Your credit score is within the range of scores, 300 to 579, considered very poor. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on the grounds that they have unfavorable credit. A credit rating of 550 is rated poor on the standard scale of 300 to 850. It is 150 points away from being a “good credit score”, which many people use as a benchmark, and 90 points away from being “fair”.
A credit score of 550 won't stop you from being approved for a loan or credit card, but it will make it more difficult. About 1 in 10 new credit card accounts are opened by someone with a credit score lower than 580, according to Equifax data. Trying to qualify for a car loan with a credit score of 550 is extremely expensive, if not completely impossible. This means they may qualify for higher loan amounts, higher credit limits, lower down payments, and better bargaining power with loan and credit card terms.
No matter where you fall on the scale, always remember that there are a number of factors that can damage your credit history and help you improve your score. Credit Glory requires the active participation of its clientele in relation to the documents and information requested, including research results, to obtain the desired outcome of a healthy and accurate credit report. The further you exceed this credit rating range, the term of your loan and the acceptance rate of loan applications can only increase. While the steps described above can improve your credit score right away, they may not be enough to put you in the good range. In addition to your credit score, Best Egg analyzes more than 1500 proprietary credit attributes from sources including external data providers and your digital footprint.
Being an authorized user on an account that makes on-time payments is a great way to increase your credit score. If you're struggling to get approved for a personal loan with a credit score below 550, consider applying for a guarantee to improve your chances. No matter how good your credit score is, a lender won't approve you if they think there are risks, such as your inability to pay. You must have at least one credit card account in order to add positive information to your credit reports every month. Having a credit rating of 550 makes it very difficult to get approved for a loan or a new line of credit, as shown in the table below.
Scores in this range make it difficult to get a mortgage and mean you'll get high interest rates on car loans and unsecured credit cards. Smaller loans, such as car loans and boat loans, will likely accept lower credit scores than what is typically required by most credit unions. Unfortunately, having a 550 credit score doesn't necessarily mean it's on par with the minimum score required by most lenders. To improve your chances of getting approved for loans or lines of credit, it's important to take steps to improve your score.
