A 540 FICO® Score is considered “Poor”. It means you’ve had past payment problems, including collection accounts, judgments, bankruptcy or worse. With a “Poor” score, it’s harder to obtain credit cards, loans, and favorable interest rates.
The good news?
Repairing your credit is one of the best ways to fix your score, and unlock the happy lifestyle you and your family deserve.
A 540 Credit Score means:
A Credit Repair company like Credit Glory can:
Give one of our friendly specialists a call today, for your FREE consultation.
Getting a mortgage and home loan with a 540 credit score is going to be virtually impossible. Can it be done? Maybe, but there’s a few simple steps you can take to guarantee less headaches and higher chance of success.
The #1 way to get a home loan with a 540 score is repairing your credit.
After a few short months of repairing your credit (with an industry leader like Credit Glory), you’ll be in a much better position to get your ideal home loan terms.
Trying to qualify for an auto loan with a 540 credit score is extremely expensive, if not downright impossible. There’s too much risk for a car lender without charging extremely high interest rates.
Even if you could take out an auto loan with a 540 credit score, you probably don’t want to.
There is good news though.
This is completely avoidable with a few simple steps to repair your credit.
Your best option at this stage is reaching out to a credit repair company to evaluate your score and see how they can fix it.
Like home and car loans, a personal loan and credit card is incredibly difficult to get with a 540 credit score.
A secured card with Discover or Capital One might be an option, but you may have to pay $500-$1000 just for a deposit. The fine print is confusing and more often than not you’ll end up in a worse situation than before you got your secured card.
You can save a ton of headache by repairing your credit and waiting a few short months until your score improves.
A 540 score means you likely have negative items on your report. Removing those negative items (or hard inquiries) is usually the quickest way to fixing your report.
We recommend speaking with a friendly credit repair expert online to help guide you through this process. Your consultation is completely free, no-pressure, and will set you on the right path toward boosting your score.
It depends where you started out.
If you had great credit starting out, this score may take some time to reach, requiring many bad marks on your credit. Three collection accounts, for example, could drop a 800 credit score well below 600.
If you started out with weak credit (for example, you don’t have any revolving accounts), a single negative mark could lower you well below the 500s.
If you want a score above 540, you’re going to have to make sure you have as little negative accounts as possible (usually meaning 1 or less), a good credit mix, an aged revolving account (such as a 2+ year old credit card), and a low revolving balance (below 30% utilization).
Work on removing all negative accounts such as collections, charge-offs, medical bills, bankruptcies, et al.
Remove as many excess hard inquiries as you can. Get your revolving utilization as low as you can (0 being best, but the general rule is below 30%). Ensure you have a good credit mix of installment loans and revolving accounts.
Last but not least, make sure you have at least two revolving accounts older than 2 years (getting added as an authorized user to a friend or family members credit card can help!)
We recommend taking a look at Credit Glory. Give them a call (833) 885-2800
It's generally much faster if you worked with Credit Glory, and they happen to have incredible customer service.
If you're looking for an auto loan with a 540 credit score, you're looking at interest rates between 14.39% and 20.45%. Qualifying for lower interest rates (& saving money) takes having a higher credit score. A credit repair expert, like Credit Glory, helps you improve your credit (& boost your score) so you qualify for a great deal on your loan.
Reclaim your financial freedom and speak with a live credit specialist for your free consultation, right now (we're here 24/7)
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