A 550 credit score is not good. It is considered “poor”. You’ll have a hard time qualifying for any sort of loan that needs a credit check. If you’re accepted for an account, expect to get a much higher interest rate than you want.
The FICO credit score range is from 300 to 850, with anything below 580 deemed as poor.
Is 550 a Good Credit Score for a Mortgage?
No, 550 is not a good credit score for a mortgage. It is a terrible score. This table reveals that FICO doesn’t provide a credit score interest rate for credit scores below 620.
Mortgage Rates by Credit Score
| FICO Score | APR | Monthly Payment | Total Interest Paid |
| 760-850 | 4.786% | $2,252 | $380,873 |
| 700-759 | 5.008% | $2,310 | $401,757 |
| 680-699 | 5.185% | $2,357 | $418,590 |
| 660-679 | 5.399% | $2,414 | $439,153 |
| 640-659 | 5.829% | $2,531 | $481,154 |
| 620-639 | 6.375% | $2,683 | $535,751 |
From the MyFICO Loan Savings Calculator for a 30-year fixed loan of a $430,000 home, 5/14/22
For a home loan, an FHA mortgage is the greatest alternative for borrowers with a credit score of 550 or higher. A Federal Housing Administration (FHA) lender may take loans with credit scores as low as 500 if you make a down payment of at least 10%.
A credit score of 580 or higher is required for you to get a loan if you can’t afford to put down 10%. But if you put out some effort, you might be able to achieve that mark in a few months.
If you have a terrible credit history and your mortgage lender decides to accept your application, you’ll most likely get the highest possible interest rate. Because mortgages require such large down payments, it’s a good idea to postpone your application until your credit improves.