Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!
557 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 557 credit score is a foundational step on your financial journey, presenting a clear opportunity for improvement. This score falls into the 'Poor' category on the FICO scale, which simply means there's plenty of room to grow toward a healthier credit profile.
What Does a 557 Credit Score Mean?
A credit score of 557 falls squarely into the "poor" range on the FICO scale, which runs from 300 to 850. Lenders generally view scores under 580 as subprime, indicating a borrower with a higher-than-average risk. This suggests a history that may include missed payments or other financial struggles, setting you apart from consumers with healthier credit profiles.
This score significantly impacts your financial options. You'll likely encounter difficulty getting approved for mortgages, auto loans, or new credit cards. Any credit that is extended will probably come with high interest rates and unfavorable terms, making borrowing more costly. While a 557 score presents considerable challenges, it's not a permanent financial sentence and can be a foundation for future improvement.
Who Has a 557 Credit Score?
A 557 credit score is considerably lower than the average for any age demographic. According to 2023 Experian data, credit scores tend to rise with age. Here is the breakdown of the average FICO score by generation:
- Ages 18-26 (Gen Z): 680
- Ages 27-42 (Millennials): 690
- Ages 43-58 (Gen X): 709
- Ages 59-77 (Baby Boomers): 745
- Ages 78+ (Silent Generation): 760
Credit Cards With a 557 Credit Score
A credit score of 557 falls into the 'poor' credit range, which can make qualifying for traditional credit cards a challenge. Lenders often view this score as high-risk, which could result in application denials or approvals with unfavorable terms like high interest rates and low credit limits. While securing a top-tier card is unlikely, options still exist, primarily in the form of secured cards or unsecured cards designed for credit-building.
Kudos offers an AI-powered Explore Tool that helps you find the right credit card by asking about your preferences, such as low interest rates or rewards. The tool then matches your needs against its database of nearly 3,000 cards, allowing you to compare options and find the best fit for your financial situation.
Auto Loans and a 557 Credit Score
A 557 credit score places you in the subprime category, which can make securing an auto loan more challenging. Lenders view this score as higher risk, often resulting in significantly higher interest rates and less favorable loan terms.
According to an Experian market report, here are the average auto loan interest rates broken down by credit score bracket:
- Super-prime (781-850): 5.25% for new cars, 7.13% for used cars
- Prime (661-780): 6.87% for new cars, 9.36% for used cars
- Non-prime (601-660): 9.83% for new cars, 13.92% for used cars
- Subprime (501-600): 13.18% for new cars, 18.86% for used cars
- Deep subprime (300-500): 15.77% for new cars, 21.55% for used cars
Mortgages at a 557 Credit Score
While a 557 credit score is considered poor and falls below the typical 620 minimum for conventional loans, you may still qualify for a government-backed mortgage. Your most viable option is likely an FHA loan, which is available to borrowers with scores between 500 and 579, provided you can make a 10% down payment. Other programs, like VA or USDA loans, technically have no set minimum, but most lenders require scores of at least 580 to 620, making approval challenging.
A 557 credit score will significantly impact your loan terms. You can expect to face higher interest rates, which increases the total cost of the loan over its lifetime. Lenders will also require a larger down payment to mitigate their risk. For an FHA loan, this also means higher mortgage insurance premiums. Be prepared for a stricter underwriting process, where lenders will closely examine your income stability, debt-to-income ratio, and overall financial health beyond just your credit score.
What's in a Credit Score?
Figuring out what goes into your credit score can feel like trying to solve a complex puzzle, but it generally boils down to a handful of key elements. The most common factors include:
- Your history of making payments on time is the most significant factor.
- How much of your available credit you're currently using, known as your credit utilization ratio, plays a major role.
- The age of your credit accounts, including the average age and the age of your oldest account, is also considered.
- Lenders like to see that you can responsibly manage different types of credit, such as credit cards and loans.
- Opening several new credit accounts in a short period can be seen as a risk and may temporarily lower your score.
How to Improve Your 557 Credit Score
No matter your current number, improving your credit score is always possible through consistent, positive financial behaviors. Think of your 557 score not as a final grade, but as a starting point for building a healthier credit profile.
- Monitor your credit reports. Regularly checking your reports helps you find and dispute inaccuracies that could be unfairly dragging down your score. This is one of the quickest ways to see an improvement, as errors are a common reason for a low score.
- Set up automatic bill payments. Payment history is the most significant factor in your score, so paying on time is essential for rebuilding from 557. Automating payments ensures you never miss a due date and start building a positive track record.
- Reduce your credit utilization ratio. This ratio of your balance to your credit limit is the second-most important factor in your score. Keeping your utilization below 30% shows lenders you can manage credit responsibly and can provide a significant boost.
- Apply for a secured credit card. A 557 score can make it tough to get approved for traditional credit, but a secured card lets you build a positive payment history. By making a small security deposit, you can access credit and prove your reliability to lenders over time.
You can also use tools like the Kudos browser extension to help you use your cards more strategically as you work on improving your score.
Supercharge Your Credit Cards
Experience smarter spending with Kudos and unlock more from your credit cards. Earn $20.00 when you sign up for Kudos with "GET20" and make an eligible Kudos Boost purchase.
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
