A 650 credit rating is generally considered fair, but it's not a good credit score. To have good credit, you need a score of at least 700. A 650 credit rating is still low enough to make it difficult to open new lines of credit and damage your quality of life. But with a little work, you can reach (and even exceed) that score range, which could mean having access to a wider variety of credits and loans, with better interest rates. Unfortunately, when you apply for a new credit card or loan with a 650 credit rating, the issuing bank will verify your credit, which is considered a difficult query.
Difficult Consultations Will Temporarily Decrease Your Credit Rating. You will recover as time goes on and more positive behavior is reported. In response to the COVID-19 pandemic, the three credit reporting agencies have temporarily increased the number of free credit reports you can get from one per year to one per week from each agency. We recommend getting all three credit reports right now, but you can get next year's reports separately to monitor your progress as your credit increases. When choosing between these two options, a secured credit card is always your best option if your primary goal is to increase your credit. The first step to improving your credit is to make sure that all the information in your current credit report is correct.
Having a low credit score also means that you'll likely end up paying more for services such as insurance. It's a smart savings tool, but the credit union also reports its payments to national credit bureaus, so regular and on-time payments can lead to improvements in credit scores. For big loans, such as buying a home, anything below a 680 credit score is going to be difficult. However, it may not have enough of an impact to change your credit rating; the size of the impact depends on your current credit history. Having a 650 credit rating makes it more difficult to get approved for a loan or a new line of credit. But with some effort and dedication, you can improve your score and get access to better interest rates and more options.
Here are some tips on how to improve your 650 credit score:
- Check your current credit report for accuracy.
- Make sure all payments are made on time.
- Pay off any outstanding debts.
- Limit the number of applications for new lines of credit.
- Consider getting a secured credit card.