In general, if you have a credit score of 620 or higher, you should be able to qualify for most conventional loans. A 650 credit rating is considered fair, and it helps lenders decide if you are eligible for products such as credit cards and loans, and what interest rate you should pay. You may also be able to get an FHA loan with a 650 credit score. This type of loan has a debt-to-income limit of 50% and a lower minimum credit score.
For bigger loans, such as buying a home, anything below a 680 credit score is going to be difficult. That's why it's important to take a look at your credit report from the three national lending agencies (Experian, TransUnion, and Equifax) before applying for a mortgage. With a 650 credit score, you may not qualify for the best possible mortgage terms, but you should still be able to qualify for many popular types of mortgage loans. Increasing your credit rating can help you qualify for lower interest rates, saving you thousands of dollars over the life of the loan.
You can earn those 20 points by reducing negative elements in your credit report, such as late payments. Applying for new credit cards can result in difficult inquiries about your credit reports, so it's important to be careful. Upstart is another good option for loans and you should be able to get approved with a 650 FICO credit score. If you have been a customer for a while and have repaid other loans, you may be able to get a loan with a lower credit rating, but they will rarely go down to 650 FICO.
As you show responsible credit behavior and make timely payments, you may qualify for improved credit cards or loans with better conditions.