What Is a Bad Credit Score? How Can I Build It?

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What is a bad credit score?
- 720 and above: Excellent credit
- 690-719: Good credit
- 630-689: Fair credit
- 300-629: Bad credit
What is a bad FICO score?
- Below 580: poor.
- 580 to 669: fair.
- 670 to 739: good.
- 740 to 799: very good.
- 800 and above: exceptional.
What is a bad VantageScore?
- 300 to 600: subprime.
- 601 to 660: near prime.
- 661 to 780: prime.
- 781 to 850: superprime.
What causes a bad credit score?
- Late or missed payments.
- Using too much of your credit limit.
- Filing for bankruptcy.
- Identity theft or fraud.
How to improve bad credit
- A secured credit card. You make an initial cash deposit, which typically becomes your credit limit. You then use the card like a regular credit card, being careful to pay your bill on time and keep your balance low.
- Credit-builder loans. A loan amount is released to you after you pay off the loan. Make sure the lender — typically a credit union or community bank — will report your payments to the three major credit-reporting agencies.
- Becoming an authorized user. If someone who has a long record of on-time payment and low credit utilization is willing to add you to a credit card, your credit could benefit.

What does a bad credit score mean for you?
- You won’t qualify for the best credit cards, for example, or personal loans at single-digit interest rates.
- You’ll face subprime rates to finance a car or a house.
- You may also have to pay more for auto insurance, depending on the state you live in, and may have to pay more for home insurance.
- You may be stuck paying utility deposits that people with higher credit scores get to skip.