Understanding Your 400 Credit Score

A 400 credit score falls within the lowest credit score range. It is a very poor credit score; improvement should be a priority.

A 400 credit score will limit your borrowing options to bad credit loans. A cosigner may be necessary for other loan options.

Actions like paying your bills on time, keeping your credit utilization low, and building your credit mix are just some ways to help your credit.

Hard credit checks (checks that are done for credit approval), when done several times in a short period, can be harmful to your credit. So, try to avoid these if possible. This goes hand in hand with keeping your debt low!

One of the most harmful things you can do to your credit is to have a late or missed payment. These payments can remain on your credit reports for up to seven years! Because payment history is the most significant factor in determining your credit scores, it will be extremely detrimental. Set up things like automatic payments or reminders to avoid missed payments!

Debt can impact so many aspects of your finances, as well as several factors that make up your credit score, such as your credit utilization and credit mix. Many Americans do struggle with debt, specifically credit card debt. In fact, according to the 2022 data from the Federal Reserve Bank of New York, the average credit card debt for households was $7,951.¹ When you are in this stage of credit, you’ll want to keep debt as low as possible, both credit card accounts and loans. Once you get to a really good place, then you can start focusing on things like your credit mix.

Get a personalized plan to improve your score today.