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300 Credit Score: Is It Good or Bad?

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Updated April 3, 2024
Written by Rachel Alulis

A 300 credit score is very rare. It is the lowest possible score you can get and is often the result of many significant negative items on your credit report.

The vast majority of lenders choose not to do business with consumers with this rating as they’re considered very risky. A score this low will make it hard to access credit products like loans or cards. If you qualify at all, the lender will most likely require you to put down deposits or pay extra fees just to borrow money.

On the bright side, you can change your score. It will take some work and dedication but ratings are flexible. 

In this article, we’ll go over what a credit score of 300 means and what you can do about it.

How to get a loan with a low score

Getting a loan with a poor score can be tough. Most traditional lenders – think big banks – want borrowers with ratings of 670 or higher. 300 credit score loans can be hard to come by but not impossible. Lenders are aware that various circumstances can lead to financial difficulties, which is why some stepped up to create products designed for subprime borrowers. Options to consider include:

  1. Secured loans: These loans require collateral, such as a vehicle or savings account, reducing the lender’s risk and making it more feasible to lend to someone with a lower score.
  2. Co-signer options: Having a co-signer with a better score can significantly increase your chances of getting approved for a loan. The co-signer acts as a form of insurance for the lender, promising to pay back the loan if you cannot.
  3. Payday alternative loans (PALs): Offered by some credit unions, PALs are designed for short-term funding without the high costs associated with traditional payday loans.
  4. Cash advance apps: These fintech apps send cash to your account instantly usually with little to no fees, no interest, and no credit check. These are typically low-cost loans for small amounts and may be deducted from your next paycheck.

While you can get a personal loan with a deep subprime score it is important to consider the full cost of borrowing. Read the fine print and make sure that you understand all the fees and can afford to repay the loan as agreed. If you can wait to take out a loan and improve your rating first, you will most likely get a better deal and save a lot of money. If it’s an emergency and you need cash now, then know that you have options.

Personal loans with a 300 credit score

Every lender has its own standards and criteria for who to lend to. Your score is simply one metric lenders use to determine your financial well being. It does not guarantee that you’ll be approved or rejected for a loan.

When you have a deep subprime score of 300 securing a personal loan will be tough. Loans for a 300 credit score are not commonly found at traditional banks or financial institutions due to the high risk associated with such a poor score. However, there are lenders you can turn to.

Consider your local credit union or community bank. These institutions often have more flexibility in their lending criteria and many offer financial products specifically designed for those with lower ratings. Many are fun more for the well being of the community than for profit and so may provide more personalized services and take into account your entire financial picture, not just your score.

Online lenders can be a viable option. Some online platforms specialize in lending to individuals in the subprime category. These loans tend to come with higher interest rates compared to traditional loans and have tacked-on fees, but they do allow consumers with poor scores to access funds.

Loan marketplaces can be extremely helpful in this case as they allow you to submit one application and be matched with direct lenders who consider subprime applicants. You’ll receive multiple personal loan offers and can compare them before you apply. Apply for the loan with the best interest rate, fewest fees, and affordable repayment plan.

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What are the FICO credit score ranges?

Understanding your score is the first step towards improving it. There are multiple scoring models, FICO and VantageScore being the most popular. FICO was developed in 1989 by the Fair Isaac Corporation and is the one most lenders use. VantageScore was created jointly by the three credit bureaus – Experian, Equifax, and TransUnion – in the mid-2000s. Both models use the data from consumers’ credit reports to determine a three-digit number rating of their creditworthiness. Scores range from 300 to 850 with higher being better.

FICO breaks its scores down into five categories:

  • Exceptional: 800-850
  • Very Good: 740-799
  • Good: 670-739
  • Fair: 580-669
  • Poor: 300-579

VantageScore uses similar but distinct ranges:

  • Excellent: 781 to 850
  • Good: 661 to 780
  • Fair: 601 to 660
  • Poor: 500 to 600
  • Very Poor: 300 to 499

Your FICO score serves as a guide to lenders. It helps them assess the risk associated with lending to you. Lenders will also consider other factors like your income, debt levels, and job stability, but your score is a good starting metric. Knowing if you have fair credit or good credit helps you understand what products you’re likely to be approved for and what you need to work on.

The lowest credit score possible

A score of 300 is a very poor credit score indeed. It is the lowest FICO score possible and it does not happen often. Even with bankruptcy, which can cause your rating to drop below 400, it is rare to find one all the way down at 300. A score this low is the result of a multitude of negative marks. Consumers likely have late or missed payments, collection accounts, judgments, high debt levels, and bankruptcy.

Why is the lowest credit score 300? Scoring models begin at 300 instead of zero to establish a baseline from which all credit activity can be measured. It provides a clearer differentiation between those with no credit history and those who simply have a low score. A credit score of 300 doesn’t imply negative worth; instead, it signals that the individual has had significant challenges that have lowered their rating.

What does deep subprime mean?

Subprime is a term used to classify borrowers who have poor credit scores. A bad rating – or subprime – is one that falls within the 300-620 range. A good credit score by contrast is anything above 670. Deep subprime borrowers are those with ratings below 580. The subprime classification indicates to lenders that these borrowers are at high risk of default.

Deep subprime borrowers have a history of financial mistakes. There may be late or missed payments, past due accounts, accounts in collections, high credit utilization, or bankruptcies. While lenders are more cautious about approving cards or loans for subprime borrowers, there are still products available.

The question, “What can I get with a 300 credit score?” is a fair one. 300 is as low as you can go so the options will be limited. Lenders who are willing to work with deep subprime borrowers often impose high interest rates, extra fees, and require security deposits or collateral to mitigate the risk.

