Minggu, 07 April 2013

How bad is a 550 credit score?

A few years ago, I had a credit score in the 550 range. A year before that my score was under 500. I know what it’s like to work with bad credit and so embarrassing as this is, I’ve learned to cope and then improve my score.

You can get a mortgage with 550 credit?

Generally, no, you cannot get a loan with credit in this range. The most widely available lending to people with less than perfect credit is the FHA loan. This loan will only work if your credit score is above 580. In 580, the loan is pretty expensive and you have to meet additional criteria to qualify.

If you have a score in this range, you will need to improve significantly.

You can buy a car with 550 credit?

Yes, there are situations where you can buy a car with credit 550. But it sure won’t be able to get a loan from a Bank for a car with credit this range. They’re going to want to see a score that is far superior.

Besides that, if the claim is in this range you are going to find that derogatory items on your credit report will cause further problems. Chances are you’ve many late payments and possibly a distraint or bankruptcy. If this is the case for you, it will be difficult to get approval for a loan.

The only option in this situation is to buy a car from a dealer who specializes in lending to people in your situation. That dealer is going to pay additional interest and in all likelihood, Extras for the car.

You can get credit cards with credit In this range?

Generally, no, you won’t be able to get a credit card with the credit of this range. That being said, almost anyone can get a credit card, so that is where we must start. I recommend to open two protected card and paying in full and on time each month. After a year or so you’ll be able to get a regular credit card and unsecured.

How to increase a credit score 550

In order to improve your credit, it’s always the same formula. You must make payments on time, reduce debt, increase credit lines and use a lot of diversity in your credit profile. In addition, it will help greatly to keep open the old credit lines.

I love helping people learn about money and credit. You can read an article about credit that I love here.

I am passionate about making a difference in people’s financial lives. I care about others. I try to give them the knowledge they need to succeed.

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