Have a Credit Score of 650? Find Some Contributing Factors Here

Find details regarding what goes into a 650 credit score here. The basic purpose of a credit score is to ensure to lenders that you can be trusted.

A credit score of 650 rating is at the fair tier rating. This is just twenty points away of making it to the 670 score to qualify for a good credit limit.

Attaining a good credit score is essential as it will open up a wide range of opportunities such as saving on car insurance, getting certain jobs or even buying a home.

If you’d like to know the precise things affecting your credit score, you can check it out here.

Here, you will get a list affecting your individual score. This article will be looking at the factors affecting your 650 credit score and how you can improve your ratings.

Having a credit score of 650

credit score of 650


Factors that Affect your Credit Score

If you want to improve your credit score of 650 rating, you need to comprehend the factors below:

[1] – Payment History

Repayment of loans on the stipulated date and paying off your credit will have a positive impact on your 650 credit score. Late payments, missing payments and repaying less than the minimum amount are all the things that can affect your credit score negatively.

[2] – Utilization of Credit Rate

It is important to minimize your credit utilization rate. This can be done by ensuring that it is below 30%. Your credit utilization rate can be improved by paying off the balances of your credit card.

[3] – Total Debt

Large sums of debt (i.e. loans and credit card balances) can affect your credit score negatively.

[4] – Credit History and Mix

Your credit score is reached at by looking at the kind of debt you have and how long you’ve had it for. You can improve your credit score by using a number of credit accounts for an extended period.

[5] – Public Information

Information such as civil judgements, bankruptcies and tax liens is usually out in the public for all to see. This information can also show up on your credit report and negatively affect the score of your credit.

[6] – Hard Inquiries

Once you apply for new credit, hard inquiries may appear on your credit report. These hard inquires may affect your credit score negatively.

How to Deal With Negative Information on Your Credit Report

The first thing to do when transforming your credit report is to ensure that all the information that appears on it is true. If there is any information that is not true, this can be rectified by filling a dispute.

If the negative information that appears on your report is true, you will not be able to remove it until the day it phases off. All is not lost as you can work on doing away with the bad habits that led to the negative information appearing on your report.

Below are some of the things you can do to improve your credit score:

  • Though you may not be able to delete a late payment, you can ensure that any account that is overdue is made current. This will go a long way on improving your credit score.
  • Ensure that you make payment for any court judgments or tax lien according to the procedures laid down for repayment.
  • Collaborate with legitimate creditors and collection agencies to clear your name on any action that is against you.
  • Desist from trying to get new avenues of credit until your credit record improves.
  • Ensure that all your other bills such as student loans, bank loans and credit card loans are paid on time.

Finally

You can rest in the comfort that in time all the negative information will be extracted from your credit report and hence will not affect your credit score.

In the meantime, the only thing you can do is follow all the tips mentioned above. Within no time your credit score will get better and then you will be able to access better terms and interest rates.

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