Although not many people think about this the absolute lowest credit score is zero (none). Yes, there are thousands of “ghosts” out there who have no credit at all for any number of reasons that include:
- No permanent address
- No permanent income
- No co-writers on any loan programs
- No documentation of any sort
These people are, many times, illegal aliens, who buy “Social Security” cards – usually stolen from an older victim who may not even know it is gone – and who then establish identities for themselves with their own names and just a few changes to the original Social Security document. These people also have to “find” birth certificates in case they are asked to provide that type of documentation for a driver’s license.
And, while zero is the absolute lowest credit score, if you have are a citizen and have had any sort of credit at all in your past then you may find you have another of the lowest credit scores on record of between 100 and 300. To achieve this “Hall of Fame,” you must have:
- Walked away from huge amounts of credit card or other debt without using a Chapter 7 or Chapter 11 bankruptcy procedure. In other words, you just decided you didn’t want to pay the bills any more and walked away. You may even have remained at the same address, but chances are you’ve taken yourself off the grid by using electronic aliases and other ways around the network of credit bloodhounds that work the byways of the Internet
- Walked away from a car or truck will without leaving a forwarding address. Of course the car company has no choice but to repossess, but by now you don’t care.
- Purchased a junker that’s barely running, making an initial payment, and then walking away from the monthly payments.
Then there are those who fall in the 300 to 500 area of the lowest credit scores. These are usually poorer people who have had some trouble with their budget and have fallen behind in some payments. Generally, these folks will actually try to work with a budget consolidation house to try to rectify things, but, they don’t make enough to even meet the lowest bar that can be set so their solution is the one that others should have tried, using bankruptcy. This is the one that works most of the time for these people because they have enough pride in themselves that they do want to retain what is left of their name and they really don’t want to stick anyone else with their bills. They tried, but they just couldn’t do it. Instead, they usually find free state legal help, file the correct papers and get the protection of the courts – federal and state – from further bother with these matter and once these bankruptcies are discharged they can begin to rebuild their reputations.