Financial Education
Understanding Your 370 Credit Score
A 370 credit score is considered very poor. Improve it by focusing on payment history, paying off debts, and managing credit utilization. Working with a financial advisor can provide personalized strategies to help you improve your credit.
Usually, consumers with credit scores this low are new to handling their finances or recovering from a major financial crisis.
As a part of the “very poor” credit category, consumers may have difficulty finding approval for loans, lines of credit, or other financial products. They may also have a tough time getting approved for apartments or rental agreements. If you’re looking to overcome hardships like these, good news, you’ve come to the right place!
Here, you’ll learn about what it means to have a 370 credit score, how bad credit can impact your life, and what steps you can take to start improving your credit score ASAP.
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Key Takeaways for a 370 Credit Score
Overview of Your Rating
370 is a very low credit score. It’s part of the lowest credit score tier, referred to as the “very poor” credit category.
Borrowing Options
Not a lot of loan options are available to consumers with credit this low. It may be best to work on credit improvement before seeking out loans.
Improving Your Score
Consumers with “very poor” credit can improve their scores by working on their payment history, avoiding new debts, and paying off existing balances.
Is a 370 Credit Score Good?
Unfortunately, 370 isn’t the best average credit score. It’s actually part of the lowest credit rating tier, called the “very poor” credit tier. All scores between 300 and 499 are considered “very poor” credit.
Pro Tip: Many lenders look beyond just the score. Consistent income and recent payment history can still unlock opportunities.
US Population Credit Score Distribution
25
20
15
10
5
0
300-579
580-669
670-739
740-799
800-850
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Personal Loans
A personal loan is a type of funding in which borrowers receive a lump sum payment and repay it over time. Depending on the size of the personal loan, terms can range from a few weeks to a few years. While many types of personal loan products use the borrower’s credit report and credit score when determining approval, there are bad credit lenders who specialize in working with people who may not have the best credit history.
Bank Loans
Consumers can also access personal loan products from a bank. However, banks are known for being strict lenders that usually only lend to borrowers with good credit scores. If you’re working with a lower credit score, you will probably have a higher chance of approval with a credit union or a bad credit lender.
Credit Cards
Credit cards are revolving lines of credit where borrowers have access to a set credit limit every month. However, since credit limits renew with each billing period, it’s easy to fall into bad spending habits and accumulate a lot of credit card debt. This may put bad-credit consumers in an even worse financial position!
Instead of getting a credit card account on your own, see if you can become an authorized user on another credit card account. As an authorized user, you’ll have access to a line of credit and have the card’s credit limit included in your credit utilization, but you won’t be directly responsible for repaying the balance. But keep in mind that any unpaid credit card debt may still have a negative impact on your credit score!
Instead of getting a credit card account on your own, see if you can become an authorized user on another credit card account. As an authorized user, you’ll have access to a line of credit and have the card’s credit limit included in your credit utilization, but you won’t be directly responsible for repaying the balance. But keep in mind that any unpaid credit card debt may still have a negative impact on your credit score!
Action Plan
Action Plan
Action Plan
How to Improve Your 370 Score
Check out some tips below that can help you improve your credit scores:
Understand How Credit History Works
Your credit reports are an official summary of your credit history. Inside your credit reports, you will find your credit score, which is determined using financial data from a few set categories. Those categories are:
• Payment history
• Current debts
• Credit mix
• Length of credit history
• New credit inquiries
Payment history and current debts are the most significant factors in determining credit scores. Although each category is important, the fastest route to improving your credit report and credit score is to include those two.
• Payment history
• Current debts
• Credit mix
• Length of credit history
• New credit inquiries
Payment history and current debts are the most significant factors in determining credit scores. Although each category is important, the fastest route to improving your credit report and credit score is to include those two.
Get a Debt Payment Strategy
In addition to maintaining your payment history, you may also consider submitting more than the minimum amount due on some of your payments. This will help you pay off your debt faster and improve your overall credit utilization rate.
You can also apply debt repayment strategies like the debt snowball or the debt avalanche methods. With the debt snowball method, you start by paying off your smallest balances first and work your way up until you have paid off your largest balance. The avalanche method is the opposite; you start by paying off your most expensive balances first and work your way down to your smallest one.
You can also apply debt repayment strategies like the debt snowball or the debt avalanche methods. With the debt snowball method, you start by paying off your smallest balances first and work your way up until you have paid off your largest balance. The avalanche method is the opposite; you start by paying off your most expensive balances first and work your way down to your smallest one.
Stick to a Payment Schedule
You won’t be able to get a higher credit score unless you make it a habit to pay all your bills on time. Not only is payment history the most significant factor in improving your credit, but it can also be the biggest obstacle preventing your score from improving. Late payments can stay on your credit reports for up to seven years!
So, to make sure you submit payments for your bills and other financial obligations on time, make a note in your planner, calendar, computer, or smartphone. You can also sign up for autopay so your payments can be automatically deducted from your bank account.
So, to make sure you submit payments for your bills and other financial obligations on time, make a note in your planner, calendar, computer, or smartphone. You can also sign up for autopay so your payments can be automatically deducted from your bank account.
Avoid Inquiries for New Credit Accounts
Every time you apply for a loan, credit card, or other credit account, the lender will usually perform a hard credit check. Hard credit checks are official inquiries into a consumer’s credit score and are kept track of by the credit bureaus. With each hard credit inquiry on your profile, you may see your overall credit score drop a bit. And so, applying for multiple credit accounts within a short period of time can cause your credit scores to drop even further. To avoid this, try not to apply for new loans or credit cards until you’ve improved your credit history a bit. You’ll save yourself from racking up unnecessary hard credit checks and also prevent yourself from accumulating more debt!
Can I Buy a House With a 370 Credit Score?
Buying a house is already a notoriously difficult endeavor, and without a good credit score, it will be even more difficult. While there are FHA loans designed to help bad-credit consumers purchase a home, you typically need a minimum credit score of 580 to qualify. So, your best bet at buying a house and getting the best deal is most likely going to include improving your credit score as a first step.
Mortgage Type
Description
Credit Score Requirements
Key Features
FHA Loan
Insured by Federal Housing Administration.
As low as 500 with 10% down.
Lower down payment requirements.
VA Loans
Backed by Dept. of Veterans Affairs.
Typically 620 (varies by lender).
No down payment required; no PMI.
USDA Loans
For homebuyers in rural/suburban areas.
640 for automatic underwriting.
No down payment required.
Disclosure: This table provides estimates; requirements and features can vary by lender and situation.
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