A 650 credit score places you in a population of consumers whose credit may be considered Fair. It is higher than the average FICO credit score (676) but still lower than the average US credit score (675). Consumers with scores in the Fair range are more likely to become seriously delinquent and are often charged high fees and steep interest rates by lenders who focus on “subprime” borrowers. Credit scoring models consider factors such as payment history and current debt to determine how risky it is for a lender to lend to a particular borrower.
While a 650 credit score may not qualify you for some loan programs, it will definitely be able to get you an auto loan. You will also be able to obtain other loans such as student and personal. In general, a mortgage with a 650 credit score will require that you put down a larger down payment than if you had a higher credit score. You should also shop around for the best mortgage rates. A reputable financial advisor can help you find the right loan for your needs.
The best thing that you can do to improve your 650 credit score is to pay your bills on time. This is one of the most important factors that lenders look at when assessing your eligibility for a loan or mortgage. It is also wise to keep your credit utilization low. Credit utilization is the percentage of your total available credit that you are currently using. A good rule of thumb is to keep your credit utilization below 30%. If you have any errors on your credit report that need to be corrected, make sure to dispute them with the credit bureaus.
