What Is a Bad Credit Score?

A bad credit score is a FICO® Score below 580 or a VantageScore® below 600. Lenders may have different ideas of what a bad credit score is when they’re reviewing a loan application. The credit scoring models separate credit scores into ranges so you can gauge where you stand and take action to improve your credit.

FICO® Score 8 Ranges

• 300 – 579: Poor
• 580 – 669: Fair
• 670 – 739: Good
• 740 – 799: Very good
• 800 – 850: Exceptional

VantageScore 3.0 Ranges

• 300 – 499: Very poor
• 500 – 600: Poor
• 601 – 660: Fair
• 661 – 780: Good
• 781 – 850: Excellent

Consequences of a Bad Credit Score

A low credit score can make it more difficult to get approved for a loan or credit card. If you do get approved, you’ll be less likely to qualify for the lowest rates and best terms. A bad credit score can lead to these roadblocks:

• Potential rejection when applying for credit
• Difficulty getting a rental application approved
• Required security deposits
• Trouble getting a new cellphone or phone contract
• Pause during an employment background check
• Higher insurance premiums in some states

How to Improve a Bad Credit Score

No matter where your current credit score falls, you can boost your financial health starting now. Try these short- and long-term strategies to take control of your credit and improve your scores.

1. Check Your Credit Score

First, check your credit score for free to see where you stand. Your FICO® Score is most impacted by the following factors:

• Payment history (35%)
• Amounts owed (30%)
• Length of credit history (15%)
• Credit mix (10%)
• New credit (10%)

It’s also important to check your credit report for any inaccuracies. You have the right to dispute items on your credit report, including inaccurate personal information or accounts fraudulently opened in your name.

2. Pay Your Bills on Time

Because payment history is the biggest contributor to your score, take steps to ensure you never pay late:

• Set up autopay for recurring bills
• Change your payment due date
• Set calendar reminders
• Ask for help if you’re concerned about missing a payment

3. Pay Down Debt

Work on paying down revolving debt, such as credit card debt. Ideally, you’ll pay off your credit card bill in full at the end of every month. But if you can’t, and you’re currently carrying a balance, bring down that debt with these approaches:

• Debt avalanche method
• Debt snowball method
• Balance transfer credit card

4. Limit New Credit Inquiries

If you’re focused on increasing your score, consider limiting or pausing new applications for credit. A hard inquiry happens when a lender checks your credit to evaluate you for a financial product. It will appear on your credit report and may knock a few points off your credit score.

5. Boost Your Credit

Signing up for Experian Boost® for free can help you strengthen credit using your existing financial history. Experian will search your bank account data for cellphone, utility, rent, insurance, and popular streaming service payments, and you can choose which accounts to add to your Experian credit file.

6. Get Help Building Credit

If you’re having trouble getting approved for a credit card or loan on your own, you can build credit history with the help of others or with a secured credit card or credit-builder loan. Here’s how:

• Become an authorized user on someone else’s account
• Work with a cosigner who has good credit
• Apply for a secured credit card
• Apply for a credit-builder loan

How Long Does It Take to Improve Your Credit Score?

There’s no hard-and-fast rule that states when you can expect to see credit score improvements. But if you stick with responsible credit behavior and add positive payment history to your credit report, you can start to see improvements in a month. Large increases can take several months or more.

How to Maintain a Good Credit Score

Once you’ve done the hard work to fix a bad credit score, keeping up the momentum is the next step. To get the best access to low rates and favorable terms on a range of financial products, aim for good credit or better. A good FICO® Score ranges from 670 to 739, while a very good score is 740 to 799.

Here’s how to keep your credit strong:

• Pay all bills on time
• Maintain low balances on credit cards
• Only seek out new credit when necessary
• Keep your oldest credit card account open
• Make a budget that helps you spend less than you earn