400 credit score: A guide to credit scores
Quick insights
- A 400 credit score is considered subprime or poor by VantageScore® and FICO® scoring models, respectively.
- This score could limit eligibility for traditional credit cards, but secured cards and credit-building tools may offer ways to start building credit. Note that Chase doesn’t offer secured credit cards.
- Responsible use of credit, such as making on-time payments and keeping balances low, could gradually help improve your score over time.
A credit score is a three-digit number that lenders use to help predict how likely someone is to repay borrowed money. While lenders typically consider several factors when evaluating eligibility for loans or credit cards, a score in this range may limit your eligibility for some credit products. Fortunately, with positive habits, credit scores can improve over time.
Let’s explore how this score is classified by credit scoring models, application eligibility, factors that influence your score and some strategies for improving it.
What does a 400 credit score mean?
Credit scores generally range from 300 to 850, with higher numbers generally representing a positive credit profile. A score of 400 is in the poor or subprime range according to some popular credit scoring models.
For context, here are the scoring ranges for two credit scoring models.
- Superprime: 781 to 850
- Prime: 661 to 780
- Near prime: 601 to 660
- Subprime: 300 to 600
- Exceptional: 800 to 850
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 300 to 579
Scores like 400 may result from past credit challenges, including limited credit history or missed payments. This doesn’t mean you’re stuck with a low score forever—it just reflects the information currently in your credit report.
For young adults or anyone new to credit, a low score doesn’t have to define your financial future. Credit scores can change as your financial habits and history change.
What's my application eligibility with a 400 credit score?
Lenders use credit scores as one of several factors to help decide whether to approve applications for credit cards, loans and other financial products. With a 400 credit score, application eligibility for most traditional unsecured credit cards is typically low. This is because lenders may see a score in this range as a sign that you’ve had trouble managing credit in the past or haven’t yet had a chance to build a credit history.
That said, there are products designed for people with low credit scores or limited credit history, like secured credit cards. These cards may require a deposit that acts as your credit limit and can be used to help build credit over time with responsible use. Note that Chase doesn’t offer secured credit cards.
Some lenders also offer credit-building loans, or you could become an authorized user on someone else’s credit card account—ideally someone who manages their account responsibly—which might help add positive information to your credit report.
While it may take some time and consistency, building your credit could potentially open up more approval opportunities in the future.
What factors contribute to a credit score?
Understanding what goes into your credit score can help you make choices that may positively impact it in the future. Here are some of the main factors that determine credit scores:
- Payment history: Payment history is a heavily-weighted factor in credit scoring and tracks things like on-time payments, late or missed payments, defaults, collections and bankruptcies.
- Amounts owed (credit utilization): Credit utilization ratio is the amount of credit you use against your total available credit, which may be lowered by paying down existing debts and balances. A credit utilization ratio of 30% or below is generally considered favorable.
- Length of credit history: How long your credit accounts have been open. Longer histories may be seen as more favorable.
- New credit applications: How many new accounts you have applied for recently. Applying for lots of credit that results in a hard credit check in a short period can temporarily lower your score.
- Credit mix: The variety of credit accounts you have such as credit cards, personal loans or auto loans. A healthy mix can sometimes help your score.
Each credit scoring model may weigh these factors a bit differently, but most consider similar information.
How do I increase my 400 credit score?
Raising your credit score is a process that may take time and consistency, but here are some strategies you might consider:
- Making payments on time. Ensuring bills are paid on time, including any bills that may be reported to credit bureaus, could help support a positive payment history.
- Trying to keep balances low, especially on credit cards. Lowering your credit utilization ratio to around 30% or below may help improve your credit profile.
- Limiting how often you apply for new credit. Applications may lead to hard credit checks, which can temporarily lower your score.
- Considering tools for building credit. Secured credit cards, credit-builder loans or becoming an authorized user on someone else’s credit card may provide potential ways to build credit. Note that Chase does not offer secured credit cards.
- Checking your credit report and fixing any errors. Regularly reviewing your credit report may enable you to check for errors and dispute any inaccuracies that could be negatively affecting your credit. You can get free copies of your credit reports at AnnualCreditReport.comOpens overlay.
Improving a 400 credit score takes time and thoughtful financial behavior. Consistent habits may support progress over time.
Your bank or credit union may offer credit monitoring tools to help you track your progress. For instance, Chase Credit Journey® is a free online tool for anyone 18 or older with a valid U.S. address and Social Security number (SSN), offering access to your credit score and personalized score improvement plans provided by Experian™—no Chase account required.
In summary
A 400 credit score can feel like a big hurdle to overcome, but credit is something you can work to build over time. By understanding the factors influencing credit scores, making thoughtful financial choices and using available tools and resources, you may be able to improve your score and open up more opportunities in the future.
Every positive step, no matter how small, may help bring you closer to your financial goals. If you’re ready to start, you might consider exploring credit card options designed for building credit and using free tools like Credit Journey® to track your progress along the way.
