As mentioned above, a 552 FICO® Score is considered “Very Poor”. This is typically a result of situations such as:
Approximately 16% of all consumers in America have FICO® Scores in the “Very Poor” range (552-579).
With a 552 FICO® Score, you’ll struggle to obtain credit cards & loans. For the credit you do happen to secure, unfortunately it will come with extremely high interest rates.
To improve your credit score, you need to focus on fixing the underlying factors.
Not sure where to start? A dedicated credit repair agency, like us, can work with you to ensure you’re maximizing all avenues when it comes to improving your score.
As mentioned previously, a 552 credit score is considered “Very Poor”. So your lending options are going to be extremely limited.
In most cases, your lending applications will be rejected. For loans/credit you are approved for, you will often need to pay extra fees or deposits, and you will have the highest interest rates.
In most cases, your lending applications will be rejected with a 552 credit score. But in cases where you are approved, unfortunately you will pay the highest interest rate tiers.
These higher interest rates can cost you thousands of dollars in added interest over the lifetime of your loans, in comparison to if you had a “Good” credit score.
We highly recommend you take the necessary steps towards repairing your credit, and securing a better financial future for yourself.
The credit score system can be complex and mystifying, impacting your financial health significantly. If your score currently sits at 552, there's no need to panic - there's always room for improvement. The scale ranges from 300 to 850, with higher scores indicating better creditworthiness. At 552, your score is slightly clouded, indicating a fair ranking that may make it difficult to secure loans and credit cards with favorable terms. To demystify credit scores, it's crucial to understand the factors that influence them: payment history, credit utilization, length of credit history, credit type, and recent inquiries. By focusing on improving these factors, you can raise your credit score over time.
Building your credit is not an overnight process, but it's worth the effort. One of the most crucial steps is to consistently make on-time payments for all of your credit accounts. Late payments can significantly damage your credit score. Additionally, strive to keep your credit utilization low by avoiding maxing out your credit limit and using less than 30% of your available credit. You can also improve your credit by becoming an authorized user on someone else's credit card with a good payment history and low utilization. However, ensure that the primary cardholder maintains their good credit behavior to avoid any negative impact on your score. By following these strategies, you can build a strong credit foundation for your financial future.
The chances of securing a mortgage with a 552 credit score are extremely low unfortunately. Is it possible? Maybe, but it generally isn’t a wise idea with such a low credit score.
Why? Because you’ll end up paying thousands of dollars in extra interest over the life of the loan.
Instead, we recommend focussing on improving your credit score, to at least 580-669 (which is considered “Fair”, or ideally 670+. Once you’ve increased your score, you’ll be in a much better place to apply for a mortgage.
With a 552 credit score, you’ll be considered a “deep subprime borrower”, which is the lowest credit tier. There may still be auto loan options for you, but they’ll be a lot more difficult to come by, and you will pay higher interest rates.
Unfortunately the theme continues here, with a 552 credit score, it is going to be difficult to obtain a personal loan (at least one with good interest rates). You may be tempted to deal with lenders that have a poor reputation, but we urge you not to.
The best thing to do is focus on improving your credit score, to the “Fair” range (between 580-669), which will put you in a significantly better position when it comes to applying for loans/credit.
Let’s face it, a 552 credit score is not good. Applying for any forms of lending will be very difficult & expensive.
You’ll pay higher interest rates, and often have substantial fees.
The best course of action (by far), is to improve your credit score first before you apply for loans. Not only will it open more doors for you, it will also save you a ton of money in the long run (due to lower interest rates).
Speak with a live credit specialist for your free consultation, now
