What Is a Bad Credit Score in the USA? (2026 Guide)
If you’re trying to apply for a credit card, loan, or even rent an apartment in the United States, your credit score is one of the biggest factors lenders care about. But what actually counts as a bad credit score in the USA? And what does it mean for your approval chances?
This guide explains the credit score ranges used in the U.S., how “bad credit” affects your financial options, why scores drop, and how long it takes to repair them.
If you’re wondering what is a bad credit score in the USA is, FICO defines anything below 580 as “poor.”
Why Scores Below 580 Are Considered Bad in the USA
The most widely used scoring model in the United States is the FICO® score, which ranges from 300 to 850.
Here’s how the ranges break down:
| Score Range | Rating | What It Means |
|---|---|---|
| 300–579 | Poor (Bad Credit) | High risk for lenders—approvals are limited |
| 580–669 | Fair | Some approvals, higher fees |
| 670–739 | Good | Average approvals and rates |
| 740–799 | Very Good | Above-average odds + better rates |
| 800–850 | Excellent | Best rates, highest approvals |
Anything below 580 is considered bad credit by most U.S. lenders.
How Bad Credit Affects Approvals
With a score under 580, approval becomes more restricted. Lenders often respond by:
- Lowering credit limits
- Asking for security deposits
- Charging higher APRs
- Adding annual or program fees
- Denying unsecured products outright
This is why many people with low scores start with:
✔ Secured credit cards
✔ Credit-builder loans
✔ Cards designed for fair/bad credit
These are meant to rebuild trust with lenders over time.
What Causes a Bad Credit Score?
A bad score doesn’t come from one factor—it’s usually a combination of behaviors and events. Common causes include:
1. Late or Missed Payments
Payment history accounts for 35% of FICO scoring.
Examples:
- Missing multiple payments in 12 months
- A single 60-day late payment can drop scores 30–100 points
2. High Credit Utilization
Utilization ratio = balances ÷ limits.
Examples:
- $700 balance on a $1,000 limit = 70% utilization (bad)
- $200 balance on a $1,000 limit = 20% utilization (good)
3. Collections or Charge-Offs
Unpaid accounts sent to collections hurt long-term.
Stays on report up to 7 years.
4. Bankruptcy
One of the most damaging events.
- Chapter 7 → stays up to 10 years
- Chapter 13 → stays 7 years
5. Too Many Credit Inquiries
Applying for too many cards in a short period signals risk.
How Long Does Bad Credit Stay on Your Report
Negative marks don’t last forever, but they do stick around:
| Event | Duration |
|---|---|
| Late Payments | 7 years |
| Collections | 7 years |
| Charge-offs | 7 years |
| Chapter 13 Bankruptcy | 7 years |
| Chapter 7 Bankruptcy | 10 years |
| Hard Inquiries | 2 years |
The impact fades over time, especially if new positive behavior continues.
Can You Get Approved for a Credit Card With Bad Credit?
Yes — but your options shift.
For scores under 580, realistic approvals include:
- Secured credit cards
- Unsecured bad credit cards
- Credit-builder cards
- Store cards (limited use)
- Loan products for rebuilders
Secured cards offer the highest approval odds since the deposit reduces lender risk.
How to Improve a Bad Credit Score (Practical Steps)
If you’re under 580, repairing your score is possible. Most people see progress within 3–12 months with consistent behavior.
1. Pay On Time, Every Time
This is non-negotiable. It’s the biggest scoring factor.
2. Lower Credit Utilization
Target under 30%, ideally under 10% for best scoring impact.
3. Don’t Close Old Accounts
Closing old cards reduces average account age — which lowers scores.
4. Add New Positive Signals
Secured cards are extremely effective because they report monthly.
5. Dispute Genuine Errors
Many scores are dragged down by reporting mistakes.
How Long Does It Take to Go From Bad to Fair Credit?
If you’re starting below 580:
- With proper strategy → 6–12 months to reach fair (580–669)
- With aggressive rebuilding → sometimes faster
- With repeated late payments → much slower
Example:
A person who pays down high balances and sets up autopay can often gain 40–100 points in 12 months, depending on history.
Why Fixing Bad Credit Matters
Better credit opens doors:
✔ Higher approval rates
✔ Lower interest rates
✔ Higher credit limits
✔ Better loan terms
✔ Lower insurance premiums (in some states)
Credit impacts far more than just credit cards.
Key Takeaways
- Below 580 = bad credit in the USA
- Bad credit reduces approval odds for unsecured cards
- Secured cards are the most reliable rebuilding tool
- Negative marks fade but don’t disappear instantly
- Improvement is realistic within 6–12 months
FAQ (Short Answers)
Q: Is a 580 score terrible?
No — it’s in the “fair” range and can still get entry-level approvals.
Q: Does checking my credit hurt my score?
No — checking your own score is a soft inquiry.
Q: Can I rebuild after bankruptcy?
Yes — but it takes longer and secured cards are usually step one.
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