Increasing your credit score can seem overwhelming and you might even think it’s next to impossible. But you don’t have to settle for a low credit rating, even though with a credit score of 530, you have some work ahead of you to improve your rate.
Luckily, there are practical steps you can take to help raise your credit score. Let’s take a look at what you can expect with a credit score of 530 when it comes to credit cards and loans — and what you can do to boost your credit rating.
Credit Score of 530: Credit Cards
Attempting to get a credit card with a credit score of 530 can be difficult. You might be lucky enough to get approved, but you can expect to pay higher interest rates. You might also have to put down a deposit before receiving your credit card.
Another option you could take is getting a secured credit card with a reputable company. You’re required to put money down in advance, but it’s a great opportunity to easily build your credit score, and it can help you to make smarter financial choices.
Credit Score of 530: Auto Loans
With a credit score of 530, you can expect to pay a pretty high annual percentage rate (APR) on an auto loan. You might have to provide a large down payment and the dealership could even require you to have a co-signer for added security.
There’s the option of going to a “buy here, pay here” car dealership, but that doesn’t do anything to help build your credit. Plus, the amount you end up paying will be substantially higher than if you were to obtain a traditional auto loan.
Credit Score of 530: Home Loans
Buying a home with a credit score of 530 can be challenging. The Federal Housing Administration (FHA) offers loans with a 3.5% down payment to those with a credit score of 580 or more. If your credit score is lower than that, it increases to 10% for an FHA home loan.
For example, if you wanted to buy a $140,000 home with a credit score of 530, your down payment would be $14,000. With an increase of 50 points to your credit rating, it would go down to just $4,900. Talk about a great reason to build your credit!
How to Improve a Credit Score of 530
Now that you know what to expect with a credit score of 530, you’re probably wondering how you can improve your financial life by increasing it, right?
What you need is a simple, straightforward approach that gives you the opportunity to make small changes to improve your credit over time, and begin taking the right steps toward total credit recovery.
You don’t have to tackle credit repair on your own! Give us a call today at 1-866-991-4885 to learn more about one of our affordable credit repair programs, and we’ll help guide you down the road to better credit in no time.