650 Credit Score: Is It Good or Bad? - NerdWallet (2024)

A 650 credit score is considered fair. Your score helps lenders decide whether you qualify for products like credit cards and loans, and what interest rate you should pay.

The share of Americans with a score below 650 was 24% as of April 2023, according to credit scoring company FICO. A 650 credit score is not considered "bad" by both FICO and its competitor VantageScore. Generally speaking, scores below 630 fall into the bad range.

Here’s how a 650 credit score can affect your financial life.

With a 650 score, you may pay higher rates than others

As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

Fortunately, there are quick ways to pump up your score to get better rates. Here are a few ways to build your credit to where you want it to be.

Ways to beef up your 650 credit score

Credit scores change often based on your activity, so your 650 score can go up. Here are some tools you can use to build credit:

  • Take your good credit habits to the next level: Pay all your bills on time and try to use no more than 30% of the credit limit on all your credit cards. Those are the two biggest factors affecting your credit score. The less you use of your available credit, the better it is for your score. Opening a new credit card that's used for one small recurring purchase can also help, just make sure to research eligibility requirements before applying.

  • Apply for a secured credit card, a type of card that's backed by a cash deposit.

  • Visit your local credit union to get a credit-builder loan or secured loan. A credit-builder loan allows you to build your score and save up some money at the same time.

  • Ask a family member or friend with a high credit score and long credit history to add you as an authorized user on their credit card. That gives you an additional line of credit on your credit report.

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650 Credit Score: Is It Good or Bad? - NerdWallet (2)

650 Credit Score: Is It Good or Bad? - NerdWallet (2024)

FAQs

650 Credit Score: Is It Good or Bad? - NerdWallet? ›

Visit your My NerdWallet Settings page to see all the writers you're following. A 650 credit score is considered fair. Your score helps lenders decide whether you qualify for products like credit cards and loans, and what interest rate you should pay.

Is a credit score of 650 OK? ›

A FICO® Score of 650 places you within a population of consumers whose credit may be seen as Fair. Your 650 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.

Can I get a bank loan with a 650 credit score? ›

Typically, the minimum credit score for personal loan approval is 610 – 640. The best credit score for a personal loan with good rates and terms, though, is most often 650 or higher. Each personal loan gets evaluated on an individual basis, and requirements vary by lender.

Is 650 a good credit score to buy a car? ›

Is 650 a good credit score to buy a car? It's possible to get approved for a car loan with a 650 credit score. If you are approved for a car loan, having a lower credit score may mean you're offered less favorable loan terms, like a higher interest rate.

Can I buy a house with a 650 credit score? ›

The major credit bureaus have different credit scoring categories, and a good credit score is between 670 and 739. A 650 is on the high end of the fair credit score category, which ranges from 580 to 669. A 650 credit score will help you qualify for most home loans, but you may end up with a higher interest rate.

How big of a loan can I get with a 650 credit score? ›

You can borrow as much as $40,000 - $100,000+ with a 650 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

How to go from 650 to 750 credit score? ›

Top ways to raise your credit score
  1. Make credit card payments on time. ...
  2. Remove incorrect or negative information from your credit reports. ...
  3. Hold old credit accounts. ...
  4. Become an authorized user. ...
  5. Use a secured credit card. ...
  6. Report rent and utility payments. ...
  7. Minimize credit inquiries.
Jul 27, 2023

Can I get a $30000 loan with a 650 credit score? ›

You will need a credit score of 580 or higher to get a $30,000 personal loan in most cases, along with enough income to afford the monthly bill payments.

Can I get a $20,000 loan with a 650 credit score? ›

The required credit score for a $20,000 personal loan will vary from lender to lender, but a score of at least 650 will typically land you a decent interest rate and reasonably good repayment terms. Check with different lenders to find out their credit score requirements.

Can I get a $5000 loan with a 650 credit score? ›

With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).

What if you are told that your credit score is 650? ›

A 650 credit score is generally a fair score. While a lot of people have fair scores, you may still find it difficult to get approved for credit without high fees and interest rates with a score in this range.

What credit score is needed for a $30,000 car loan? ›

The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.

What APR should I expect with a 650 credit score? ›

Auto loan interest rates by credit score
Credit scoreAverage APR, new carAverage APR, used car
Prime: 661-780.7.01%.9.73%.
Nonprime: 601-660.9.60%.14.12%.
Subprime: 501-600.12.28%.18.89%.
Deep subprime: 300-500.14.78%.21.55%.
2 more rows
Feb 29, 2024

What is a good credit score for my age? ›

What is a good credit score for your age? You might consider your score to be good if it meets or exceeds the average for your peers, but that isn't the best gauge. Following NerdWallet's general guidelines, a good credit score is within the 690 to 719 range on the standard 300-850 scale, regardless of age.

What kind of mortgage can I get with a 650 credit score? ›

Since you are already overqualified for an FHA loan with a credit score of 650, we would recommend you get a traditional loan, or what's known as a conventional loan. This one is privately guaranteed, unlike USDA or FHA loans.

What credit score is needed to buy a $300K house? ›

The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.

How to get from 650 to 700 credit score? ›

6 easy tips to help raise your credit score
  1. Make your payments on time. ...
  2. Set up autopay or calendar reminders. ...
  3. Don't open too many accounts at once. ...
  4. Get credit for paying monthly utility and cell phone bills on time. ...
  5. Request a credit report and dispute any credit report errors. ...
  6. Pay attention to your credit utilization rate.

How rare is an 800 credit score? ›

According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.

How to get 800 credit score from 650? ›

How to Get an 800 Credit Score
  1. Pay Your Bills on Time, Every Time. Perhaps the best way to show lenders you're a responsible borrower is to pay your bills on time. ...
  2. Keep Your Credit Card Balances Low. ...
  3. Be Mindful of Your Credit History. ...
  4. Improve Your Credit Mix. ...
  5. Review Your Credit Reports.
Mar 12, 2022

How rare is a 750 credit score? ›

Your credit score helps lenders decide if you qualify for products like credit cards and loans, and your interest rate. You are one of the 48% of Americans who had a score of 750 or above as of April 2023, according to credit scoring company FICO.

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