I run a resource that helps people with their credit and I get asked this question all the time: Is 650 a good credit score? To tell you the truth, 650 isn't the greatest credit score out there and if you have a score in this range, it might be somewhat difficult to borrow money.
That said, there are different ways you can get to 650 and in some situations you can borrow money without any problems.
For example, many people who have a 650 credit score don't have any recent derogatory items.
For them, their score is down in this range because they had a lot of late payments or other derogatory items in the past.
In this situation, it will be fairly easy to borrow money.
You will have to do some explaining when you sit down with a loan officer but your score won't stand in your way.
In other situations, the items that are bringing down scores are more recent.
If you have derogatory items in the last few months, it will complicate matters and make it a lot more difficult to borrow money.
The bank will assume that you don't have your fiances under control.
They may be right.
A third situation that can lead to you ending up with a score in this range is if you are currently using a lot of your available credit.
The way you handle your existing credit accounts for almost thirty percent of your credit score.
This means that if you are operating with a lot of debt it can pull your score down in a huge way.
This alone can bring your score down to 650.
If this is the case for you, it will be very difficult to buy a home or a car from a traditional lender.
They will want to see your credit report and will see that you aren't managing your debt well.
No matter the reason for your 650 score, I would recommend doing what you can to improve it.
Borrowing money with a score in this range will be extremely expensive, even if you are able to get an approval.
To improve your score, you will need to manage your debt better.
Get your credit card debt paid off as quickly as possible.
Stop making late payments as they will affect you for seven years.
Stop buying things that you can not afford.
You'll be surprised at how quickly things will turn around.
You can make huge gains on your score within a year if you focus on it.
That said, there are different ways you can get to 650 and in some situations you can borrow money without any problems.
For example, many people who have a 650 credit score don't have any recent derogatory items.
For them, their score is down in this range because they had a lot of late payments or other derogatory items in the past.
In this situation, it will be fairly easy to borrow money.
You will have to do some explaining when you sit down with a loan officer but your score won't stand in your way.
In other situations, the items that are bringing down scores are more recent.
If you have derogatory items in the last few months, it will complicate matters and make it a lot more difficult to borrow money.
The bank will assume that you don't have your fiances under control.
They may be right.
A third situation that can lead to you ending up with a score in this range is if you are currently using a lot of your available credit.
The way you handle your existing credit accounts for almost thirty percent of your credit score.
This means that if you are operating with a lot of debt it can pull your score down in a huge way.
This alone can bring your score down to 650.
If this is the case for you, it will be very difficult to buy a home or a car from a traditional lender.
They will want to see your credit report and will see that you aren't managing your debt well.
No matter the reason for your 650 score, I would recommend doing what you can to improve it.
Borrowing money with a score in this range will be extremely expensive, even if you are able to get an approval.
To improve your score, you will need to manage your debt better.
Get your credit card debt paid off as quickly as possible.
Stop making late payments as they will affect you for seven years.
Stop buying things that you can not afford.
You'll be surprised at how quickly things will turn around.
You can make huge gains on your score within a year if you focus on it.
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