What is the lowest credit score possible?
Generally, credit scores range from 300 to 850, making 300 the lowest possible credit score. But it’s important to note that you typically have more than one credit score, and they can differ depending on who calculated them and when.
What you’ll learn:
- Credit-scoring companies, FICO® and VantageScore®, have guidance based on their lowest score classifications.
- Having a low credit score can make it harder to access credit and may have other disadvantages, like higher interest rates.
- Missed payments, late payments, bankruptcies, reporting errors, fraud and defaults can lead to lower credit scores.
- Using credit responsibly by paying statements on time every month and avoiding maxing out your credit limits could help you improve your credit scores.
The lowest credit score ranges for FICO and VantageScore
FICO and VantageScore classify their credit score ranges differently. But both say people with credit scores in their lowest ranges could have trouble being approved for loans.
The lowest credit score range for FICO is 300-579, and it labels these scores as “Poor.” VantageScore uses the term “Subprime” for its lowest range, which includes scores from 300 to 600.
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Ultimately, what might be considered high or low scores is up to individual lenders.
What causes a low credit score?
Several factors can result in lower credit scores, including:
- Inconsistent payment history: FICO says payment history accounts for 35% of its credit scores. That makes it the most important scoring factor—and reveals why missed payments can lower scores.
- Short credit history: FICO says the length of your credit history accounts for 15% of its scores. So having little or no credit history or a thin credit file can cause lower scores or no score at all.
- Reporting errors: Mistakes on your credit reports, whether they’re honest errors or a result of fraud, can drag scores down. Monitoring your credit reports can help you identify errors and work with bureaus to remove them.
- Bankruptcies, defaults or foreclosures: Public information like bankruptcies can appear on credit reports for up to 10 years. Similarly, defaulted loans and foreclosures could lower credit scores.
What are the disadvantages of having a low credit score?
Everyone’s financial situation is different, but here are some of the ways a low credit score can affect you.
- Limited credit access: Lenders typically consider credit scores when they review loan or credit card applications. Lower credit scores represent risk, which could limit options.
- Less favorable lending terms: When approved for loans, people with low credit scores might be offered lower limits, have to pay higher rates or have less access to other benefits.
- Limited housing and career opportunities: Some landlords or employers may run credit checks during the rental application or hiring process. Each state has different guidelines around how your credit information can be viewed and used, but low credit scores can restrict your ability to rent an apartment or even get certain jobs.
- Higher insurance premiums: In many states, home and car insurance providers can check your credit during the application process. A lower credit score could be considered a risk factor and may result in higher monthly premiums.
How to improve a low credit score
A low credit score doesn’t have to be permanent. But improving your score takes time and responsible use, including:
- Making timely payments on existing debt: Creating a calendar reminder or setting up automatic payments each month can help you avoid missing payments.
- Avoiding maxing out your card: Credit utilization measures how much credit you’re using compared to the amount available to you. The Consumer Financial Protection Bureau (CFPB) recommends using less than 30% of all the credit you have available.
- Keeping new credit applications to a minimum: The CFPB also says you should “only apply for credit you need.” Seeing whether you’re pre-approved before you apply can help you avoid unnecessary credit checks.
As you build credit, you can monitor your credit reports to track your progress. You can request free copies of your credit reports at AnnualCreditReport.com. You can also use CreditWise from Capital One. It’s free, even if you’re not a Capital One cardholder, and using it won’t affect your credit scores.
Low credit scores FAQ
Find out more about credit scores with the answers to these frequently asked questions.
Do you start with the lowest credit score possible?
When you establish credit, the scores you start with will depend on your credit habits. If you use your credit responsibly, you typically won’t start with the lowest credit score possible.
Can you have a 250 credit score?
While FICO scores generally fall between 300 and 850, industry-specific FICO scores range from 250 to 900. Auto lenders and card issuers could use industry scores as risk assessments specific to the type of loan.
Is there a 0 credit score?
If someone has no credit score, it simply means insufficient information exists to compute an actual score, not that the credit score is zero.
Key takeaways: Lowest credit score
Generally, the lowest possible credit score is 300. Having low credit scores can make it difficult to access credit, and loans may be offered with higher interest rates. But it’s possible to build credit with time and responsible use. And issuers like Capital One even have credit cards for people trying to build credit.
