causes for a 300 FICO score:
- Bankruptcy shown on your credit record
- Several narratives gathered in a collection
- Legal actions or creditor pay-off requests
- High sums owing throughout many accounts
- a lengthy past of late payments and delinquencies
Given a score of 300, getting authorized for any new credit or loans is difficult. Lenders see candidates with these low marks as an unacceptable risk. Applications from someone with a 300 score may be denied even by subprime lenders that target exclusively those with bad credit.
The Consequences of a Low Credit Score
In many respects, including your financial life, having a 300 credit score might seriously impede you.
- Problems getting a credit card and loan authorized
- Should your approval call for paying additional fees and higher interest rates,
- Having low credit causes you to be rejected for rental property.
- Utility security deposit payments call for
- Denied mobile phone contracts or insurance coverage
- Not being able to get a job if companies look at credit—common for positions in finance.
As you can see, a poor credit score—such as 300—may make it difficult for everything from paying deposits on your electricity and water to obtaining a mortgage. Your final spend for items like interest and fees will be greater depending on your score. Those with bad credit ratings pay more in a vicious loop that maintains them that way.
How to Rebuild From a 300 Credit Score
Although the fight is tough, one may recover from a three-hundred credit score. Though it will take time and commitment, here are some pointers on restoring your credit from the basement:
- Review your credit records and contest any mistakes you discover
- arrange payments for any accounts under the collection.
- Get exacting about paying on time moving forward.
- Pay your maxed-out credit cards to reduce your credit use.
- Think about consumer credit counseling programs or credit restoration companies.
- After clearing delinquencies, apply for a secured credit card.
- Have someone add you as an approved user on their excellent credit card.
- Be persistent and patient; it takes one to two years to get from poor to fair credit.
Repair takes more time the lowers your credit score. Every good action, however, helps raise your score gradually. Key are forming solid money habits and being tenacious.
Although a 300 credit score is bad, with careful credit activity one may leave that zone behind. Though one that is worth fighting to get your financial footing, obtaining the lowest score indicates an uphill fight.
Call on (888) 803-7889 to get improve your credit score now!