The bad news about your FICO® Score of 300 is that it's well below the average credit score of 714. The good news is that there's plenty of opportunity to increase your score. 100% of consumers have FICO® Scores higher than 300.
It's better to keep your accounts open and not use them or use them and pay them off as quickly as possible if your goal is to improve your credit score. While it will be fairly difficult to get new credit while your credit score is under 500, it isn't impossible.
What Does a 300 Credit Score Get You? Do You Qualify? Note: It may be possible to qualify for an unsecured credit card, personal loan, auto loan or home loan in rare cases, but the terms are unlikely to be worthwhile. If you apply for the average offer, you're more likely to be rejected than approved.
A FICO® Score of 650 places you within a population of consumers whose credit may be seen as Fair. Your 650 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.
It will take a few months to get to 750 if your score is currently somewhere between 650 and 700. However, if you have a credit score of less than 650, it will take more time to improve the score.
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
In some countries that use other models, like Canada, people could have a score of 900. The current scoring models in the U.S. have a maximum of 850. And having a credit score of 850 is rare. According to the credit reporting agency Experian, only about 1.3% of Americans have a perfect credit score, as of 2021.
VantageScore and FICO scores range from 300 to 850, making 300 the lowest credit score possible. While credit scores as low as 300 are possible, most consumers have scores above 700. A low credit score will prevent you from borrowing money or even renting an apartment.
Most landlords seek credit scores of 650 or higher as a sign of tenant responsibility. Applicants with scores below 600 may face additional hurdles in securing approval. Exact minimum thresholds vary widely depending on factors like the type of apartment, current occupancy rates, and the landlord's discretion.
You can survive with a bad credit score using cash or debit cards instead of credit cards. This will help you avoid paying interest and penalties associated with late payments. Pay for things upfront, and only buy something if you can afford it. Don't worry about missing out on special offers on credit cards.
The answer depends on the type of debt. In most cases, these negative marks will drop off your report after seven years, but certain debts can stick around for up to 10 years — or even longer. The good news? These marks have less impact on your credit score as time passes, and eventually, they'll disappear altogether.
If your credit falls within the 300 to 400 range, you'd likely find approvals hard to come by. But here's the good news: With some persistence and a focus on building healthy credit habits, you can bump those scores up to the fair, good and even excellent range.
You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with a score as low as 500.
According to Car and Driver, “Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.”
Therefore, 7,000 is 10 times greater than 700.
It may take a few months to recover from a hard inquiry, a few months (or years) to recover from a 30-day late payment, and much longer to recover from a 90-day late payment or other major negative mark (such as a foreclosure).