What Is a Bad Credit Score and How to Fix It
The letter says declined, and the reason is one number you did not know you had.
The short version: Short answer: in the US, FICO calls any score below 580 poor, on a scale of 300 to 850. Lenders see a poor score as high risk, so you pay more or get refused. You fix it by paying every bill on time, getting card balances well under 30% of their limits and correcting report errors. Late payments stay on your report for seven years, but their effect fades long before that.
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Get a plan built around your own numbersWhere the line sits
| FICO score | Band |
|---|---|
| Below 580 | Poor |
| 580 to 669 | Fair |
| 670 to 739 | Good |
| 740 to 799 | Very good |
| 800 and above | Exceptional |
Lenders also use VantageScore and their own cut-offs, so a score that is fine for one lender can be a decline at another. Experian says only 16% of consumers sit in the 300 to 579 range, against an average score of 714.
What a low score costs in dollars
Experian’s Q2 2026 data shows average new-car loan rates of 4.41% for the best tier, 6.15% for prime, 13.52% for subprime (501 to 600) and 16.11% for deep subprime (300 to 500). I ran a $25,000 car over 60 months through each rate.
| Tier | Rate | Monthly | Interest over 5 years |
|---|---|---|---|
| Super prime | 4.41% | $465.05 | $2,903 |
| Prime | 6.15% | $485.07 | $4,104 |
| Subprime | 13.52% | $575.50 | $9,530 |
| Deep subprime | 16.11% | $609.41 | $11,565 |
Same car, same price. A deep subprime borrower pays $8,662 more than a super prime one, which is about $144 extra every month for five years. Fix the score before the big purchase, not after.
The fix, in the order that pays off
- Read your reports. You can get a free report from each bureau at AnnualCreditReport.com, and the bureaus have permanently extended free weekly reports there, according to the FTC. Look for accounts you do not recognise, wrong balances and wrong dates.
- Dispute what is wrong. Write to the bureau, explain each error, attach proof and keep copies. The bureau has 30 days to investigate. Do not pay a company to do this for you.
- Never miss another payment. Payment history is 35% of a FICO score, the largest slice. Set autopay for at least the minimum on every account, then pay extra by hand.
- Bring card balances down. Amounts owed is 30% of the score. See the worked example below.
- Add positive history if you have none. A secured card (your deposit becomes your limit) or a credit-builder loan from a credit union. Confirm the issuer reports to all three bureaus and has no monthly fees.
- Stop applying for things. Each application can add a hard inquiry. Give the score room to recover.
Worked example: how fast can you get under 30%?
Say you owe $9,000 across cards with a combined limit of $12,000. That is 75% utilization (the share of your limit you are using). Interest is 24% APR and you can pay $400 a month.
- Under 30% ($3,600 owed) after 21 months.
- Fully cleared after 31 months, with about $3,077 in interest.
- Every extra $100 a month shortens both. Use the utilization calculator to see which card to pay down first, or the AI Debt Payoff Planner to plan the order.
The 30% line is a common rule of thumb, not a cliff. Lower is better. Read what utilization is and how to lower it for the detail.
Copy this dispute line
I am disputing the [account name] account, number ending [last 4]. The [balance / date / late mark] is wrong because [reason]. Proof is attached. Please investigate and send me the result and a free copy of my updated report.
US debt relief guides and tools.
Rebuild your credit with a planHow long will it take?
Nobody can give an honest date. What you can know is how long marks stay on your report.
| Item | How long it stays |
|---|---|
| Late payments | 7 years |
| Collection accounts | 7 years |
| Chapter 13 bankruptcy | 7 years |
| Chapter 7 bankruptcy | 10 years |
| Hard inquiries | About 2 years |
Seven years is when a mark leaves your report, not when it stops hurting. Its weight fades long before that if recent history is clean. So the best use of your first six months is building new, boring, on-time months. See does paying off debt improve your credit score for what happens when you clear a balance and how to improve your credit score for more levers. If you have no history at all, read how to build credit from scratch.
Where to borrow while your score recovers
Credit unions often look at more than the number and may approve you at a lower rate than a bank. A co-signer with good credit can get you approved, but they are on the hook for every missed payment. Avoid payday loans and title loans: the interest is so high that they usually make the problem worse. If a collector is calling, know your rights.
Questions people ask
What is the lowest credit score you can have?
300 on the standard scale. FICO scores run from 300 to 850. Almost nobody sits right at the bottom, and a low number is a starting point, not a verdict.
Can I get a card or a loan with a bad score?
Often yes, at a price. Many lenders will not lend to very poor borrowers, and card issuers may ask for extra fees or a deposit. A secured card is the usual way back in.
Will checking my own score make it worse?
No. Looking at your own score is a soft check. Applying for new credit is what can dent it, since FICO counts hard inquiries for the first 12 months.
How fast can I raise a bad score?
It depends on what dragged it down. Paying down high card balances can move a score within a billing cycle or two. Late payments and collections take longer to fade.
Should I pay a company to fix my credit?
No. Disputing errors is free and you can do it yourself. Be wary of anyone who promises to delete accurate negative items.
Does a debt management plan hurt my score?
It can lower it at first, because credit card accounts are usually closed. It may still be the right step if you cannot keep up, so talk to a nonprofit counselor first.
Do I have to wait seven years?
No. The effect of a late payment fades with time, so a clean record over the next 12 to 24 months matters more than the date the mark drops off.
Disclaimer: DebtShift is an educational platform operated by H Ali Logistics Ltd. This article is general education, not financial, legal or credit advice. For free, nonprofit credit counseling, contact the National Foundation for Credit Counseling (nfcc.org) on 877-360-6322.
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