What’s Considered a Bad Credit Score?

What’s Considered a Bad Credit Score?
GUIDE
Mike Randall
By: Mike Randall
Updated: June 3, 2020
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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.

  • Free consultation: 1-855-200-2394
  • Most results of any credit repair law firm
  • Clients saw over 9 million negative items removed from their credit reports in 2016
  • More than 500,000 credit repair clients helped since 2004
  • Cancel anytime
  • Click here for sign-up form, terms, and details.
★★★★★

4.9

Overall Rating

Better Business Bureau In Business Since Monthly Cost Reputation Score
See BBB Listing 2004 $89.95 10/10

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:

  • Easy application! Get a credit decision in seconds.
  • Build your credit history – Fingerhut reports to all 3 major credit bureaus
  • Use your line of credit to shop thousands of items from great brands like Samsung, KitchenAid, and DeWalt
  • Not an access card
  • Click here for official site, terms, and details.
★★★★★

4.8

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
5 Minutes See issuer website Yes 9.0/10
  • Checking Account Required
  • Fast and easy application process; response provided in seconds
  • A genuine Visa credit card accepted by merchants nationwide across the USA and online
  • Manageable monthly payments
  • $300 credit limit (subject to available credit)
  • Reports monthly to all three major credit bureaus
  • Click here for official site, terms, and details.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 Minutes See terms Yes 8.5/10
  • Checking Account Required
  • Reporting monthly to all three major credit reporting agencies
  • Perfect credit not required for approval; we may approve you when others won’t
  • Easy and secure online application
  • $300 credit limit (subject to available credit)
  • The First Access Visa Card is issued by The Bank of Missouri pursuant to a license from Visa U.S.A. Inc.
  • Click here for official site, terms, and details.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
10 Minutes See Terms 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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