Financial Education
Understanding Your 655 Credit Score
Most credit bureaus label a credit score of 655 as “fair.” Improve it by paying off debts, managing credit utilization, and avoiding unnecessary loans like payday loans.
Consumers with this type of score may be considered a high lending risk and, therefore, may have trouble finding loans with low interest rates or favorable repayment terms. According to the credit bureau Experian, approximately 17% of consumers have credit scores that fall in the “fair” credit range.1
But how do you go about improving fair credit scores? Here, you’ll learn about the implications of having a credit score like 655 and what you can do to boost your score and start reaping the benefits of good credit!
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Key Takeaways for a 655 Credit Score
Overview of Your Rating
655 is considered fair credit. However, this score is towards the top of this range, so improvement to a good credit score is possible.
Borrowing Options
Lenders may be wary of lending to fair credit borrowers, so finding a good deal on a loan will take some research.
Improving Your Score
Consumers with fair credit can improve their scores by making payments on time, lowering credit utilization, and avoiding new debt inquiries.
Is a 655 Credit Score Good?
According to most credit scoring models, 655 is considered a fair credit score. Typically, credit scores between 580 and 669 are considered fair credit scores. And so, at 655, you are towards the top of this credit tier. By adopting healthy financial habits and keeping tabs on your budget and spending, you can improve your score to progress into the “good” credit range!
Pro Tip: Many lenders look beyond just the score. Consistent income and recent payment history can still unlock opportunities.
US Population Credit Score Distribution
25
20
15
10
5
0
300-579
580-669
670-739
740-799
800-850
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Explore financial products tailored for your current credit standing. These partners specialize in helping people rebuild.
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Personal Loans
A personal loan is a form of funding consumers can use for just about any expense, as there are products ranging from a few hundred dollars to a few thousand dollars. While interest rates and terms are usually based on the borrower’s credit history, there are personal loan lenders who specialize in providing bad credit loans.
Bank Loans
Bank loans are funding provided by a commercial or local bank. Usually, people use loans from a bank to cover large expenses. Since funding amounts for bank loans are usually higher, these kinds of institutions typically only work with very good or excellent credit consumers.
Credit Cards
Instead of getting a loan, you may also opt for a revolving line of credit. While credit card issuers will also base your interest rates and terms on your credit scores and financial history, you can bypass those interest rates by paying off your balance in full every month. When you fully pay off your credit card balance regularly, credit cards can help consumers establish credit, avoid accumulating more debt, and pay for various expenses!
Action Plan
Action Plan
Action Plan
How to Improve Your 655 Score
With a sound financial plan in place, you can start to improve your credit score so you can take advantage of all those awesome benefits! Here are a few tips on things you can do:
Try to limit applications for new credit accounts: Consider holding off on applying for new loans and credit accounts until you have a higher credit score.
Prioritize Paying Off Debt
In addition to making your payments on time, consider contributing more than your minimum amount due to save money on interest rate charges and pay off your debts faster!
Watch Your Payment History
One habit of practically everybody with a good credit score is making all their due payments on time. To avoid having late or missed payments on your credit profile, consider signing up for autopay!
Keep Credit Utilization Low
Usually, consumers with higher credit scores have a credit utilization ratio of 30% or lower.
Can I Buy a House With a 655 Credit Score?
If you are thinking of getting a mortgage with a conventional loan and have a 655 credit score, it will likely be tough. However, there are some mortgage types that offer a little more flexibility.
Mortgage Type
Description
Credit Score Requirements
Key Features
FHA Loan
Insured by Federal Housing Administration.
As low as 500 with 10% down.
Lower down payment requirements.
VA Loans
Backed by Dept. of Veterans Affairs.
Typically 620 (varies by lender).
No down payment required; no PMI.
USDA Loans
For homebuyers in rural/suburban areas.
640 for automatic underwriting.
No down payment required.
Disclosure: This table provides estimates; requirements and features can vary by lender and situation.
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