OMG! My Credit Score Is 550. Is It Good Or Bad?
It is a matter of worry because 550 credit score is considered as a very poor. According to FICO score scale, 300-850 is considered as a very poor credit score. People who are under 550 credit score category may face difficulty to get an approval of their credit card or loans. In some special cases, credit applicants may need to pay more fees or interest rates due to poor credit score.
How To Improve Your 550 Credit Score
A low or poor credit score can make it very difficult to get a credit card or loan at best rates and terms. But luckily, you can rebuild your adverse credit score to perfect score. Basically, a credit score is just a number from 300 to 850 that play a crucial role at the time when you’re applied for a credit. The creditor has requested a credit score details from you. The credit score helps lenders to take a responsible decision that you can repay your debts or not.
Credit Score Affecting Factors
Payment History: A history of paying your loan or bills on the due date will positively affect your credit score. Late payment or missed payments will harm your credit score negativity.
Credit Histories: Longer credit history positively affects your credit score but shorter credit histories can make lenders less confident about your profile and potential of debt settlements on time.
New Application for Credit: Making a new application for credit is known as hard inquiries and can harm your credit score. Try to checking your credit own as it can’t negatively affect your credit score.
Public Information: Public information such as tax liens or bankruptcies, showing on your credit report can adversely impact your credit score.
Steps To Rebuild Your Credit
- Try to pay your pending bills on time such as auto loans, credit card bills, and household utility bills. Set up payment reminder, so you can definitely clear your bills on time.
- If possible try to lower your debts like credit card balance.
- Apply for a secured credit card for your small purchases and bills, and paying the bill in full on time.
- Become an authorized user on someone’s credit card or try someone good creditor to co-sign your loan.
What To Do If You Can’t Get Approval
If your credit score is too low then lenders 100% reject your loan application. Building a credit score is a good way to achieve a loan at lower interest rates with instant approval but this is a slow process. Nowadays, a new way of lending is introduced by Paydaymart.ca in which you can apply for bad credit loans even if your credit score is low or very low.