Is A 300 to 309 Credit Score Bad? Or Good? (2020)
By Mark B. Huntley, Esq.
Last Updated 2/12/2020
Summary: While a 300 credit score to 309, are considered bad credit, that does not mean that there are no opportunities for you to build your credit or even qualify for a loan.
Credit scores are used by lenders to help them estimate the possibility of the borrower not paying them back.
Lenders will use all the information that is available to calculate their risk, which will determine the interest rates you are offered.
However, where the line of good credit scores begins and ends fluctuates higher or lower based on the type of loan you are considering.
Quick Article Guide
What can I do with a 300 to 309 credit score?
Credit scores range between 300 and 850, with 300 being the lowest and 850 being the highest.
A 300 credit score is considered bad credit and usually indicates that your credit report probably shows some; late payments, charge-offs, bankruptcy, high utilization ratios, collections, and too many hard inquiries.
If you have a credit score around 301, 303, 305, or 307, then you can be sure you really have nowhere to go but up!With that in mind, to answer, ‘Is A 300 to 309 Credit Score Good? Or Bad?’ for a particular loan type or how to improve it, we will address each individually.
Just because you have a bad credit score does not mean that you will not qualify for a loan. It just means that your options will be much more limited and you’ll pay a higher interest rate than someone with a better credit score.
The great thing about a low credit score is how quickly you can improve it by making just a little bit of effort.
Disclaimer: Credit Score Refers to "FICO Score"
When we say "credit score" in this article, we mean your FICO score. If you have a free credit score (i.e. VantageScore from Credit Karma or Sesame), that does not likely equal your FICO. For example, a 305 VantageScore could be a FICO score of... 301, 416, 507? Who knows? 90% of Lenders use FICO scores, not the free VantageScore. You can get your FICO score here.
Can I Get A Car Loan With A Credit Score Of 300 To 309?
Auto loan rates by credit score are divided into five categories, with Super Prime being the highest and deep sub-prime the lowest.
This is where credit score terminology gets a bit confusing.
A 302, 304, 306, or 308 credit score can be referred to correctly by calling your score bad credit, poor credit, or deep sub-prime credit.
Referring to your credit score by any of these three categories would be technically correct.
Bad credit, poor credit and deep sub-prime credit are three names for the same credit score category.
BUT, with auto loans, they don’t use the bad/excellent categories, but lenders break your credit score into the Prime categories.
The reason auto lenders use the prime categories is that regardless of your credit score if you have a job, someone will probably give you a car loan, thus more categories to be able to distribute the lender’s risk better.
Auto Loan Credit Categories
Credit Score Range
780 - 850
660 - 779
Non - Prime
600 - 659
Sub - Prime
500 - 599
Deep Sub - Prime
300 - 499
Auto loans are considered secured loans because you use the actual vehicle as collateral for the loan.
This allows lenders to offer to finance to people with credit scores that wouldn’t otherwise qualify for an unsecured loan based on their FICO score.
Once your credit score starts nearing 500 and below, your auto loan options will significantly decrease with a deep sub-prime credit score.
But this doesn’t mean that all is lost because many independent dealerships will offer inhouse financing, and we even have a few lenders that may still give you car financing.
Auto Loans By Credit Score
Rates By Credit Score
The APR rates charged for a car loan with a deep sub-prime score are cripplingly high, and we discuss many alternative options in our articles on how to get an auto loan with a deep sub-prime credit score.
There are many excellent auto loan lender options that you can spend hundreds of hours reviewing…Or piggyback on our research and save yourself some time by reading our article on the Best Auto Loan Companies of 2020.
How To Get A Personal Loan With A 300 - 309 Credit Score
Personal loans are broken into four credit score categories, and to keep things confusing, they usually refer to them as excellent, good, fair, or bad/poor.
Personal Loan Credit Categories
Credit Score Range
760 - 850
690 - 759
580 - 689
Bad or Poor
300 - 579
Personal loans are the Swiss army knife of loans, capable of being accessed for an emergency, to consolidate debt, or even start a business.
They can be used for a variety of reasons, the list below is just some of the more common uses for a personal loan:
Most personal loans are unsecured by any collateral and have lower interest rates than credit cards.
Many people will look to a personal loan to consolidate their credit card debts at a much lower rate than their credit cards APR to save thousands of dollars.Even with a , there are still some personal loan options, albeit, at interest rates between 35% and 155%.
Personal loans can range from $1,000 to $100,000 with payment terms as short as six months and as long as seven years.
As your credit score falls to fair and lower, the number of lenders willing to risk giving an unsecured personal loan dwindles.
