credit score 530 is considered to be a bad credit score.It
means that you have been very irresponsible in managing your credit in the past
. credit score 530 indicates your weak financial health. credit score 530 is an
indication of a lot of negativity in your credit history.
It will take a lot of time in bringing it up to a decent
score to get approval for loans from lenders at reasonable rates of interest. The
chances of getting a loan on the basis of this credit score are very low.Even
if you do get a loan on the basis of 530 credit score the rate of interest will
be very high..In other words you will end up overpaying for your loans
The main reasons that could be behind your bad credit score
are”
Late payments-You
have not been making your payments on time.a low or poor credit score
could be due to a few late payments made by you which affected your payment
history badly.
High outstanding balabces is another main reason for low
credit score.When your outstanding
balances are above 35% of your available credit limit,it negatively
affects your credit score.The higher the percentage goes the further down your
credit score will go.
This credit score also means that there might be a
foreclosure or bankruptcy in your credit history.
You need to take some serious action to repair your credit
score and boost it to a decent score
Ways in which you can improve your credit score
The first thing that needs to be done is procure a copy of
your credit report and go over it very minutely for any errors and take
measures to correct them.Try to review your credit report at least twice a
year.
Start making payments that are overdue or above 35% of your
total available limit to come out of debt.Try to bring it down to 5% of your
total available limit.This will have a very positive effect in improving your
credit score.
Don’t apply for any more credit.
Make regular and ontime payments of your bills.Try to keep a
clean payment history .
Request your lenders for a better rates of interest on your
loans.
It will take time to boost your credit score .Keep patience
and try to work at it from a long term prospective.
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