My credit score is 510. Is this bad?
Yes, a credit score of 510 is quite weak. In this score, you cannot get new loans or credit cards without any security.
As far as I know, lenders usually see any credit score below 600 as very risky. It means you might face delays, rejections or get loans at a higher interest rate.
But relax! You can improve your score by following simple hacks. Like I suggest:
- Clear Old Dues: If you have overdue payments, try to close them as soon as possible.
- Take a Secured Loan: A small loan or credit cards backed by fixed deposits or gold can help.
- Avoid Applying for New Credits: In this score, the chances of getting new loans and credit cards are very low. So do not add a new enquiry.
- Pay on Time: Clear your existing EMIs, bills and other dues before the deadline.
- Cut Down Usage: Keep your credit card spending under 30% of your total credit limit.
- Check Your Report: Use a free credit score checker to find and fix errors.
However, if you have a debt settlement in the past, getting new loans and credit cards will be very difficult. Personally, I try to avoid this kind of situation.