Written by: Mike Randall
Edited by: Lillian Guevara-Castro
No one wants a bad credit score. We all know it affects what we pay for insurance and our ability to borrow money, land a job, or rent a house. Avoiding a bad credit score is just the smart thing to do.
But what’s considered a bad credit score? Is there a magic number that is seen as a risk? Actually, there is — but it’s a little complicated. In the following article, we’ll jump into this complex subject and offer our take on credit scoring and provide information on where you can turn to help repair your score.
Anything Below 660, Theoretically Speaking.
Everyone who has ever gotten a loan, charged something on a credit card, or paid a bill has a credit score. The scoring system the major credit rating agencies use is called the FICO system, and it has a range of between 300 and 850 points.
Using this system, a score of 850 is the best you can be assigned.
Depending on the credit rating agency you ask and what region of the country you’re in, the average credit score in the U.S. is between 660 and 700. Theoretically, this means a credit score below 660 is considered a bad credit score.
However, FICO itself considers a score of between 625 and 659 to be a “standard” rating. The score range they reserve for “subprime” is 624 and below.
If your credit score is above 700, you can be pretty sure banks and lenders will see you positively. Below 650 points or so and it’s a gamble.
If you are one of those unfortunate enough to have a score in the subprime category, there are things you can do to improve your credit score.
Lexington Law Credit Repair Can Help
By paying your bills when they’re due, you receive a positive weighting on your credit score. The more you meet your obligations and pay your debts, the better your credit score is likely to be. But if you should fall behind in your payments or default on a loan, your credit score will take a hit. And it doesn’t take too many of these hits to bring your credit score crashing down to earth.
A credit repair service can remove negative items from your credit reports. Lexington Law’s past clients have seen an average of 10.2 negative items removed from their credit reports within four months. It’s definitely worth it if you’ve got some things on your report dragging your score down.
- Most results of any credit repair law firm
- Lexington Law Firm clients have seen more than 81 million removals from their credit reports since 2004
- Get started today with a free online credit report consultation
- Cancel anytime
- See official site, terms, and details.
| Better Business Bureau | In Business Since | Monthly Cost | Reputation Score |
|---|---|---|---|
| See BBB Listing | 2004 | $99.95+ | 8/10 |
Consultations are free and there’s never any obligation. Lexington Law also has a good reputation, sporting 4.5 stars with Consumer Affairs.
A Secured Credit Card is Another Good Option
A secured credit card can actually help boost your score when you use it responsibly. By responsibly, we mean always paying your monthly bills on time, never missing a payment, and keeping your credit utilization ratio low. Here are the top-rated secured cards for folks looking to rebuild their credit as reviewed by our experts:
- Don’t let a low FICO score stop you from applying – we approve applications others may not.
- You don’t need good credit to apply.
- Just complete the short application and receive a response in 60 seconds.
- When you need assistance our award-winning US-based Customer Service agents are there to help.
- FICO scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any PREMIER Bankcard® product.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 4 minutes | See Provider Website | Yes | 9.0/10 |
- You don’t need good credit to apply.
- We help people with bad credit, every day.
- Just complete the short application and receive a response in 60 seconds.
- You can build or rebuild your credit: apply for a PREMIER Bankcard credit card, keep your balance low, and pay all your monthly bills on time.
- Don’t let a low FICO score stop you from applying – we approve applications others may not.
- FICO scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any PREMIER Bankcard® product.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 4 minutes | See Provider Website | Yes | 9.0/10 |
- Earn 3% Cash Back Rewards* on Gas, Groceries and Utility Bill Payments
- Earn 1% Cash Back Rewards* on all other eligible purchases
- Up to $1,000 credit limit subject to credit approval
- Prequalify** without affecting your credit score
- No security deposit
- Free access to your VantageScore 4.0 score from TransUnion®†
*See Program Terms for important information about the cash back rewards program.
** Prequalify means that you authorize us to make a soft inquiry (that will not affect your credit) to create an offer. If you accept an offer a hard inquiry will be made. Final approval is not guaranteed if you do not meet all applicable criteria (including adequate proof of ability to repay). Income verification through access to your bank account information may be required.
† Your credit score will be available in your online account starting 60 days after your account is opened. (Registration required.) The free VantageScore 4.0 credit score provided by TransUnion® is for educational purposes only. This score may not be used by The Bank of Missouri (the issuer of this card) or other creditors to make credit decisions.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 7 minutes | 29.99% or 36% Fixed | Yes | 8.0/10 |
A secured credit card works the same as an unsecured card — the only difference is that it requires a deposit to secure your line of credit.
Remember, nothing is permanent. Our credit scores are being recalculated all the time. With a little help, you can quickly improve yours. And whether you’re carrying a secured or unsecured credit card, paying your monthly bill on time is one of the most important factors when it comes to determining your credit score.
Photo source: bobrutledge.com.
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