Can I get a Mortgage, Credit Card or Auto Loan With a Credit Score of 550?
In order to improve your credit score, it’s always the same formula — you need to make on-time payments, reduce debt, increase credit lines and use plenty of diversity in your credit profile. Additionally, it will help significantly to keep old lines of credit open.
Can I get a Home Mortgage Loan With a 550 Credit Score?
So, you have a credit score of 550 and you want to get a mortgage. Generally speaking, you can’t obtain a home loan with your credit score in the range of 550. People who have less than perfect credit are probably going to get an FHA loan. This loan typically works if your credit score is above 580. Even at 580, the loan is pretty expensive and you have to meet extra criteria to qualify.
Can I get a Auto Loan With a 550 Credit Score?
In most instances you can buy a car with a 550 credit score, but your loan will not come from a bank because they are going to want to see a score that’s much higher than this. A car loan with credit in this range is going to come from a finance company who is going to charge a steep interest rate.
Typically, if your credit score is around 550, you’re going to find that the derogatory items on your credit report are going to cause additional problems for loan approvals. It’s likely that you have many late payments and possibly a repossession or bankruptcy on your credit report.
Basically, your only option in this situation is to buy a car from a dealer that specializes in bad credit loans. That dealer is going to charge you extra interest and in all likelihood, extra for the car.
Can I get a Credit Card With a 550 Credit Score?
Typically, you won’t be able to obtain a credit card with a 550 credit score. But, almost anyone can get a secured credit card that reports your credit history to the credit bureaus — so that’s where you’ll have to start. I would recommend opening two secured cards, keeping the balance under 30% of the credit cards limit and paying on-time payments every month. After a year or so you’ll definitely be able to get a regular, unsecured credit card.