650 Credit Score: Good Credit Is Within Reach

It’s that special time again, where I take an in-depth look at a very specific credit score.

Today we’ll assess a “650 credit score.” Per usual, be sure to apply the associated credit score scale for proper evaluation. Otherwise you’re doing it wrong…

Assuming it’s the much more popular and widely used Fico score, a 650 credit score would put you in the “average to below average” range.

650 Fico Score Is Slightly Below Average

650 fico score

In other words, you don’t have a bad credit score, but you don’t have good credit score either. Let’s repeat that.  A 650 credit score is not good.

Fico scores can be as high as 850, and as low as 300, and the average score is around 710, so there’s definitely room for improvement.

If you have a 650 Fico score, there’s a good chance you’ve got a late payment somewhere on your credit report, or perhaps worse, a collection or a charge-off.

So be sure to verify that said accounts are truly derogatory if there are any questions regarding their legitimacy.

However, it may just be that you don’t have a deep enough credit history, and what you do have isn’t all that spectacular.

For instance, you may have one or two credit cards, and both are close to being maxed out. This could certainly land your Fico score in the “below average” range.

You don’t need to panic here, but you should certainly get your hands on a credit report ASAP to determine what the culprit is.

After all, a 650 Fico score isn’t far from being a healthy credit score, it just needs a little TLC. So be sure to get to the bottom of it sooner rather than later to avoid overpaying for any loans and credit cards you take out.

Yes, you’ll have difficulty getting approved for loans, and you’ll most certainly get stuck with higher-than-average interest rates assuming you are approved.

650 VantageScore Is Bad News

650 vantagescore

With regard to a VantageScore credit score, a 650 credit score would put you right smack in the middle of their “D” credit grade bucket.

As we all know from years of schooling, a “D” letter grade is little better than an “F,” and surely frowned upon. You’ll still need to go to summer school…

If you’ve got a 650 VantageScore, there’s a good chance you’ve got quite a few negative marks on your credit report and possibly high balances and little available credit.

That said, a credit score monitoring program may be in your future, assuming you do want to clean up your credit and get back to average or good credit score status.

It’s certainly not the end of the world, but you can and should do better, especially if you plan to apply for a major loan in the future, such as an auto loan/lease or a mortgage.

Improving your credit score from this depressed level will ensure you don’t overpay for everyday stuff like car insurance and credit cards, and make qualifying for major loans much less of a headache in the future.

Tip: How to improve your credit score.

(photo: Leo Reynolds)