A poor credit score can be frustrating. There are five standard classifications for credit scores: extremely low, fair, excellent, and outstanding. The ways of fixing them will also vary on where they stand within these standards.
A 552 score falls under the extremely low score. It suggests a history of bad financial practices, including obtaining rulings against you, having your credit accounts sent to collectors, or have declared bankruptcy, to mention a few scenarios.
But is it that bad? And if it is, what can you do to have to raise it? If you want to know how to, make sure to keep on reading this article until the end.
What Does A 553 Credit Score Mean?
“Poor” refers to a credit score of 552 or lower. It implies that you have a history of unpaid debts, including collection accounts, court orders, bankruptcy, or even worse. Getting credit, loans, and good interest rates is more difficult if you have a “Poor” score.
A low credit score will make it difficult for you to obtain various insurance services. To raise your score, you can begin getting new credit—such as a credit card—and develop a solid credit history.
Be aware that most available loan and credit options will have high-interest rates and strict terms. It’s important to avoid signing up for anything new that could put you in a situation where your credit score is negatively impacted.
Thankfully, you can take steps to improve your low credit score.
How To Fix A 552 Credit Score?
If you want to move from a lower to a fair, or excellent credit score position, these are some ways you can do.
Ensure you have as few bad accounts as possible, a solid credit mix, an older revolving account, and a small outgoing balance. These can help you move your credit score up.
Work on eliminating bad debts, including collections, charge-offs, health care costs, bankruptcy, etc. The ideal revolving utilization is zero. However, the common norm is to keep it below 30%. Ensure you have a decent balance of revolving and installment credit.
Do not forget to have at least two rolling accounts older than two years. Obtaining authorization to use a friend’s or relative’s credit card can also be helpful.
How Lengthy Does It Take To Raise A 552 Credit Score?
The factors currently affecting your credit score will influence how long it will take to improve. Let’s say, for instance, that your credit record accurately reflects your bankruptcy. In that instance, it’s unlikely that the adverse item would be removed for seven years, and any credit recovery would be gradual.
In contrast, if a mistaken unfavorable entry on your account is the cause of your low credit score, the score may start to rise relatively immediately once the mistake is fixed.
It is frustrating to have a deficient credit score as it would reveal your financial situation making it hard to avail of loan services. But don’t be discouraged. However, there is no shortcut to getting your way up to a high credit score. Make sure to work on and follow the abovementioned methods. Be consistent in paying your bills and asking for help from a credit score counselor or credit repair company.