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655 Credit Score: Is It Good Or Bad (+ Can I Fix It)?

  • A 655 credit score is considered fair and limits financial options.
  • To improve your score, focus on timely payments and reducing credit utilization.
  • Contact The Credit Pros for guidance tailored to your situation to potentially improve your score and enhance your financial future.

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A 655 credit score sits in the "fair" category, limiting your financial options. Late payments, high credit utilization, and a short credit history often cause this score. To boost it, focus on making on-time payments, keeping credit card balances below 30%, and checking your credit report for errors.

Improving your score by 100-150 points can take a few months to a couple of years, depending on your habits. Stay patient and dedicated to reducing debt and diversifying your credit types. If you’re unsure where to start, give The Credit Pros a call.

We’ll have a no-pressure chat to evaluate your credit report and guide you based on your unique situation. Let us help you take control of your credit health and unlock better financial opportunities!

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    Why Is My Credit Score Only 655?

    Your credit score is only 655 for several reasons. This score is in the "fair" range, which can make lenders view you as a higher risk. Here are the main factors affecting your score:

    • Payment History: If you have late or missed payments, they can significantly lower your score. It’s vital that you make on-time payments consistently.

    • Credit Utilization: Using too much of your available credit negatively impacts your score. Keep your credit utilization below 30% to improve your standing.

    • Length of Credit History: A shorter credit history generally results in a lower score. Keeping older accounts in good standing will help boost your score.

    • Credit Mix: Having diverse types of credit, like credit cards and loans, can enhance your score. A limited mix might hold your score back.

    • New Credit Applications: Multiple hard inquiries from applying for new credit can decrease your score. Space out your applications to avoid this issue.

    Improving your credit score requires time and effort. Focus on these areas and work to enhance them. You might consider tools like secured credit cards or credit builder loans to help raise your score over time. To wrap up, prioritize timely payments, manage your credit utilization, and diversify your credit types to effectively boost your score from 655.

    5 Best Ways To Boost A 655 Credit Score?

    To boost your 655 credit score, you can take these five effective actions:

    • Make On-Time Payments: Your payment history is critical. Always pay at least the minimum amount due on time. Set up autopay or reminders to stay consistent.

    • Reduce Credit Utilization: Aim to use less than 30% of your available credit. This ratio affects your credit score significantly. Pay down balances or make multiple payments throughout the month to keep your utilization low.

    • Pay Down Existing Debt: Focus on systematically paying off debts, starting with high-interest loans. Reducing your total debt can notably improve your score.

    • Limit New Credit Applications: Each credit application prompts a hard inquiry, which can temporarily lower your score. Be strategic and apply only when necessary.

    • Check Your Credit Report: Regularly review your credit report for errors. Dispute any inaccuracies you find; correcting these can help elevate your score.

    On the whole, by consistently making on-time payments, reducing your credit utilization, paying down debt, limiting new applications, and checking your credit report, you can improve your credit score and achieve your financial goals.

    Major Factors That Keep My Fair Credit Score Low?

    Major factors that keep your fair credit score low include:

    • Payment History: Your on-time payments impact your score significantly, making up 35% of your total. Late payments, defaults, and missed payments can severely damage your credit. You should aim to pay all bills on time consistently.

    • Credit Utilization: This factor accounts for about 30% of your credit score. It measures how much of your available credit you are using. Keep your credit utilization below 30% to avoid signaling that you overly rely on credit, which lenders view unfavorably.

    • Length of Credit History: A shorter credit history can affect your score negatively. Lenders prefer to see a longer track record of responsible credit management.

    • Credit Mix: Having a variety of credit types, like credit cards, installment loans, and mortgages, can improve your score. A diverse mix shows you can manage different credit responsibilities effectively.

    • New Credit Inquiries: Opening multiple new credit accounts within a short time can signal risk to lenders and negatively impact your score.

    To improve your score, focus on enhancing these areas. By consistently maintaining a good payment history and managing your credit utilization wisely, you can work towards raising your credit score into the good range.

    Bottom line: Pay your bills on time, keep your credit utilization low, and diversify your credit types to help boost your fair credit score.

    How Long To Improve My 655 Credit Score 100-150 Points?

    Improving your 655 credit score by 100-150 points can take a few months to a couple of years. The timeline varies based on specific factors affecting your score.

    To see quicker results, focus on specific issues. If high credit utilization drags down your score, lower your credit card balances. Aim to use no more than 30% of your available credit. By paying off debt and maintaining low utilization, you can see noticeable improvements within 30-90 days.

