532 Credit Score: Is It Good or Bad?

Oct 21, 2022 · 10 min read

At a Glance

A low credit score of 532 can tell lenders that you previously had trouble making credit payments. As a result, you might have trouble obtaining a credit card or loan without paying exorbitant interest rates until you have the chance to establish your credit.

If you want a credit card, personal loan, auto loan, or mortgage, having a credit score of 532 will make the process much more difficult. A credit score of 532 can indicate recent financial problems or a lack of credit history. Those who apply may need to pay more or make deposits on their credit cards if their credit score is 532. It will also be challenging to get approved for an unsecured credit card. When a borrower's credit score is in the "extremely bad" level, which translates to unfavorable credit, many lenders will decline to work with them.

Now that we've discussed what can occur if your credit score drops, let's delve deeper.

Is 532 Credit Score Good or Bad?

Unfortunately, a credit score of 532 is a bad credit score. FICO and VantageScore (the companies that produce the leading credit scoring models) have placed 532 in the low credit score range.

What Impacts your 532 Credit Score?

Numerous reasons may be at play in your credit score of 532. Therefore, being aware of these can help you concentrate on raising your credit score. Your credit score is affected, among other things, by:

  • Public information
  • Credit Utilization Ratio
  • Late or missed payments
  • Length of credit history
  • Total debt and credit mix
  • Recent credit activity on your account

Public Information


If your credit report reflects bankruptcies or other similar public records, your credit score can take a massive hit. A Chapter 7 bankruptcy will remain in your credit file for up to 10 years, and a Chapter 13 will stay for seven years. Even though your credit score may increase before the bankruptcy report disappears from your record, there is a high possibility that lenders might refuse to work with you because of bankruptcy billing.

Credit Utilization Ratio


To calculate the Credit Utilization Ratio on a Credit Card, you must divide the outstanding balance by the card’s borrowing limit and multiply by 100 to get the percentage. To calculate the overall utilization ratio, calculate the balances on all your Credit Cards and divide by the sum of borrowing limits. Keeping your utilization below 30% of your available credit is usually recommended.

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Late or Missed payments


Your credit score will significantly hit if you miss your credit card payment. So if you see that your credit score has fallen to 532, you should look into how many late or missed payments have happened from your end. Paying your bills consistently is the most critical thing to do to improve your credit score, as it accounts for 35% of your FICO score.

Length of Credit History


Along with other things, the length of your credit history is also a detriment to your credit score. The number of years you have been a credit user can influence up to 15% of your FICO score. NTC (New to Credit) users must be patient and careful to avoid destructive credit behaviors.

Total Debt and Credit mix


The FICO credit usually favors users with multiple credit accounts and revolving and installment credit. If you have only one kind of credit account and your credit score is 532, it might help if you broaden your credit portfolio. Remember that credit mix and total debt make up 10% of your FICO score.

Recent Credit activity


If you are someone who keeps applying for new loans and credit cards, your credit score might take a hit. Some companies trigger a check known as a hard inquiry when you apply for loans or credit cards. What happens during the hard inquiry is that the lender obtains your credit score to determine if you can get the credit line or not. Hard inquiries might drop your credit score by a few points, but it rebounds within a few months if you keep up with your credit card bills. New credit activity can account for up to 10% of your FICO scores.

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What does a Credit Score of 532 mean for your Life and Finances?

You will have trouble getting approved for credit cards and personal loans once your credit score falls into the "extremely low" category. Even if you are authorized, the interest rate will be hefty.

A credit score of 532 will have the following effects on your life:

  • You will pay higher interest rates and loan fee
  • You might face issues getting a job, apartment, and other essentials like insurance, utilities, cable, cell phone connections

Can you get a Credit Card with a 532 Credit Score?

To raise your credit score from 532, you can apply for the Azpire Credit Builder Card. Even while a credit score of 532 is considered poor, it does not necessarily mean you are committing financial death. Even if you are eligible for NTC, you can still get a secured credit card called the Zolve Azpire Card (New to Credit). Applying for this secured credit card is one of the best strategies to repair your credit.

How to Improve your 532 Credit Score?

It takes time to raise your bad credit score from 532 to fair (580-669) to good (670-739) levels. There is no short way to raise your credit score from 532 to 700, but you can take the following steps to raise your credit score from 532 to the fair or good credit score bucket instead:

  • Paying your bills on time
  • Avoiding high credit utilization
  • Debt management plan
  • Credit builder loan
  • Use a secured credit card
  • Establish a credit mix

Paying your bills on time


The holy grail of improving your credit score is to pay your bills on time. If your credit score is 532 and you are looking for ways to increase your credit score, this is the way to go.

Avoid high credit utilization rate


No matter how many accounts you have, try keeping your credit utilization to 30% to avoid lowering your credit score.

Debt management plan


If you're in trouble with your credit card bills, a debt management plan can come in handy. You need to work with a non-profit credit-counseling agency to work out a manageable repayment schedule. If this sounds too extreme, you can consult a credit counselor to improve your 532 credit score.

Credit builder loan


Multiple credit unions offer these small loans designed to help NTC users build their credit. These loans help you build credit if you maintain the stipulated payment behavior.

Apply for a secured credit card


This usually comes with a small credit limit, often only a few hundred thousand dollars, and you have to put down a deposit in the total amount of that limit. As you use this card and make regular, timely payments, the lender reports those activities to the national credit bureaus. Your credit behavior is recorded in your credit files and reflected in your FICO score.

Look no further if you want to improve your 532 credit score by applying for a secured credit card.

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What is it?The Zolve Azpire card helps you build credit using your own money. It is a credit builder card that helps you start building your credit score from the first transaction. It is available to all, even if your credit score is as low as 532.

We record every swipe of your Zolve Azpire card, and by the month’s end, we add up all the transactions for the month and report it to the bureaus so that your credit score gets built for a better financial future.

Establish a credit mix


The FICO scoring model favors users with multiple credit accounts, along with a mix of different types of loans, including installment loans like mortgages, car, and home equity loans.

It can be disheartening to see that your credit score has dipped as low as 532, but it doesn’t mean you cannot recover from it. If you plan on bettering your credit score, you have to start somewhere. Increasing your 532 credit score to the fair range (580-669) could help you access increased credit options, loans, reduced fees, and terms, along with lower interest rates.

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