A credit score of 655 is regarded as “Fair” by widely used credit scoring models. That means a borrower with this score will have difficulty getting loans that require high credit scores, like mortgages and auto loans.
Fortunately, there are still plenty of options for those with a 655 credit score who want to take out a loan. These include conventional loans, FHA loans, VA loans, USDA loans and jumbo loans.
Overview of a 655 Credit Score
A 655 credit score is a middle ground between “good” and “bad.” You can still get a lot of financial options with a 655 score, but your interest rates and fees will likely be higher than they could be with a better credit rating.
Having a credit score below 660 can make it difficult to qualify for a mortgage. This is because lenders tend to see lower scores as more risky.
This means you’ll probably need to make a bigger down payment than someone with a 620 credit score. You’ll also need to meet certain income requirements and debt-to-income ratios.
You can improve your 655 credit score by removing negative items and maintaining good credit habits. This includes paying bills on time, keeping your credit card balances low, and avoiding debt that you don’t need.
Credit Card Options with a 655 Credit Score
There are a few credit card options for people with a 655 credit score. These cards can help you build credit and save money on your purchases.
Credit scores are based on your debt-management history, and they determine whether you get approved for credit cards, auto loans and mortgages. Credit scores also impact your interest rates, which are what you pay for your credit cards.
The best way to improve your credit is to remove negative items from your report. To do this, you can speak with a credit repair expert who can help you get started on a plan to boost your score.
While it is true that a 655 credit score doesn’t make you eligible for all financial products, it’s not impossible to get a home loan, car loan or even a credit card with a 655 credit score. However, you should be aware that loans optimized for lower credit scores usually feature higher interest rates and fees than loans designed for consumers with better credit ratings.
Auto Loans with a 655 Credit Score
Your credit score is an important factor when it comes to qualifying for auto loans. It can affect your interest rate, and how much you pay in fees and interest over the life of the loan.
Most lenders use credit-scoring models from Fair Isaac Corp., including its generic FICO scores and industry-specific FICO Auto Scores. These are based on your credit report information and can vary depending on which credit bureaus you use.
The higher your credit score, the better your rates and terms on auto loans will be. A few percentage points can make a huge difference over the life of your loan.
If you’re in the market for a new car, consider getting preapproved with a few lenders first to see if you qualify. This will save you time and money when you go to the dealership. Plus, you’ll have more leverage when you negotiate with the salespeople.
Personal Loan Options with a 655 Credit Score
If you have a 655 credit score, you may be able to find a personal loan at a lower interest rate than you’d find with higher credit scores. However, this is not a guarantee.
New loans and lines of credit can hurt your score because they lower the average age of your accounts, add hard inquiries to your report, and increase your debt-to-income ratio. Avoid adding new credit cards or loans to your list until after you’ve consolidated existing debt and paid them off on time.
You can also get a credit card with a 0% intro APR and transfer your current balance to the new card to keep interest from adding up. However, these types of offers are not always available to everyone, so make sure you do your research before applying for one.
Mortgages with a 655 Credit Score
One of the best ways to secure a mortgage is by working on your credit score. Getting your score to 655 can be easy if you take the time to fix any negative items on your report.
You can also work with a professional credit repair company to help you get the score you deserve. They can help you remove all those negative items from your credit report and make sure that they stay off of your report for good.
You may be able to find home mortgage loans with a credit score of 655, though they will likely come with higher interest rates and origination fees than industry-best options. Nevertheless, there are many different types of mortgages available that are ideal for individuals with poor credit scores.