    If your score suffers from late payments, the recovery time may extend. Consistently paying your bills on time is vital. Every on-time payment positively influences your credit history, but repairing a score with multiple late payments may take several months.

    Regularly check your credit report for errors, and dispute inaccuracies. Fixing these mistakes can lead to quicker improvements. The more proactive you are in managing your credit, the faster you’ll notice progress. Remember, everyone's situation is unique, so patience and commitment to good financial habits are essential.

    In a nutshell, to improve your score: reduce credit utilization, pay bills on time, and correct any credit report errors. Stay focused on these actions for the best results.

    Inaccuracies hurting your Credit Score?
    Securely review your full 3-bureau Credit Report (with a real expert).

    By clicking ‘Get Started’ I agree by electronic signature to: (1) be contacted by The Credit Pros by a live agent, artificial or prerecorded voice, and SMS text at my residential or cellular number, dialed manually or by autodialer even if my phone number is on a do-not-call registry (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

    Can I Realistically Get A Mortgage With A 655 Credit Score?

    You can realistically get a mortgage with a 655 credit score. This score is considered "fair" and generally meets the minimum requirements for various loans, including conventional mortgages. Lenders typically look for a credit score of at least 620 for conventional loans. Government-backed loans, like FHA, may allow credit scores as low as 580, so your 655 score is sufficient for those options as well.

    However, a 655 credit score may lead to higher interest rates and less favorable loan terms. Lenders see you as a higher-risk borrower, making strong qualifications like steady income and low existing debt essential.

    You should prepare for the possibility of needing a larger down payment to improve your chances of approval and show your reliability. It's also wise to compare offers from multiple lenders, as their criteria can vary.

    To enhance your mortgage options, consider improving your score before applying. For effective strategies to raise your credit score, check our section on the best ways to boost a 655 credit score.

    All in all, focus on boosting your credit score, gather strong financial qualifications, and explore loan options to increase your chances of securing a mortgage.

    Can I Get A Personal Loan With A 655 Credit Score?

    Yes, you can get a personal loan with a credit score of 655. This score is in the "fair" range, which means you may qualify, though the terms might not be as favorable as those for higher scores.

    Lenders have different requirements. Some approve loans for scores as low as 580, but you will likely face higher interest rates and less favorable terms. To enhance your chances, consider these steps:

    • Check your credit report for errors. Dispute inaccuracies to potentially raise your score.

    • Pay down existing debts. A lower credit utilization ratio improves your score and looks favorable to lenders.

    • Make all payments on time. Timely payments boost your credit history.

    • Assess your financial needs before applying. Only request what you can comfortably repay.

    • Approach lenders where you have an existing relationship. They may be more lenient based on your history with them.

    If traditional lenders decline your application, explore alternative lending platforms that cater to people with moderate credit scores. These options may offer better terms than traditional banks.

    Additionally, some lenders provide personal loans secured by collateral, or you can consider a co-signer with better credit to improve your chances of approval.

    The gist of it is that you can secure a personal loan with a 655 credit score by checking for errors, managing debts, and considering alternative lending options. Don't lose hope; take proactive steps to improve your chances!

    Can I Buy Or Lease A Car With A 655 Credit Score?

    Yes, you can buy or lease a car with a 655 credit score. However, expect some limitations. Financing a car with a score of 655 generally falls into the subprime category, which often leads to higher interest rates compared to borrowers with better scores.

    When purchasing a car, most lenders prefer credit scores above 660, but many will approve loans for those with a 655 score. Prepare for higher monthly payments and possibly a larger down payment. Demonstrating a stable income and good employment history can improve your chances.

    For leasing, the average credit score needed is around 729, but many dealerships accept scores as low as 620. With a 655 score, leasing is an option, but you may encounter higher interest rates and less favorable lease terms. To strengthen your application, consider:

    • Paying down existing debts
    • Maintaining a low credit utilization ratio
    • Showing a responsible credit history

    Remember, your overall financial picture, including your debt-to-income ratio, will also be evaluated. You can enhance your approval odds by managing your finances well. Buying or leasing is possible with a 655 credit score, but be ready for stricter conditions and increased costs.

    Credit Card (Secured Or Unsecured) Options With A 655 Credit Score?

    If you have a credit score of 655, you can find both secured and unsecured credit card options. Here are the best choices for you:

    • Secured Credit Cards: These cards require a cash deposit as collateral. A popular option is the Capital One Platinum Secured Credit Card, which needs a refundable security deposit as low as $49 for a $200 credit limit. This card helps you build credit while using a credit card responsibly.

