Is 655 a good credit score?

If you have a credit score of 655, it means you have good credit. Typically, the higher your credit score, the better your credit.

 The adverse effects of a missed payment will generally diminish over time, so you will not need to wait for seven years before seeing your credit score rise again.    

But there are still steps you can take while the clock is ticking. Consider setting up automatic payments to prevent any late fees in the future. And if this is your first late payment, contact your lender and try to convince them to remove late payments once you have brought the account back on track.   

Credit utilization rate

Your credit utilization ratio is another significant factor determining your credit score. It measures how much of your available credit you use at any moment. As you pay down your credit card debt or open new credit accounts, your credit utilization rate decreases.   

As long as you are not taking on any additional debt simultaneously, that can help boost your credit score. Of course, that’s easier said than done and applying for a new credit card could lead to a few hard inquiries on your credit report. But even if you cannot repay your entire debt at the moment, each tiny bit helps.   

A common rule of thumb is to only use under 30% of your credit at any given time, so this is a good target to shoot for. Anything higher could signal to lenders that your financial situation is a little volatile (whether or not this is really the case). Lenders like to see you positively manage your credit for an extended period. This is typically measured by the time your current credit accounts remain open. There is no quick way to improve your credit score.    

But, over the long haul, keeping an older credit card account open may help your credit age like a fine wine, even after getting a new one. 

Length of credit history

At a minimum, avoid losing any of your older credit accounts. As a person with fair credit, you might be looking at a credit card for the first time. 

If so, it pays to think long and hard. Consider shopping around for a credit card with no annual fees so you are not under any pressure to shut it down if and when you move on to a better card. You can compare offers for cards with no annual fees on Credit Karma to research your options. Many cards available for people with fair credit generally have a yearly fee, but you may be able to find one that does not. It is OK to ask for a new credit card or loan once in a while.  

But you need to realize that every application will likely trigger a hard inquiry when the creditor checks your credit. Hard questions appear on your credit report, which can impact your credit. While the impact of each tricky individual question is usually reasonably small, racking up a large number of complex questions over a short period could spell trouble for your credit. Potential lenders might interpret all of these hard inquiries as signals that you are a risky borrower.  

Credit mix

You might have heard lenders like to see a mix of loan types on your credit report. While that is true, we advise against applying for credit cards or loans that you do not need simply to boost your credit mix. The consequences of applying for credit – like a hard inquiry or new debt that you will now have to repay – can outweigh the benefits of having a more varied credit mix. So, think of this factor more as a nice-to-have than a need-to-have.    

 What credit cards can I get with a credit score of 655? 

As a person with fair credit, you can probably access a range of unsecured credit cards. Unlike secured cards, unsecured cards do not require a deposit.    

That is a benefit, but there are some other factors to consider. For instance, many of the no-fee, no-interest cards available to applicants with fair credit can come with annual fees. These cards also may have high variable purchase APRs, which could result in higher interest charges if you carry a balance rather than paying at least each month.  

Can I get a rewards credit card with fair credit?

With fair credit, you can get approved for a credit card with a relatively low credit limit–although some issuers will automatically review (and potentially increase) your credit limit after several months of on-time payments. Your credit limit is essential since it is directly related to your credit utilization rate. Can I get a rewards credit card with fair credit?. . It may be difficult for you to qualify for a cashback credit card with excellent or proper credit.    

While you might be able to find a card that gives you a limited number of cashback rewards on purchases, most rewards credit cards typically require good to excellent credit. If you are looking for the highest-rated rewards cards as an end goal, do not let this deter you. You might be surprised how good, consistent habits impact your credit score.   

And this is a good thing about credit cards. Even ones that aren’t absolutely best, help build your credit score by reporting account activity to three major credit bureaus. This information makes it into your credit report, affecting your credit score.    

So, if you are making on-time payments and following the other credit-building tips covered above, you could be in a good place to qualify for better credit cards down the road. Compare offers for credit cards with fair credit on Credit Karma to see more of your options.

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