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What s the Lowest Credit Score I Can Have and Still Get a Loan?
One of the biggest hurdles in getting a loan approval is your credit score. Often the lender pulling (i.e. requesting and reviewing) your credit score from a major credit bureau is the first step in any lending process.
Naturally, this leads to the question…
“Is my credit score good enough?”
This is usually the major weighing question on most consumers’ minds as they apply for a new credit card, buy a car, apply for a new mortgage. or attempt to refinance their current mortgage creating a lot of unnecessary anxiety.
Let’s see if we can relieve some of your stress.
How Low Can You Go?
Most credit scoring models range from 300 to 850.
Here’s a little stress relief right off the bat it’s really, really hard to hit the bottom (i.e. 300) on this one. It’s kind of like the ACT or SAT; you get some points just for getting your name right. In fact, you are more likely to have no credit score at all, usually because you have no credit history, than to have a 300 credit score.
Relief… you’re probably not at the bottom of the barrel. Only 7 percent of the total US population is between 350 and 549. Just slightly above that mark and you are usually in the hunt for getting a loan.
Qualifying for Credit Cards
Credit cards are usually the easiest “loans” to qualify for regardless of your credit score. However, like all credit lending, the worse your credit score is, the higher your interest rate will be on your card(s).
With credit cards, you can probably get a reasonable interest rate and credit limit with a credit score above 650. Below 650 and you will need to look into a secured credit card. meaning it is “secured” by your cash sort of like a debit card.
If you’re looking for a credit card to give you rewards or cash back, then you need to get that credit score above 700, preferably 725+.
Credit Card Information
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