    • Unsecured Credit Cards: These cards do not require a deposit. The Citi Double Cash® Card is a great choice, offering 2% cash back on purchases with no annual fee. It reports to credit bureaus, helping you improve your score over time.

    • Store Credit Cards: You might consider applying for a store credit card from retailers you frequently visit. These cards often have lower credit requirements and can boost your credit with responsible usage.

    When you look for credit cards, review the terms and conditions carefully, especially the fees. With a score of 655, aim for cards with low fees and good rewards to enhance your credit-building journey.

    At the end of the day, you have options. Focus on secured cards or the Citi Double Cash® Card, and consider store credit options. Improve your score over time, and you'll access even better cards in the future.

    Inaccuracies hurting your Credit Score?
    Securely review your full 3-bureau Credit Report (with a real expert).

    By clicking ‘Get Started’ I agree by electronic signature to: (1) be contacted by The Credit Pros by a live agent, artificial or prerecorded voice, and SMS text at my residential or cellular number, dialed manually or by autodialer even if my phone number is on a do-not-call registry (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

    Should I Become An Authorized User With A Fair Credit Score?

    Becoming an authorized user on a credit card can be a smart move, especially if you have a fair credit score. You can potentially see an improvement in your credit score, often by nearly 11%, shortly after being added as an authorized user. This boost happens because the primary account holder's positive credit history can influence your credit report.

    Choose the right primary account holder carefully. If they have a good credit history-like paying bills on time and maintaining low credit utilization-you benefit the most. On the other hand, if they have poor credit habits, their negative actions might harm your score.

    Make sure the card issuer reports authorized user activity to credit bureaus. Some issuers do not report this, which means you might miss out on any improvements to your credit score. If they do report, your credit utilization ratio could improve, which is vital for elevating your score.

    Lastly, if you pick a responsible primary account holder and verify the reporting practices, becoming an authorized user can significantly enhance your credit score.

    Which Negative Marks On My Credit Report Affect My 655 Score?

    Negative marks on your credit report directly impact your 655 credit score. Here are the primary negative marks that affect your score:

    • Missed Payments: Missing a payment by 30 days or more results in a late payment mark. This can stay on your credit report for up to 7½ years and significantly lowers your score.

    • Account Charge-Offs: When a creditor charges off your account, it means they believe you won't repay your debt. This mark remains for 7 years.

    • Collections: If your account goes to collections, it has a serious negative effect. These marks also remain for 7 years.

    • Bankruptcy: Filing for Chapter 7 bankruptcy stays on your report for 10 years, while Chapter 13 bankruptcy remains for 7 years.

    • Foreclosures: Losing your home to foreclosure leaves a mark for 7 years.

    • Repossessions: If a lender repossesses an item you financed (like a car), this mark stays for 7 years as well.

    Understanding these negative marks helps you manage your credit better. To improve your score, ensure you pay your bills on time and bring past-due accounts current. You can also dispute inaccuracies and monitor your credit report.

    Finally, take charge of your credit health by making timely payments and addressing any negative marks on your report. Your proactive steps can lead to a better credit score.

    Should I Negotiate And Pay Off Debts To Improve My Fair Credit Score?

    You should negotiate and pay off debts to improve your fair credit score. Negotiating can help you settle for less than you owe, but be cautious-debt settlement might negatively impact your credit. Your accounts could be reported as "paid settled," which is less favorable than "paid in full."

    If you can afford to pay off debts in full, this option is generally best for your credit score. Accounts marked "paid in full" show your ability to meet obligations completely, which boosts your score over time.

    Settling debts can lower your credit utilization ratio, an important factor for your score. However, missed payments often cause drops in your score. Addressing paid debts can help you avoid further damage.

    If you decide to settle, we advise you to negotiate directly with your creditors instead of using a debt settlement company. This approach avoids extra fees and less severe impacts on your credit. Stay current on any remaining debts and keep communication open throughout the process.

    Big picture-prioritize negotiating or paying off debts to improve your credit. Consider full payments for better results and negotiate directly for less stress and potential fees.

    Best Site To Monitor My Credit Report?

    For monitoring your credit report, the best site is Experian. You can check your credit report and FICO Score for free, viewing your report every 30 days. This site helps you monitor changes and identify factors affecting your score. Plus, Experian alerts you to potential fraud and identity theft, which maintains your credit health.

    Another excellent option is Credit Karma. You can track your credit score for free and gain insights into what impacts your score. Credit Karma uses VantageScore, which may differ from your FICO Score but is useful for spotting trends over time.

