3 mins read
12-Sept-2024
550 credit score - Is it good or bad?
A CIBIL Score of 550 is classified within the "Average" range, which spans from 500 to 649. This score is significantly below the national average, making it difficult to obtain credit or loans from many lenders. Individuals with a credit score in this range are often considered high risk, which may lead to higher fees or required security deposits when applying for credit cards, utility services, or loans. Approximately 16% of consumers have credit scores in this range, and 62% of them are at risk of becoming seriously delinquent, meaning they could miss payments by more than 90 days in the future.How to improve your 550 credit score?
While a score of 550 is far below the national average of 714, there are many ways to improve it. First, obtaining your CIBIL Score and reviewing your credit report can give you insight into the specific factors pulling your score down. This report outlines any negative entries, such as missed payments or high credit utilisation, that need to be addressed. By tackling these issues and forming better financial habits, such as paying bills on time and reducing debt, you will likely see improvements in your credit score.How to get beyond a very poor credit score?
A CIBIL Score in the "Average" category usually reflects a history of financial missteps, such as missed payments, defaults, or even bankruptcies. Roughly 33% of consumers with a score of 550 have had a payment that was more than 30 days late within the last decade. To begin improving your credit, it is important to review your credit reports from all 4 major credit bureaus —Experian, Equifax, CRIF and TransUnion. This will help you identify the primary issues in your credit history. By working to avoid similar financial mistakes and adopting better credit habits, you will likely see your credit score rise over time.Top of Form
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