As many individuals know, credit scores vary from 300 to 850 spots. It is also possible to not use a credit score. In other words in case you never used recognition at all, you’d in theory not have a credit report.
So technically speaking, the lowest credit score you are able to probably have is 300 theoretically 300. Do you find it possible to have a score in this range? Yes, I assume it’s! That said, it’s almost impossible.
In order to use a score of just 300, you will need to not have any on-time payments. Hence, you will want to spend each bill late. You would also be required to be using all of the free credit of yours so every credit card would’ve to be completely way too busy.
Together with many of that, your revolving profiles will ALL have to be new because old accounts would increase your credit score.
In case you had been truly attempting to pull this off, here is what you will have to do:
Initially, ask for a secured charge card (you would not be in a position to obtain an unsecured one at this point) and max it out the day time you receive it. Make the minimum payment sixty days late and promptly max it out there once again. Continue to maintain the card maxed out while making payments 60 days late. This will make sure your card continues to be open but your payments are way late.
In case you did this, you can actually count on the score of yours to be near to 300 for some time. Having said that, I do not feel that it will remain in that range for very long. Keeping the revolving account open would increase the score of yours at least a little.
What can we find out from all of this? To begin with, it will be very stupid to really attempt this as the derogatory items would stay on the credit of yours for seven years. Next, by doing the actual opposite, you could achieve a positive shift in your credit. If you want that, adhere to these steps:
1. Get one credit card. In case you cannot get an unsecured card, get a secured card which often reports to the credit bureaus as a credit card. If you already have one, you are taken care of.
2. Pay off your card in full every month.
3. Never come up with a late payment over a credit card, or perhaps on any other revolving credit account.
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4. Use credit like it’s cash. Never spend money that you do not have.
If you continue to do that, your credit score is going to be amazing. Mine is over 800 and that is all I’ve done.