WHAT DOES A CREDIT SCORE 650 MEAN?
In order to understand whether a 650 credit score
is good or bad, you first need to
understand how credit scores are calculated.
All scores are set on a scale between 300-850.
As you can see from the chart below, a score of
650 falls into the low end of the fair range.
This means that while you will likely be
approved for most types of credit, you’ll
end up paying higher interest rates.
COMPARE YOUR 650 SCORE TO OTHER CREDIT SCORES
HOW TO IMPROVE A 650 CREDIT SCORE
1. ALWAYS PAY YOUR BILLS ON TIME:
Payment history counts the most — 35%
when it comes to calculating your credit score.
Plus, how well you keep up with your payments is reflected in your credit report, which lenders
use to gauge your creditworthiness
Missed payments are the trademark of a
risky borrower, indicating irresponsibility and
potential financial distress.
2. REDUCE CREDIT CARD DEBT
Carrying a large amount of credit card
debt is a huge financial liability that can
backfire and cause you to miss a payment,
and lenders know it.
Reducing credit card debt can decrease your credit utilization which is a key ingredient in your credit score.
3. MONITOR YOUR CREDIT
Keeping tabs on your credit by regularly
viewing your credit reports and scores is
a key to getting and keeping a great score.
By monitoring, you can detect errors or
fraudulent activity as early as possible
so you can take action to protect your credit.
HOW TO IMPROVE YOUR CREDIT SCORE
FROM 650 TO 800
1. LIMIT YOUR CREDIT UTILIZATION
To determine your credit utilization, divide how
much you owe by your total credit limit.
Calculate credit utilization on each of your
credit card accounts, as well as an overall
calculation across all accounts.
People with credit scores of 800 and
above use less than 5% of their available credit,
while people with scores from 701 to 750 have
25% credit utilization.
2. FEW HARD INQUIRIES
Hard inquiries occur when you apply for a
loan or credit card and the lender initiates
a hard pull on your credit.
Unfortunately, each hard inquiry can
lower your credit score by a few points,
which could last around six months to a year.
3. CREDIT AGE
People with longer credit histories tend to
have higher scores than those with more
limited credit histories.
HOW LONG WILL IT TAKE TO IMPROVE A 650 CREDIT SCORE?
With regular payments and following the above-mentioned steps, you can gradually improve your credit score in a reasonably short amount of time.
IN SHORT PAY ALL YOUR BILLS ON TIME EVERY MONTH AND MANAGE YOUR FINANCES
RESPONSIBLY IF YOU WANT TO IMPROVE YOUR 650 CREDIT SCORE.
Here’s a List of Common Credit Occurrences and Length of Time They Remain on a Credit Report:
Actual inquiries made by credit grantors minimum of --3 years
Credit history and banking information --6 years from the last activity date
Bankruptcies -6 years from the date of discharge (1st bankruptcy)
Judgments, foreclosures, garnishments-- 6 years from the date filed
Collections-- 6 years from the date of last activity
Secured loans --6 years from the date filed
Credit Counseling, Consumer Proposals to creditors,
Orderly Payment of Debt (OPD), Voluntary Deposit informatioN--- 3 years from the date settled or completed