What’s the Lowest Possible Credit Score? - Know this

Dave Ramsey claims that he has a zero credit score, which means he avoids credit together. But is it possible to have a zero credit score?

According to FICO spokesman Barry Paperno, the answer is "no." The FICO credit score ranges from 300-850, so the lowest possible score is 300.

Lowest credit score is caused by you not having a positive credit history at all. For example, Main Street highlights a man who has accumulated nearly $ 300k of debt because of a series of bad investments, suffered a foreclosure, went on a debt management plan, and finally filed for bankruptcy.

Just guess, the credit score never even goes to 300. On the contrary, it reaches the lowest point in 471. Of course, once you go down to 600, you are pretty much damned when you have to get credit, but still ... It's Actually it is very difficult for his credit score to never even go to 300. On the contrary, it reaches its lowest point in 471. Of course, after you go down to 600, you are pretty much damned when you have to get credit, but still ... Actually, it is very difficult to really destroy your credit score.

As I mentioned before, your credit score is based on five main factors. These factors are your payment history, the amount owed relative to your available credit, the length of your credit history, the number of accounts, and the type of credit used. To reach 300 low, you must exit all five categories at once.

So, according to Paperno, you have to be a new customer (so there is no history) and then do something like open many new accounts (only one type), maximize in fast succession, file bankruptcy, and then immediately apply for more accounts (with type the same one). But you should act quickly because having a credit history (even negative ones) is seen as at least a little positive.

Interestingly, even though you can't actually reach zero (or even 300, for all practical purposes); you can fail to qualify for a credit score. More specifically, FICO requires that you have (and used) an account in the past six months to set a score.