Your credit score is a number that lenders use to determine how risky you are as a borrower. It ranges from 300 to 850 and is typically used as a benchmark for loans and credit cards.
Generally, anything below 670 is considered “bad,” though it can vary by lender. If your credit score is 533, you have a poor credit history and may be facing difficulty getting a loan or credit card without paying high interest rates.
Overview of a 533 Credit Score
Your credit score is a number that lenders use to determine how likely you are to pay back loans. Lenders look at a number of factors to calculate your score, including your payment history and credit utilization.
Your score takes a hit for missing or late payments on credit cards (known as delinquency). It also incorporates your on-time payments for other debt sources, like car and mortgage loans.
You can boost your credit score by repairing your report. This includes removing negative items from your report and disputing harmful items that are hurting your score.
Having a poor credit score can make it difficult to get approved for most loan products, including credit cards and auto loans. It can also lead to higher interest rates and fees.
Credit Card Options with a 533 Credit Score
Credit cards can be a great way to manage your finances and make purchases. However, they also carry significant interest rates and fees.
As a result, it’s important to pay your balance in full each month to avoid paying extra interest on purchases. Additionally, you should use these cards to build your credit history.
If you have a 533 credit score, there are a few options for credit cards to consider. A secured credit card, for example, can help you rebuild your credit by requiring you to place a refundable security deposit. Secured cards have higher approval odds than unsecured credit cards, and they typically have low fees.
Auto Loans with a 533 Credit Score
Your credit score is a number between 300 and 850 intended to help lenders make decisions about extending or denying you credit. A 533 credit score is considered “poor,” and lenders typically turn down applicants in this range for unsecured loans that don’t require collateral or a security deposit.
Your debt-to-income ratio and the amount of your down payment are other factors that lenders look at when determining auto loan interest rates. Lowering your DTI and down payments can help you get better auto loan rates.
Before you apply for an auto loan, shop around to see which lenders offer the best rate. You can compare offers from banks, credit unions, online lenders, loan marketplaces and car dealerships.
Personal Loan Options with a 533 Credit Score
A 533 credit score is considered poor by lenders, and you won’t have many options to borrow money. However, it’s possible to get a personal loan if you take steps to improve your score and shop around for the best rates.
To increase your score, focus on improving your payment history and reducing the total amount of debt you have. These two factors make up 10% of your FICO score, so paying down debt and keeping credit utilization low is a good way to boost your overall credit score.
You can also build your credit by applying for a secured credit card. Some credit card issuers require a security deposit of $500 to $1,000, but if you can afford it and have a good credit history, this can be an affordable way to start building your credit.
Mortgages with a 533 Credit Score
Whether you’re purchasing your first home or your fifth, mortgages are an essential financial tool. Most people think they must have a credit score in the 600s to get a mortgage, but that’s not the case.
Many conventional mortgage lenders will decline your application with a 533 credit score, but there are still some options for those with scores in the 500s. You may be able to find an FHA loan, which allows borrowers with lower credit scores to apply for a mortgage.
Car loans are also a challenge with this credit score, but there are still some lenders who accept borrowers with scores in this range. But most auto lenders don’t approve loans for these scores, and even those that do often charge a large down payment or have high interest rates.