The spectrum of credit scores can range from 300 to 850, making a credit score of 560 just under the median of 575. You’ll face some unique challenges at this number. But even a small bump in the right direction could change the way you’re perceived by lenders and financial institutions.
If you're currently looking at a credit score of 560, you probably won’t receive the best rates. Lenders will approach your application with hesitation, skepticism, and maybe even rejection. However, don’t let this little hiccup stop you.
The only way to achieve a better status is to keep working at repairing your credit. This means finding the mortgage, loans and credit lines available to you. Then using them responsibly. You don’t have a lot of room for error at 560, so make sure you’re ready financially before trying to boost the score.
Getting in over your head will only make things worse. However, once you feel comfortable in your ability to manage credit, there are several options for increasing your score.
Is a Credit Score of 560 a Poor Score?
Generally, yes. A score below 620 is generally considered poor because banks regard you as a risky investment that is less likely to pay back on borrowed credit. However, it's important to remember that credit scores aren't permanent and there are several ways to improve them starting this year.
A low credit score can mean that you don’t have enough good credit built up, or that you are late on payments. The banks don’t personally know your honesty, your story and your reasons for a poor score. All financial institutions see is a number on a screen.
Negotiating with them here isn’t going to give you any results. You need to work on enhancing the score. That’s the best way to get better interest rates and pay less for more service.
Getting a Credit Card With a 560 Score
Usually, you won’t qualify for an unsecured credit card with a credit score of of 560. Banks don’t know or trust you yet. They can’t see how well you deal with payments and interest rates. Essentially, you don't yet have proof on paper that you're reliable enough to trust.
To kick start the credit card process, you can put down a deposit to open a secured credit card. They require this deposit to be used as collateral. That way, if you run up the card and don’t make your payment, they don’t lose out on any money.
However, getting a credit card won’t come cheap because of your poor credit score. Your rate might be higher than usual, and you’ll end up paying much more than you would if your score was in the high 650s. It will likely be higher than 10% on your card.
If you have a pending card balance of $5000, it’s possible that you end up paying $3000 or more in interest compared to someone who had a score of 700+.
Boosting Your Credit Score
When you work with the experts at USA Credit Repair, you get a fair shot of boosting your score. When you are able to raise your score, more and more opportunities will open up for you.
You can use credit to enhance your life in many ways. It can even go as far as making your work-life balance better. With reduced stress and lower credit payments, you don’t have to live in a desperate financial situation and can save your money for better things than paying back interest.
With more than 10+ years of experience, USA Credit Repair can help you improve your credit score ASAP. We have a range of options and solutions, which means there’s a lot of work we can do to solve your credit problems.