When considering your financial health, your credit score holds tremendous power. Today, we will be diving deep into the realm of a specific credit score: 655. Is it good or bad? And what can you do about it? Let’s find out.

655 Credit Score: Is it good or bad?

Scores ranging from 580 to 669 are categorized as fair, and a 655 credit score sits comfortably at the higher end of this scale. It’s just about 20 points shy of being deemed ‘good.’ However, despite its “fair” status, a credit score like this could lead to challenges in getting approved for credit. Lenders might still view you as a risk, leading to potentially higher fees and interest rates.



What Makes a Good Credit Score?

A good credit score typically ranges between 670 to 739. Maintaining a score in this range means you’re generally reliable when managing and repaying your debts, making you a desirable candidate for lenders. Remember, the higher your score, the better your chances of securing credit with favorable terms.

What Factors Impact Your Credit Score?

Your credit score is more than just a number out of nowhere. It’s derived from several components:

  • Payment History: Your payment history significantly impacts your credit score. Late payments or defaults can cause your score to plummet. Your payment history accounts for 35% of your credit score, so timely payments are crucial.
  • Amount Owed: The amount of debt that you owe (and how you manage it) accounts for 30% of your credit score, so this one matters! The amount you owe compared to the available credit limit is called your credit utilization rate. Maxing out your credit card balance hints at financial stress. Be a credit all-star by keeping your debts under 30% of the available credit.
  • Length of Credit History: The longer you have had credit, the better. It shows you have experience in managing debts. Avoid closing old accounts to keep your history strong. 15% of your credit score depends on making on-time payments.
  • New Credit: If you quickly open several new credit accounts, you may appear overly eager to lenders. Avoid having too many new accounts, as this can lower your credit score. Hard inquiries appear on your credit report for two years and account for 10% of the FICO credit score calculation.
  • Credit Mix: Lenders like to know that you are an experienced money manager. The variety of credit types (revolving credit like credit cards, installment loans like auto loans, personal loans, and mortgages) you have can positively impact your score. Having a solid credit mix matters, as it accounts for 10% of your Fico score.

Can I get a home loan with a credit score of 655?

Securing a home loan with a 655 credit score can be challenging but possible. Most lenders prefer a score of 670 or higher, but several programs cater to those with lower scores. You may have to contend with higher interest rates, but buying a home with a fair score is possible.

Can I get a credit card with a 655 credit score?

There are credit cards available for any Fico credit range. Those in a good credit score range will score the best cards and interest rates, while those with fair credit scores (580-669) will may not qualify for the most competitive loan or credit card. Consider secured credit cards or a card specifically designed for people with fair scores. Or, try to repair your credit scores with each of the three major credit bureaus to improve your odds of qualifying for more favorable credit accounts.

car loanCan I get an auto loan with a 655 credit score?

Yes, it is possible to obtain an auto loan with a 655 credit score. However, you might have to settle for a higher interest rate and may not be eligible for specific incentives or discounts. It’s always wise to shop around and compare offers from different lenders. Alternatively, having a cosigner may help you secure a better deal.

Can I get a rewards credit card with fair credit?

Rewards credit cards usually require higher credit scores in the good or excellent ranges. Obtaining one with a 655 FICO score is likely to be challenging.

Tips to improve a fair credit score

Despite its challenges, a 655 credit score is not a life sentence. An average credit score can reach a good range with smart habits like making timely payments and having low credit utilization. In addition to those holistic approaches, here are some steps you can take to raise your FICO scores:

  • Get your credit reports: If you want to improve your credit, a review of your credit reports and credit history is the place to start. Go to annualcreditreport.com for free copies of your credit reports. You are entitled to one free credit report annually from each of the three credit bureaus. Or, trust who we trust- IdentityIQ is Blue Water Credit’s recommended source for credit reports, credit scores, and identity theft protection.
  • Consider Credit Repair: As a top-rated credit repair company, Blue Water Credit specializes in improving credit scores fast. We aim to remove damaging inaccuracies like late or missed payments, misreported credit limits, and more.
  • Take Out a Credit Builder Loan or Secured Card: Seek out loans specifically designed to help individuals build credit. For a fee, these loans offer the opportunity to establish credit. The lender will report your payments to the bureaus, thus increasing your score to appeal to potential lenders. Secured cards can boost your credit, provided you use them responsibly.

Check out these options: https://bluewatercredit.com/build-credit/

Auto loan rates for fair credit

Auto loan rates for fair credit can vary depending on the lender, your current financial situation, and the type of car you want to purchase. It’s best to shop around and compare offers from multiple lenders to find the best rate. Credit scores for auto loans use a slightly different system than the typical FICO scoring model of poor, fair, good, and excellent. Instead, they use a ranking system ranging from deep subprime, with scores ranging from 300-500, to “superprime” reserved for scores of 781 and up. A score of 655 is considered “nonprime” and has commanded an average APR of 8.99% for new vehicles and 13.49 as the average APR for a used car, all based on 2023 data from Experian.

Mortgage rates for fair credit

Mortgage rates for fair credit can be higher than those offered to individuals with good or excellent scores. Rates vary from lender to lender and change by the day. Current rates for those with a fair credit score of 655 are likely to pay approximately one full percentage point higher than those with excellent credit and about one percentage point less than those with poor credit.


A 655 credit score may not be ideal, but it’s far from the worst. While you may face some difficulties securing credit with favorable terms, options are still available to improve your score and achieve your financial goals. Remember that maintaining healthy financial habits, such as paying bills on time and keeping debt levels low, is crucial in maintaining a good credit score. And remember, your credit score is not set in stone – with dedication and discipline, you can improve it over time.

Credit Repair that Works

Ready to embark on your journey to a prime credit score? Don’t let a 655 credit score prevent you from achieving your financial goals. Start your credit repair process today with our proven program. We’ll guide you through the necessary steps, helping you to work on your credit habits, dispute any errors on your credit report, and build a healthier credit profile. Your path to a more prosperous financial future is just a click away. Get started today, and let’s take your credit score from 655 to prime!