What is a 650 Credit Score? Take a Look at What Goes Into Your Score

Learn what a 650 credit score is and how lenders view this rating. Also, find ways to raise your score for more affordable rates when borrowing.

What is a 650 credit score? A credit score can be described as the number that’s used when rating the creditworthiness of an individual.

This means that it indicates the level of trustworthiness that lenders perceive a person to be with their money.

Usually, the credit score is calculated using the data in an individual’s credit history.

There are several factors that are considered when calculating credit scores. The main ones are Credit Mix, New Credit, Length of Credit History, Amounts Owed and Payment History.

Credit score is also known as FICO score.

What is a 650 credit score?

what is a 650 credit score
Credit score is mostly utilized by lending agencies in making the decision of whether to lend an individual money or not. This is because it’s considered to be an effective indicator of financial risk.

This means every time someone applies for a personal loan, mortgage, a credit card etc. it’s the credit score that’s used to make the decision to approve.

FICO credit score range

The scale of measuring credit scores lies in the range of 300 – 850. Essentially, 300 is the worst score while 850 is the best.

It should be noted that various lenders will employ different criteria in the interpretation of credit score. For instance, there are industry specific credit scores for auto loans and insurance companies. Either way, the following are some basics regarding scores:

  • 300 – 579 – This is bad credit hence most lenders would consider such a person to be of high risk.
  • 580 – 669 –  This is the fair/average score range because the borrower is not considered to be a high credit risk.
  • 670 – 739 – This range is a good credit score range. This is mostly because lenders will be willing to give you money easily.
  • 740 – 799 – This is a very good credit score as it indicates those in excellent financial shape.
  • 800 – 850 – This range of credit score is termed as excellent/exceptional. It’s the best with regard to credit scores. Lenders will always be willing to lend people with such credit scores money.

What is a 650 credit score? – ways to improve

There are several ways of improving a credit score of 650, the notable ones are as follows:

[1] – Pay on time:

Perhaps this is the most vital ingredient in determining credit scores. This is why you should pay on time and establish a good track record of being a responsible borrower. It’s also good to note that just one late payment can tarnish your good credit report.

[2] – Decrease utilization:

It’s best not to use more than 30% of available credit on your card every month. This can be achieved by spending less and making multiple payments on a monthly basis.

[3] – Pay off collection accounts:

Try to reduce collection accounts balance to nil so that it stops influencing your credit score.

[4] – Dispute negatives:

This simply means that if one can prove that information on their credit report is false, it can either be removed or corrected.

Use any of the above to improve the credit score of 650.

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