    Be sure to visit AnnualCreditReport.com as well. This site, authorized by federal law, gives you one free credit report per year from each of the three major bureaus: Equifax, Experian, and TransUnion. Utilize this resource to get a comprehensive overview of your credit history.

    Overall, we advise you to utilize these sites to keep a close eye on your credit report. Monitoring your credit helps you spot errors, track improvements, and protect your identity effectively.

    Inaccuracies hurting your Credit Score?
    Securely review your full 3-bureau Credit Report (with a real expert).

    By clicking ‘Get Started’ I agree by electronic signature to: (1) be contacted by The Credit Pros by a live agent, artificial or prerecorded voice, and SMS text at my residential or cellular number, dialed manually or by autodialer even if my phone number is on a do-not-call registry (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

    Should I Consider A Credit Builder Loan W/ Fair Credit?

    You should consider a credit-builder loan with fair credit to improve your credit score. These loans are designed for individuals with limited or low credit histories.

    With a credit-builder loan, you make fixed monthly payments that lenders report to credit bureaus. Timely payments can boost your credit score, as payment history affects 35% of your score.

    You often find it easier to get approved for these loans since lenders focus on your income and employment history rather than a high credit score. This flexibility helps you build a positive payment history, which is vital for improving your overall credit profile.

    Be cautious, though. Missing payments can hurt your credit score, so ensure the loan payments fit comfortably within your budget. Opt for a loan with manageable monthly payments to lower the risk of late payments.

    Additionally, you might explore alternatives like secured credit cards, which can also enhance your credit score.

    As a final point, if you can commit to on-time payments, a credit-builder loan can be a beneficial step toward improving your credit score.

    Is A 655 Credit Score Different Between Fico And Vantage

    Yes, a 655 credit score can differ between FICO and VantageScore. Both scoring models range from 300 to 850 but use different criteria to calculate your score. This discrepancy means your score might vary slightly between each model.

    FICO scores place more emphasis on factors like payment history and amounts owed. In contrast, VantageScore may consider a broader range of credit behaviors, particularly for those with limited credit history. Depending on your specific credit situation, you may observe differences in your scores.

    A 655 score typically falls into the 'fair' credit category on both models. This range can limit your options for loans, credit cards, and other financial products. If you're curious about how your scores may impact specific situations, like obtaining a mortgage or a car loan, refer to our sections on those topics for a deeper understanding.

    To put it simply, knowing the differences between FICO and VantageScore helps you manage your credit profile and improve your score effectively over time.

    Does A 655 Credit Score Affect My Chances Of Renting An Apartment?

    A 655 credit score can affect your chances of renting an apartment. Generally, a score of 650 is the minimum to be a competitive applicant in most rental markets. Many landlords prefer scores above 650, as this indicates a fair credit history.

    However, your credit score isn't the only factor landlords consider. They often review your entire credit report for red flags, such as late payments or evictions. If you have a stable income or a good rental history, those factors could help counterbalance a lower score.

    In competitive areas, you may need a higher score to secure a rental. Some landlords enforce stricter requirements in high-demand markets, while others may be more lenient, especially in less competitive regions.

    In short, a 655 credit score places you at the borderline for renting. You improve your chances by providing proof of financial stability, like consistent income or a strong rental history. If your score raises concerns, consider offering a larger security deposit or finding a co-signer to strengthen your application.

    Can A Credit Repair Company Actually Boost My 'Fair' Score

    Yes, a credit repair company can potentially boost your 'fair' credit score, but results depend on your unique situation. Legitimate companies can help you by addressing inaccuracies on your credit report. They dispute incorrect information with credit bureaus, which can improve your score if they succeed. However, if your credit report contains accurate negative details, there's little a credit repair company can do for you.

    Be cautious with these services. Some companies may promise quick fixes for a fee, but always verify their legitimacy to avoid scams. You have the right to dispute errors on your credit report yourself at no cost.

    If you choose to use a credit repair service, consider the potential benefits against the costs and risks. Improving your credit score independently by making on-time payments and managing your credit utilization may be more effective long-term. Remember, even the best repair companies cannot guarantee a specific increase in your score.

    To finish, explore all your options, and be proactive in addressing inaccuracies on your credit report while managing your credit responsibilities. You have the power to improve your financial standing.

    Inaccuracies hurting your Credit Score?
    Securely review your full 3-bureau Credit Report (with a real expert).

    By clicking ‘Get Started’ I agree by electronic signature to: (1) be contacted by The Credit Pros by a live agent, artificial or prerecorded voice, and SMS text at my residential or cellular number, dialed manually or by autodialer even if my phone number is on a do-not-call registry (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

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