Financial Education
Understanding Your 650 Credit Score
A credit score of 650 is generally considered fair but below average. Improve it by focusing on payment history, managing credit utilization, and lowering debt. Setting up a weekly or monthly budget can help you stay organized and manage your finances effectively.
According to FICO, the average credit score in 2023 was 718.
Consumers with a 650 score may still have decent lending options available to them, as it’s not seen as “bad” by FICO or VantageScore. However, you may have to spend time comparing lenders to find the best interest rate and terms with this specific credit score.
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Key Takeaways for a 650 Credit Score
Overview of Your Rating
A 650 credit score is a fair credit score. You might not qualify for all loans, but you may still qualify for secured loans, such as a mortgage, car loan, certain personal loans, and more!
Borrowing Options
If you need emergency cash, consider applying for bad credit loans. These loans are meant for people who don’t have a good credit score and have trouble qualifying for traditional loans.
Improving Your Score
Pay all of your monthly bills on time and work on paying down any existing debt. You can also sign up for a secured credit card or credit builder loan to start building a better credit score.
Is a 650 Credit Score Good?
A 650 score is decent and can help borrowers get quick financing for unexpected emergencies. This score is on the lower end, but there are still lending options available to you. Check out all of the helpful products and tools you may still qualify for below:
Pro Tip: Many lenders look beyond just the score. Consistent income and recent payment history can still unlock opportunities.
US Population Credit Score Distribution
25
20
15
10
5
0
300-579
580-669
670-739
740-799
800-850
Check out some of our partners...
Explore financial products tailored for your current credit standing. These partners specialize in helping people rebuild.
Credit Builder Account
Build credit while saving money simultaneously.
No hard credit pull required to apply.
Reports to all three major credit bureaus.
Learn More ›
Lease-to-Own Solution
Flexible lease purchase plans for essential items.
Simple process with instant decisions.
No credit required option available.
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Personal Loans
A personal loan is an installment loan that borrowers can use for all types of expenses. Lenders provide a lump sum that is paid off in monthly installments over a few months or years. The average loan amount for all personal loans is between $2,000 and $25,000. Personal loans are typically unsecured, so eligibility is based on the borrower’s creditworthiness.
If you have a fair credit score, you may be eligible for an online personal loan if you have recurring income. If you are self-employed, you could still qualify if the lender accepts alternative sources of income, such as invoices or tax returns.
If you have a fair credit score, you may be eligible for an online personal loan if you have recurring income. If you are self-employed, you could still qualify if the lender accepts alternative sources of income, such as invoices or tax returns.
Bank Loans
Borrowers with decent credit scores may be able to qualify for bank loans. Bank loans may offer fewer loan fees and lower APRs. However, the minimum credit score requirements can be quite high, and the approval process may take longer than for an online loan.
Credit Cards
There are all kinds of credit cards available, including some that cater to poor credit scores. Things like income will play a huge role. Look for secured cards where you put down a deposit as collateral.
Action Plan
Action Plan
Action Plan
How to Improve Your 650 Score
Here are a few ways to maintain your fair score:
Avoid Risky Quick Fixes
A credit repair company usually requires a large upfront fee for mediocre results. Remember that obtaining a good credit score takes time. If you need help organizing your finances or establishing a debt repayment plan, look for a reputable non-profit credit counseling organization.
Become an Authorized User
An authorized user is someone that is added to an existing credit card account but is not responsible for repayment. Authorized users can benefit from the primary borrower’s timely payments without actually using credit limits. But remember that if the primary borrower misses a payment, it will also reflect badly on your credit history.
Make Timely Payments
Your payment history counts for 35% of your FICO Score. By making all of your monthly payments on time, you can steadily increase your credit score and improve your payment history on your credit reports over time. However, making late payments can result in a lower score and late fees. To avoid late or missed payments, consider signing up for autopay or payment alert text messages.
Improve Credit Utilization Management
Credit utilization is the amount of available credit you have compared to your debt, and it makes up 30% of credit scores. If you have a lot of outstanding debt, you may have a lower credit score and experience difficulty qualifying for loans.
But you can quickly pay off existing debt and increase your available credit by:
• Establishing a monthly financial plan
• Consolidating debt
• Paying more than the minimum
• Reducing monthly expenses.
Focusing on debt repayment can help you obtain a good credit score and credit history.
But you can quickly pay off existing debt and increase your available credit by:
• Establishing a monthly financial plan
• Consolidating debt
• Paying more than the minimum
• Reducing monthly expenses.
Focusing on debt repayment can help you obtain a good credit score and credit history.
Check for Credit Report Errors
It’s not unusual to find errors on your credit report. According to the American Bankruptcy Institute, about 13% of the entire national population has mistakes on their credit reports. Wrong balances, incorrect payment dates, and other errors can damage your credit score.
Remember to request your free annual credit reports from the three major credit bureaus and review your information for inaccuracies. If you find an error, you can file a dispute with the credit reporting company or companies.
Remember to request your free annual credit reports from the three major credit bureaus and review your information for inaccuracies. If you find an error, you can file a dispute with the credit reporting company or companies.
Can I Buy a House With a 650 Credit Score?
Borrowers with 650 credit scores may be able to get a mortgage to buy a home! Learn about some mortgage loan options for lower credit scores below.
To better understand what loans and credit products you can get with a 650 FICO Score, check out this helpful guide:
To better understand what loans and credit products you can get with a 650 FICO Score, check out this helpful guide:
Mortgage Type
Description
Credit Score Requirements
Key Features
FHA Loan
Insured by Federal Housing Administration.
As low as 500 with 10% down.
Lower down payment requirements.
VA Loans
Backed by Dept. of Veterans Affairs.
Typically 620 (varies by lender).
No down payment required; no PMI.
USDA Loans
For homebuyers in rural/suburban areas.
640 for automatic underwriting.
No down payment required.
Disclosure: This table provides estimates; requirements and features can vary by lender and situation.
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