A credit score is a number that lenders use to assess your creditworthiness. This number ranges from 300 – 850 and is usually used as a guideline when deciding whether to approve you for a loan or credit card.
A 539 credit score is classified as “poor.” This means that many lenders choose not to do business with borrowers with a score this low. That can make it difficult to get a credit card, auto loan, or mortgage approval.
Overview of a 539 Credit Score
A 539 credit score is considered a “very poor” credit score. It’s a result of payment issues that may include past missed payments, collection accounts, charge-offs, foreclosures or bankruptcy.
A low credit score can be a major obstacle when it comes to securing loans. Applicants with a 539 credit score may find it difficult and expensive to obtain credit cards, personal loans, auto loans or mortgages.
Those with this score will also find that lenders are more likely to require them to pay a large fee or deposit on their credit cards, loans or utility bills.
The good news is that your credit score can be improved by following a few simple steps. One of the most important is to make all of your monthly payments on time. This will help improve your overall credit score, but will take some work.
Credit Card Options with a 539 Credit Score
Credit cards are a great way to make your purchases more convenient and secure, but they can also help you build or rebuild your credit. Fortunately, there are many options for people with less-than-ideal credit, including cards that offer a high credit limit and rewards for good payment behavior.
The key is to choose cards that have low balance transfer, cash advance and other fees, which can eat into a small credit line. Be sure to review the card’s terms before applying to avoid hidden and punitive charges.
You should also remember to pay your bills on time and avoid high utilization rates, which can reduce your score. In fact, utilization rate accounts for as much as 30% of your FICO score. It’s best to keep your usage below 30% on a card-by-card basis and overall.
Auto Loans with a 539 Credit Score
If you have a credit score of 539, you’re probably not eligible for the best auto loan interest rates. But it’s still possible to get a good rate if you’re willing to shop around and work to improve your credit score.
Auto lenders use credit scores to determine how much of a risk they’re taking when they extend you an auto loan. A FICO credit score ranges from 300 to 850, and is based on various factors.
If your score is lower than average, you may be able to find better interest rates by increasing your down payment, choosing a shorter loan term or getting a co-signer. However, you’ll need to make sure you can afford the payments and aren’t paying too much in interest.
Personal Loan Options with a 539 Credit Score
If you’re in a tough situation, a personal loan can help cover emergency expenses or consolidate debt. However, if your credit score is lower than average, you may have trouble getting approved for the best rates and terms.
You can boost your score by making consistent on-time payments on all your revolving and installment debt. This includes credit cards, auto and mortgage loans.
Adding a co-signer can also improve your chances of getting a loan. A co-signer’s credit history and income can improve your odds of getting a better interest rate.
Keep in mind that your 539 credit score can take a hit if you have too many hard credit inquiries within a short period of time. These hard inquiries drop your score temporarily, but it will typically recover if you make timely payments on your loans.
Mortgages with a 539 Credit Score
When applying for a mortgage, your credit score plays an important role in the decision-making process. Generally, lenders prefer applicants with credit scores in the 600s or 700s, although there are exceptions.
Despite the fact that your credit score isn’t a perfect predictor of your ability to repay a loan, it can still impact your eligibility for a home loan. Because of this, it’s a good idea to check your credit report and score frequently, so you can be sure that all three credit bureaus are reporting your financial information correctly.
Depending on your credit score, there are a few types of mortgages that you can qualify for. While conventional mortgages typically require a minimum credit score of 620, FHA loans offer more flexible lending terms to borrowers with credit scores as low as 500.