Learn more about your credit score, debt, and loans on MoneyFor.

Actions that could improve your credit score

Credit scores are not permanent. There are actionable steps you can take to raise your rating.

Check your credit reports to understand your scores

Understanding your rating begins with reviewing your credit reports from the three main credit bureaus: Equifax, Experian, and TransUnion. These reports show the raw data that provides the basis for your scores. You’ll see details of your payment history, usage, account status, any hard inquiries, and other financial behaviors. Go over these reports and to pinpoint what you need to do better. Perhaps you’re missing payments or your utilization rate is too high. Now that you know past mistakes, you can correct them.

Get your free credit report

You’re entitled to one free credit report from each of the three major bureaus every 12 months through AnnualCreditReport.com. Take advantage of this opportunity to see if there are any errors or fraudulent activity on your report.

Challenge errors on your report

Credit reporting isn’t perfect. There may be errors or inaccuracies dragging your score down. If you spot errors, dispute them directly with the credit bureau. You will have to submit evidence that supports your claim. It does take work, but successfully correcting errors can have an immediate positive impact on your score.

Pay on time

A positive payment history is the best thing you can do for your score. Consistently paying your bills on time demonstrates to lenders that you’re a reliable borrower. Set up reminders or automatic payments to avoid late payments.

If you think you’re going to be late, call your lender as soon as possible. The lender may be able to help you rather than report it. Late payments that make it onto your report can hurt your score and be hard to get off.

Try to make more than the minimum payment. Doing so will help you keep your utilization down, save you money on interest, and keep you out of debt.

On-time payments by credit score range

Credit score rangeAverage percentage of on-time payments
750-85099.5%
700-74996.7%
640-69993.1%
300-63946%
Data from Credit Karma

Pay down your debt from largest to smallest

Reducing your debt is the second best thing you can do for your score. Your credit utilization rate makes up 30% of your FICO score and should never go above 30%.

According to Experian, the average consumer with a FICO score of 300 has $7,661 in credit card debt.

There are a ton of repayment strategies out there. The most cost-effective way is to pay down your debt from the largest interest rate to the smallest. This will reduce the amount of interest you pay and can save you hundreds or even thousands. Be sure to celebrate little victories along the way to stay motivated.

Building a better credit score

A credit score of 300 indicates a history full of missteps or a very thin file. Building up your score will be a gradual process. If you start right away, you should see improvements within a few months.

There’s no one way to build up your rating. The general principles you should focus on are to always make on-time payments, reduce your debt, keep your credit utilization ratio low, maintain old credit accounts, and apply for cards and loans only when you need to.

The worst myth out there is that carrying a balance is good for your score. Nothing about this is true. Carrying a balance increases your utilization rate (you want it to be low) and causes you to pay interest. If you can, always pay your balances in full each month.

Any company that promises quick fixes should be avoided, but there are legitimate products on the market designed to boost your rating.

Secured credit card

300 credit score credit cards are very rare and expensive. Most come with a high annual fee, monthly fees, sky-high interest rates, and low limits. Secured credit cards are a better choice. These cards require a security deposit that serves as your credit limit and lessens the risk for the issuer. Secured cards are easy to be approved for and can help raise your rating with responsible use.

Become an authorized user

Ask a friend or family member with a good score if you can become an authorized user on their card. You benefit from their good habits without having to apply yourself.

Credit builder loans

These are small loans designed to help you raise your rating. The money borrowed is held by the lender in an account and not released to you until the loan is repaid.

Report all payments

Certain companies report all your monthly payments to the bureaus. Bump your score up by paying your rent, utility bills, or subscription services on time – no going into debt.

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How does bankruptcy impact a credit score?

Bankruptcy can have a severe impact on your credit score. The extent of the impact depends on your rating prior to declaring bankruptcy. Consumers with high scores will see a much more severe drop than those on the lower end. It is rare though for your rating to fall all the way down to 300.

A bankruptcy can remain on your credit report for up to 10 years for Chapter 7 bankruptcies and 7 years for Chapter 13. During this time, it serves as a major red flag to potential lenders, signaling that you were once unable to meet your financial obligations. Many lenders will refuse to work with you for as long as there’s a bankruptcy on your record. Those that will do business with you, will offer higher interest rates or require more stringent qualification criteria.

Filing bankruptcy has significant repercussions and will make obtaining cards or loans in the future challenging and expensive. That said, it can offer a clean slate in terms of debt relief. Once your debts are discharged, you can focus on rebuilding your financial life. It will take time, but people can recover from bankruptcy.

Thinking about bankruptcy?

Find out how much you need to file and more.

Bottom line

A score of 300 is as low as you can go. Your best option with such a poor score is to improve it. Start by reviewing your credit report to find out your mistakes. Then establish responsible habits: pay your bills on time, don’t max out your card, reduce your debt, and limit your applications. Little by little your rating will improve and you’ll be able to access financial products that were formerly out of reach.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.
2. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.
3. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.
4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.
5. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC
6. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Qualifying Deposits into your Current Account over the preceding 30-day period. For more information, please refer to Fee-free Overdraft Terms and Conditions.
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8. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.
9. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. A qualifying direct deposit of $200 or more is required for 4.00%. No minimum balance required. For more information, please refer to Current Boost Terms and Conditions.
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11. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.
12. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.
13. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.
14. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.
15. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
16. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.
17. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.
18. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
19. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
20. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
21. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.
22. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.
23. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
24. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.
25. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
26. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
27. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.
28. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
29. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
30. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.
31. Tipping or not tipping has no impact on your eligibility for SpotMe®.
32. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
33. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.
34. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.
35. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.
36. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.
37. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.
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About the author

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

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