You’re likely here because you’ve learned that you have a 650 credit score and you’re wondering if it’s good or not.
I want to share with you what a 650 credit score means in terms of getting you loans, as well as what you can expect from lenders when you apply for mortgages, auto loans, or a credit card with a 650 credit score.
Cutting to the chase, here’s what a 650 credit score means:
Is 650 a good credit score?
Well let’s look at a credit score range first. Credit scores are usually scaled from 300-850, where as 850 is the highest credit score you can obtain.
- 300-549 : Poor credit score
- 550-649 : Problem credit score
- 650-749 : Good credit score
- 750-850 : Excellent credit score
As you can see, a credit score of 650 falls within the “good credit score” range. You will also notice that you are just at the beginning of this range. This means that while you are in the good credit zone, there is plenty of room for improvement.
Along with this, you could fall into the poor credit range fairly quickly should you suddenly default on loans or have difficulty paying bills and loans on time.
How does a credit score of 650 compare with the nations average?
Experian, a popular credit history and credit reporting company, compiled a sample of average credit scores from 3 million credit profiles. These credit score profiles ranged from 330-830.
They found the average credit score in the U.S. is 687. They also found that southern states generally had lower scores. It’s not clear how many samples they used, so this information may not be representative of the entire U.S. population.
Nonetheless, it gives you an idea of what the average American’s credit score is, and gives you a comparison of what a 650 credit score is like compared to the rest of America.
Types of loans you can get with a 650 credit score
Can I get a mortgage with a 650 credit score?
You can get a home loan with a credit score of 650, however, this is likely the basement level of credit score lenders will accept. Securing a mortgage likely won’t come at a breeze, and you may have to jump through an extra few hoops or visit a few different lenders to make it happen.
I recommend working to increase your 650 credit score if you can before applying for a home loan. With an increased credit rating will help you get a loan easier as lenders will see you as less risky. But perhaps the biggest benefit of applying for a mortgage (or any loan) with a better credit score is the money it will save you.
Generally speaking, someone with a higher credit rating will get favorable (lower) interest rates. Over 30 years or so, a 1% change in interest rate will mean tens of thousands of dollars saved in interest payments. So it really does pay to increase your credit score as high as you can before you apply for a mortgage.
There is a program called the Federal Housing Administration (FHA). They themselves don’t give loans, whereas they guarantee the loan payment to the lender should you default on it.
FHA mortgages has many benefits. One of the biggest benefits it has is the ability to get you a loan with less than stellar credit score. For example, your 650 credit score won’t get any lenders to jump out in excitement, but with the help of a FHA loan, it may be what you need to secure the funds necessary for your home loan.
Keep in mind that the amount of your downpayment and income level will dramatically affect your ability to get a home loan.
650 credit score auto loan
You can definitely get a auto loan with a 650 credit score. Though lenders would love you to have a higher score, you should be able to secure a nice sum of money for an auto loan. Generally, as long as your credit score doesn’t have anything on it that is too damaging, you can expect to get a loan.
Since you are at a higher risk of defaulting with a 650 score (compared to someone with a let’s say 750 credit score), you’ll likely need to pay a higher interest rate to compensate for this risk.
A few things will really affect how much money you can get for an auto loan. Your income level in incredibly important. The amount of debt you currently have is also important. And the amount of auto loans you’d like is also very important.
Generally speaking, when you apply for a loan at the financing department of a auto dealership or at a financial institution like a bank, they will input your personal information into a a computer software that will generate numbers. The computer and its algorithm will decide how much of a loan you can get and at what interest rate. They will determine this by taking into account your credit history, amount of money you make, and how much debt you currently have (which they can see when they pull your credit report).
650 credit score credit card
Credit cards are pretty easy to get, even after the credit collapse of 2008. Though lenders have made it more difficult to get a credit card, they are still pushing them hard onto everyone.
If you are looking for an unsecured credit card with a 650 credit score, simply visit a credit card comparison website and look for credit cards in the 650 range. Apply for the one you like and see what result you get.
You won’t be guaranteed approval if you apply for a credit card that’s in your credit rating range. You may choose to apply for a different credit card if you don’t get accepted on the first try. Keep in mind that the more credit applications you perform, the more “hits” it takes on your credit history, and this can lower your credit score.