What Is a Bad Credit Score Range and How to Fix It?

Did you know that the average credit score in America is 711?

Credit bureaus classify this as a ‘good’ score, but lots of people aren’t lucky enough to rank this high. Since credit scores come in such a wide range, you might be wondering what the threshold is for bad, average, and excellent.

So what is considered a bad credit score range exactly? Keep reading for the ultimate guide on credit score numbers and how you can improve a bad score.

What Is a Bad Credit Score Range?

In order to have a credit score that’s labeled as bad, the number would have to be 600 or lower. To have a very poor rating, then your number would have to be below 499.

Getting about 600 should be your first goal, but this will still classify you as a fair borrower, which still isn’t ideal. Getting your number to anything above 680 will open up plenty more opportunities for you as a ‘good’ borrower.

Why Is It Important to Increase a Bad Credit Score?

Credit scores come into play for all kinds of moves you want to make in life. Whether you want to buy a new car, get approved to move into an apartment, or nail a job interview, these people will investigate your credit score.

Anyone who has a bad credit score is viewed as unreliable or unresponsible. In order to prevent getting turned away from important opportunities, you need to prioritize increasing your credit score.

What Can You Do to Lift Yourself Out of the Danger Zone?

The most effective way you can boost your credit score is to work on eliminating your debts. To get the most out of your efforts, you should focus on paying off any loans with the highest interest rates first.

An effortless way you can get a better score is to ask someone you trust to list you as an authorized user on their account. As long as they maintain an impressive credit score, this will benefit your account as well.

If you’re worried that these tricks aren’t enough to help you, the good news is that there are plenty of other credit restoration tips that can work wonders for your score.

Are You Ready to Boost a Low Credit Score?

From meeting loan qualifications to getting approved for a new home and landing a better job, there are plenty of reasons why you should be concerned about boosting your credit score. Now that you’ve learned about the bad credit score range and what you can do to improve your number, you can look forward to a brighter future.

With so many expenses in life, it’s no wonder why money is the top stressor people face. Do you want to know other ways you can make smarter decisions that set you up for success? Take a look at the rest of our blog so you can discover more personal finance articles that can turn you into an expert.

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