The most common question I typically get about 650 credit scores is whether it’s a good or bad score. To be honest, it’s neither. A good credit score is generally one that is above 680 and a bad score is generally one that is below 620. This chart will show you more about the scale of credit scores and what scores are considered to be very poor, poor, fair, good, and excellent:
There are a lot of things that you can do with a score of 650. For the most part, you should be able to get most loans with this score. That said, not all credit reports are created equally and having a score in this range definitely doesn’t guarantee you anything.
Examples of Different Credit Situations that can Score 650
For example, let’s assume that two months ago you had an 800 credit score and have stopped paying your credit card bills. If your card balances went through the roof and late payments started showing up, you could drop to 650 in a huge hurry. In that situation, lenders would see huge red flags and in that case, it would be very difficult to get a loan. They wouldn’t really have any choice but to assume that something catastrophic happened. It looks terrible.
It would be a lot better to have a score in this range with a flawed credit report that’s been perfect for a while. This shows that things are on the rise.
This situation happened almost exactly for me. I bought a car when my score was a little under this range and I was approved because I hadn’t made any late payments for more than a year. All of my credit problems were in the past. I had some explaining to do but ultimately I was able to get a loan because I when they pulled my report, they saw that I had gotten it together. I still carried more risk than a person with 800 credit and that risk showed in my interest rate. You are never going to get the same rate with a 650 score that you could get with 800 credit.
What To Do With A Score In This Range
There’s no question that if you have a score in this range, you will want to improve it. It will help you to get better interest rates when you do borrow money and that will save you a ton in the future.
The good thing about having a credit score of 650 is that you are dang close to having really good credit. If you can improve by even 30 points it will improve your prospects a lot and once you get over 720 it will get really easy to get financing, as long as you have a job.