Bad Credit Score

What number is considered a bad credit score?

Your credit score is thought of as the gateway to obtaining the most out of your life. When your credit score is higher, you’re not only able to finance just about anything but you have an easier time renting, buying or having an overall better financial situation. Your credit score is important for multiple reasons, which is why it is important that you take care of it from the beginning so you do not have to go through repairing it over time. However, the majority of people with a bad credit score can get great credit when they take the appropriate steps to do so.

What is considered a bad credit score in 2019?

Many wonder what is considered a bad credit score? While there are poor and less than great scores, someone with a bad score would fall in numbers below these two sections. Anything from a 300 to a 549 can be considered a bad credit score, while just above that is an okay one. Depending on where you are looking to obtain credit from, many lenders will not work with someone that has a bad credit score, as this shows you’re not trustworthy or reliable enough to pay back on the loan.

A bad credit score is not what anyone wants but when you are struggling to stay on top of the debtors, you have to let your credit fall below the less than perfect spot. It can go up again. Even though it is down low, it does not mean that it can never go back up again. Working on a bad credit score will help it become a good credit score in the end. It is recommended that someone with bad credit does have it repaired. This can be done in due time with smart financial planning and strong money management skills.

Negative effects of having a bad credit score

Many parts of your life have to do with your credit score. When you are going through life and you need an auto loan, a mortgage for a home, credit cards or advances for purchases that you’d like to get before your paycheck comes in and so many other choices out there, you’re not going to be able to get them with bad credit. A bad credit score is never a good thing. Here’s why this is not something you want to deal with.

  • Are not able to obtain a mortgage or a home loan that helps you repair things on your home or purchase items that are needed for the home.
  • Auto loans are much harder to get and if you have bad credit, some places may work with you but you will have an extremely high interest rate to pay on the vehicle.
  • Credit cards are not given to those that do not have good credit, as this is showing them that they should not provide someone that is not trustworthy enough to use them.
  • Places may not rent to you if you have a very bad credit score because it shows that you do not pay your bills on time.
  • You may have a hard time getting a phone line open for cellular services or even an electricity bill in your name when you have past debts that have not been paid of like this one.
  • If you do obtain loans through lenders, the interest rates on those loans are going to be astronomically high. You will have to pay much more in interest than someone that does have a good credit score.
  • You will have higher insurance premiums when it shows that you have a lower credit rating. This just shows that you are in a high risk area and you do not value paying your bills.
  • If you own your own business, obtaining a business loan is going to be a challenge, as this is going to be something that you will find you struggle with. No one lends money, especially a large sum, to someone that shows they were unable to pay their bills previously.
  • Some higher management and financial jobs will look at your credit rating. If it is not good, they may not hire you for the job because of it. It shows that you might not know as much about the position as they would have liked.
  • Many with bad credit scores feel weighed down by the debt that is keeping their scores so low. This can cause not only depression in a person but martial problems for a couple that are struggling with debt.

Having a high risk or bad credit score does not have to be forever. Those that work towards building their credit can greatly help themselves when it comes to getting back on track and being able to be a trustworthy borrower once again.

Where are you credit score wise?

When compared to others that have higher credit scores, you fall at the very bottom of the list. A bad credit score is one that has to go through extreme improvements in order to get back up to the higher brackets. Those that have this credit score seem to have a harder time working their way up, as this can be time consuming but it is something that should be done in order for the person to have financial healing. A low, low credit score can be damaging for a person when they are trying to get out of debt and live a fuller, happier life.

Credit Score Rating
750 – 850 Excellent
700 – 749 Good
650 – 699 Fair
550 – 649 Poor
549 and below Bad

Increase your bad credit score with these tips

In order to increase your bad credit score, there are a few things you can do to help it grow. Keep in mind that it will not happen overnight but giving it a few months is ideal when you stick with it.

  • Pay off as much debt as you can, work through it by targeting specific payments to make first.
  • Always have on time payments with every bill that you own to keep them on track.
  • Work with old debtors to settle for a lesser amount and have them take the debts off of your account.
  • Make a budget and stick with it to pay off the debts and get back on track!
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