Is 650 a good credit score? A 650 credit score is considered to be in the fair range. So that being said, you just may end up paying higher rates on loans. But one thing you should however know is that your score can recover.
Is 650 A Good Credit Score
A 650 credit score as mentioned already is considered fair. Your score as you should have known helps lenders to decide on whether you qualify for products such as credit cards and loans, and what type of interest rate you should pay.
The share of Americans with a score below 650 was close to 25% as of April 2021, as per credit scoring company FICO. A 650 credit score as you should know is not considered “bad” by both FICO as well as its competitor VantageScore. Generally speaking, scores that are below 630 fall directly into the bad range.
How a 650 Credit Score Affects Your Financial Life
Well, this is easy and straightforward. As a person with a 650 credit score, you are firmly in the “fair” territory of credit. You also can usually qualify for financial products such as a mortgage or even a car loan, but you will very much likely get to pay higher interest rates than someone with a better credit score. The “good” credit range if you don’t know starts at 690.
And fortunately for you, there are quick ways to pump up your score in a bid to get better rates. With that being said, here are a couple of ways to build your credit to where you want it to be.
Ways to Build Your 650 Credit Score
Credit scores at most times change based on your activity, so this means that your 650 score can go up. Now, that being said, here are some tools to utilize in trying to build your credit.
Take Your Good Credit Habits to the Next Level
You should pay all of your bills on time and then try to use no more than 30% of the credit limit on all of your credit cards. Those are the two biggest factors that are reportedly affecting your credit score. And the less you make use of your available credit, the better it is for your score in question. You should also know that opening a new credit card that is used for one small recurring buy can also help with matters, you just have to make sure to research eligibility requirements before you apply.
Secure Credit Card
You should apply for a secured credit card, typically a type that is backed by a cash deposit.
Get a Credit Builder Loan or Secured Loan
You should visit your local credit union and then get a credit builder loan or a secured loan. A credit builder loan lets you to build your score and while saving up some money at the same time.
Ask For Help from Family and Friends
You can also ask a member of your family or a friend with a high credit score and long credit history to include you as an authorized user on their credit card. Doing this will give you an additional line of credit on your credit report.
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