However, even with a bad credit score you can still qualify for personal loans as large as $35,000 but it will cost you.
People with a 300 credit score may pay rates as high as 35% to 155%. It goes without saying that you should avoid high interest personal loans if at all possible.
Personal Loans By Credit Score
Rates By Credit Score
While these are personal loans, they are usually also marketed as ‘installment loans,’ which have higher interest rates and payment terms between 6 months to 7 years.
A personal loan with an APR rate of 100% will double in value each year if you have to take out a bad credit loan, take the smallest amount out possible for the shortest length of time.Check out our review of the best personal loan companies of 2020.
Best Credit Cards For A 300 To 309 Credit Score
If your credit score is around 300 then you will have a hard time getting a traditional unsecured credit card.
To qualify for a traditional unsecured credit card, you will need a credit score around 600.
Credit Card Credit Categories
Credit Score Range
750 - 850
660 - 749
600 - 659
Bad or Poor
300 - 599
If you want a credit card that you can use anywhere, you should consider getting a secured credit card.
There is no credit check with a secured card, and you select the credit limit of the card by depositing the amount you want with the credit card company.
They hold onto your deposit for a period or indefinitely, and in return, you are given a normal-looking credit card with a helpful Visa or MasterCard logo on it.
No one will know that it is a secured credit card, and you will begin to build credit to improve your credit score.
Credit Cards By Credit Score
Best By Credit Score
Can I Get A Home Mortgage With a 300 to 309 Credit Score?
Generally speaking, you will need at least a 580 credit score to qualify for a home mortgage loan.
This is because most mortgages are backed by Fannie Mae or Freddy Mac and if you credit score is too low they won't be able to package them for investment.
Remember the mortgage crisis in the 2000's?
That was partially caused because they accepted people with much lower credit scores and didn't verify important things like applicants income.
HOME MORTGAGE LOAN TYPE
MINIMUM CREDIT SCORE REQUIRED
However, with a credit score around 302, 304, 306, or 308, you may qualify for a personal installment loan if you have a stable job history with verifiable income and a low debt-to-income ratio.
With interest rates so low right now, it makes sense to be looking to get a home mortgage even with a 301, 303, 305, or 307 credit score.
Home APR rates are so low right now that over 50 million people in the U.S. stand to save tens of thousands of dollars if they were to refinance their home mortgage.
Best Home Mortgage Loan Rates With A 300 - 309 Credit Score
Mortgage Loans By Credit Score
Rates By Credit Score
300 Credit Score Home Mortgage Loan
301 Credit Score Home Mortgage Loan
302 Credit Score Home Mortgage Loan
303 Credit Score Home Mortgage Loan
304 Credit Score Home Mortgage Loan
305 Credit Score Home Mortgage Loan
306 Credit Score Home Mortgage Loan
307 Credit Score Home Mortgage Loan
308 Credit Score Home Mortgage Loan
309 Credit Score Home Mortgage Loan
How To Improve My Credit Score?
I improved my credit score by almost 200 points in 90 days by purchasing the following credit-building tools.
These tools will increase the key categories that will have the most significant effect on your credit history categories.
#1: Apply for a Fingerhut Account
The first step I took was to apply for a Fingerhut Online Store Credit Card.
Department store credit cards are an easy way to increase your revolving credit which accounts for 35% of your FICO credit score.
Fingerhut credit cards are issued by WebBank and are known for giving unsecured credit to people with notoriously bad credit.
Your Fingerhut account won’t include an actual credit card because you can only use the credit to purchase items from their website.
When I signed up for Fingerhut, I had a credit score of around 550, and they gave me a $1,000 credit.
I have documented just about 100 points of credit score increase just from my Fingerhut account.
One year later and I have a $2,900 credit limit, and all I do is make the minimum monthly payment, and they just keep giving me more credit.
This is important because the more credit you have and do not use, the higher your credit score will increase.
#2: Become an Authorized User
The second step I took was to be added as an authorized user to some of my family’s credit cards.
You need to be careful when choosing which family members to ask because by being added as an authorized user, your credit history inherits the credit card credit history.
The credit card you are added to must have a 100% positive credit history with no late payments or over the limit uses.
Many people report that they have a hard time finding someone with a good credit card to be added as an authorized user.
No problem, you can legally purchase an authorized user Tradeline online.
To learn more, visit our Tradeline Supply Company Review.
Increase Your Credit by 100+ Points
In a recent study at Credit Knocks, we found that *48% of clients who used a credit repair company got a credit score increase of 100+ points.
Consultation is quick, easy, and free.