What Is the Lowest Credit Score?
, by Rob Kaufman
Many people are curious as to what the lowest possible credit score is. They also wonder: if my score is in the range of the lowest score, should I kiss any kind of loan or credit approval goodbye?
For now, we're going to focus on FICO® Scores because these are the scores used by 90% of top lenders. The lowest possible FICO Score you can likely have is 300 (although industry-specific FICO Scores can be as low as 250); you typically need more than double that number to get approved for some types of loans.
What's a low credit score range?
"Base" FICO Scores (FICO Score 8) range from 300-850, while industry-specific FICO Scores range from 250-900.
For a better idea of credit score ranges and what they represent, here is a summarized analysis of FICO Score 8 credit scores:
579 and lower :
Score : Poor. Consumers who fall within this range are considered a high credit risk and may be rejected. Many who fall within this range must often put down a deposit or pay a fee to obtain a credit card or home utility services.
Risk : High. About 59% of consumers with a credit score of 579 and lower are likely to become delinquent.
580 to 669 :
Score : Fair. Since this score range is below the national average, these borrowers will have a more difficult time getting credit and, if they are approved, will more likely than not end up paying a higher interest rate than those with better credit.
Risk : Medium-High. About 27% of consumers with a credit score of 580-669 are likely to become delinquent.
670 to 739 :
Score : Good. A "median" range, this score identifies a borrower as "acceptable" which means he or she might not get as low an interest rate as those in a higher credit score range.
Risk : Medium. About 8% of consumers with a credit score of 670-739 are likely to become delinquent.
740 to 799 :
Score : Very Good. This score range is also above the national average and borrowers in this range are at a great advantage in both the likelihood of getting credit approval and being offered lower interest rates.
Risk : Low. About 2% of consumers with a credit score of 740-799 are likely to become delinquent.
800 +
Score : Exceptional. This credit score range is way above the national average and borrowers within this range will most likely not have a problem getting credit.
Risk : Low. About 1% of consumers with a credit score of 800+ are likely to become delinquent.
So back to the question: Does a FICO Score in the lowest range (less than 580) mean you can't get credit?
It all depends on the individual lenders and what they consider an acceptable level of risk. They may take someone with a low score and approve them for credit but charge a higher interest rate on unpaid balances.
They might also approve someone with a low score but only for a minimal amount - reducing their risk while also giving you the opportunity to prove yourself a good borrower. Check out this loan savings calculator to see how much a high FICO Score can save you money.
What is considered bad credit by one lender may be acceptable to another. If you're looking to improve your credit score don't give up... no matter how low your score.
FAQs
What is the lowest credit score possible?
The lowest possible credit score in most scoring models is 300. However, it is rare for someone to have a score this low.
Can a low credit score be recovered?
Yes, improving a low credit score is possible by making all payments on time, reducing your credit card balances, avoiding new hard inquiries and monitoring your credit report for errors.
How long does improving a low credit score take?
Rebuilding your credit can take months or even years, depending on individual circumstances, the severity of the issues and how consistent you are with better financial habits. However, while the timeline varies from person to person, it’s important to remember it’s not impossible. Even small steps can make a difference if you stay consistent.
