Is 555 a Good Credit Score?

By Lauren Ward

Wondering if a 555 credit score is good or bad? Unfortunately, this number falls into the lowest FICO® credit score range, but that doesn’t mean you won’t be able to qualify for any type of financing. While you may experience higher interest rates and fees and larger down payment requirements, there are still some ways you can borrow the funds you need.

Here’s everything you need to know about a 555 credit score.

What Does a 555 Credit Score Mean?

A 555 credit score means you likely have a credit history with negative items, such as late payments, accounts in collections, or large outstanding debt balances. And while FICO Scores range from 300 to 850, 555 is considered to be “poor.” It’s the lowest rating out of five possible categories:

•   Poor: Less than 580

•   Fair: 580-669

•   Good: 670-739

•   Very good: 740-799

•   Exceptional: 800+

FICO Scores are used in the majority of lending decisions in the U.S., so it’s good to know where your score stands in their range. But that doesn’t mean it has to stay there.

How Can I Increase My Credit Score?

It’s possible to overcome bad financial decisions and start repairing your score. After all, it only takes a 25-point increase to jump to FICO’s “fair” category. And while it takes time to build up your credit score, the effort is worth it. A higher score can help boost your odds of being approved for a wider range of financial products and more flexible rates and terms.

Here are some strategies to try:

•   Pay your bills on time, every time. Timely payments are the top factor FICO considers when calculating your credit score.

•   Pay down existing debts. Lenders may see a large balance as a sign that you could have difficulty making monthly payments.

•   Keep older accounts open. Doing so can add to the length of your credit history, which impacts your credit score.

When used responsibly, loans and credit cards can also help you build your credit and start moving the needle on your 555 credit score. If your credit score is low, you’ll have an easier time applying for a secured credit card or being added as an authorized user on the account of a loved one with good credit.

If you have multiple high-interest credit card balances, you may want to look into using a lower-interest option, like a credit card consolidation loan, to pay them off. These loans typically have a better interest rate than a credit card, which could make it easier to knock out debt.

What Else Can You Get with a 555 Credit Score?

Even with a 555 credit score, you can still qualify for different types of financing. But the lenders that will approve your application may be limited, and the terms you’re offered won’t likely be as favorable as they would be if you had a higher score.

Learn about common types of financing and what to expect when you apply with a credit score of 555.

Can I Get a Credit Card with a 555 Credit Score?

There’s no minimum credit score required for a credit card. However, with a 555 credit score, you could have a difficult time getting approved for a card. The ones you’re offered may be through a lender that specializes in bad credit, which often come with high interest rates.

As we mentioned, it may be easier to qualify for a secured credit card. This type of card requires you to put down a deposit, which is usually the same amount as your available line of credit. So if you get a secure credit card with a $300 limit, you have to deposit $300 in advance. Then you can make purchases with the card and get your on-time bill payments reported to the credit bureaus. Over time, you may qualify for a traditional credit card and get your deposit returned.

Can I Get an Auto Loan with a 555 Credit Score?

Because the vehicle is used as collateral with a secured auto loan, there’s a chance you may get approved for auto financing even with bad credit. Still, you should expect to pay more in interest.

Borrowers with a 555 credit score are offered an average auto loan interest rate of 13.18% on new vehicles and 18.86% on used vehicles, according to 2024 data from Experian. Borrowers with a score of 781 or above, on the other hand, will pay just 5.25% interest on a new car loan and 7.13% on a used car loan.

It’s possible to qualify for better loan terms — and lower your monthly payments — if you make a larger down payment on your vehicle. Or you can explore adding a cosigner to the loan. You’ll both be on the hook for repaying the money, but the cosigner doesn’t own your car.

Can I Get a Mortgage with a 555 Credit Score?

Is 555 a good credit score for a mortgage? There are challenges you’ll need to overcome, but it is possible. Typically, the average credit score needed to buy a house is 620, especially if you want to apply for a conventional loan.

Instead, you may want to explore FHA loans, which have more flexible credit requirements. The catch? With a 555 credit score, you’ll need to make a 10% minimum down payment. (If you can build your credit score to at least 580, you’ll only need to put down 3.5%.)

Two other types of loans, VA loans and USDA loans, generally require a credit score in the 620-640 range, among other criteria. That said, some lenders may consider a borrower with a lower score, but your application might go through additional financial scrutiny.

Can I Get a Personal Loan with a 555 Credit Score?

Many lenders prefer borrowers to have a credit score of at least 600-640, but you may find personal loans with a 555 credit score. Keep in mind that it will likely come with a high interest rate and less-flexible terms. Compare offers with a personal loan calculator to make sure you can afford the monthly payments.

The Takeaway

Is 555 a good credit score? Unfortunately, it’s considered below average. You may still be able to get approved for certain credit cards and loans, but you’ll likely face higher interest rates and could be required to provide collateral.

But remember: Your credit score isn’t permanent. With a few strategic moves, such as paying bills on time and keeping balances low, you could help boost your score to a higher category — and lower your borrowing costs.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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