650 Credit Score Guide

650 Credit Score Guide

What does a 650 Credit Score mean?

What does it mean if you have a 650 credit score? The FICO credit scores range from 300 to 900, and most people think that a 650 credit rating is an excellent score. Is this true? What can you do with a 650 credit score? Can you buy a house?

What You Can Finance with a 650 Credit Score

You can finance a car or truck with this credit score. However, do not walk into a dealer without getting an auto loan from your bank or a separate lender. In this manner, you will be able to shop around for a decent interest rate and payment plan. Dealers are experts at raising your level of energy and getting you in the right mood to buy now and pay more.

You can also finance a house with a 650 credit score. You must shop around, though, for this to be worth the cost. Be sure to use a lender and not a broker, for broker’s fees are attached to the amount of your mortgage, and this can be anywhere from three to five thousand dollars. Do not let the large cost of your house make this number seem small.

Are There Any Real Benefits to Improving My Credit Score?

Yes, there are. Many times, individuals fail to see just how much an interest rate is really costing them. Look at the interest rate on your home of choice and calculate precisely how much that would be with your current credit score. Now consider that amount without the ten or twenty-year loan, consider it without the cost of the house, and think about paying it right now. Would you be able to pay it in cash right away?

The interest you pay on your loan can really add up, and improving your credit score can enable you to get a much lower interest rate, pay off your loan sooner, and consider your purchase your own.

What Factors Affect My Credit Score?

First of all, your payment history accounts for a good one-third of your credit score. Make your payments on time and even early, and this should not be a problem. Your current debt figures another one-third of your credit score. Not only are high debts considered to be the result of irresponsible money management, but they also affect your ability to pay on any new loans.

To a lesser extent, your length of credit history, types of credit used and new credit are other factors which affect your overall credit score, and obviously, your provable income is a worthy consideration.

It does not matter if you have a 650 credit score or a much lower score. With solid, substantial payments and good financial responsibility, you should be able to get the financing you need.

Excellent Credit Score Range

Excellent credit score range can help in more ways than you know

FICO credit scores range in between the score of 300 being the very worst and 850, which is in the excellent credit score range. In some cases, the categories will be flexible. If you were stuck between 619 and 620, it is not always the variance between a fair credit score and a bad credit score.

We’ll just start with the scores within the excellent credit score range. Obtaining a credit score of 750 or higher is considered great!

People in this credit score range have little to no negative balances on their credit reports. Individuals with credit scores considered to be in the excellent credit score will have no problem attaining a loan very easily with rates near the lowest interest rates accessible. If you happen to be one of these people, then congratulations, work hard to uphold these credit scores. Always remember that without a reputable credit history, it may be challenging to get to the excellent credit score range.

Credit scores ranging below 750 but above 720, are not considered to be in the excellent range but is still reasonably good. In most cases, you should receive great interest rates from lenders without putting forth much effort.

If you are an individual with credit scores that fit into the credit score range of 620 to 720, then your credit is considered fair. It may be a little more difficult to obtain loans. It may also become tougher to find reasonable interest rates with most lenders. You should work on taking the necessary steps to increase your credit scores to boost your credit score up to the excellent credit score range.

It may be very helpful for you to explore the various online resources that will help you understand the fundamentals required to obtain credit scores within the excellent credit score range.

Situations That May Lead To Needing A Loan

The economy today leads to people needing loans sometimes when they least expect it.  People may ask the question of why would I need a loan.  There are too many reasons why people need a loan to list in one article, but there are many reasons why people need loans that are more common than others.  This article will touch on a few of the more common reasons that the need for a loan may come up in everyday life.

Purchasing An Automobile

How often do you hear that someone has paid cash for a new automobile?  This is not a common practice in today’s world.  More often than not if a person wants to purchase a new car, they are going to need a loan.  This is where a new car loan will come into play.  Many different options are being offered for a new car loan.  Be sure to do your shopping around for the best deal.  You should look for the best interest rate, whether or not there is a down payment needed for the new car and what kind of a repayment plan is offered.

Mortgage Loans

 Like an automobile loan, a mortgage loan is very common.  People cannot afford to purchase a house with cash.  There are many different types of loans when it comes to a mortgage.  The borrower should seek the help of a mortgage broker when looking for the best mortgage loan to fit their financial situation.  Mortgage brokers know the loan lingo and understand the different types of mortgage programs.  They will be able to help the borrower to get the perfect loan for their home.

Personal Loans

Another reason why a borrower may seek out loans for bad credit is for a vacation, holiday expenses, or even a wedding, to name a few.  For reasons like these, the best option available for a borrower is a personal loan.  These loans are offered as either secured loans where the collateral is offered to help protect the lender from a default on the loan or as an unsecured loan where no collateral is offered at all.  These loans are usually offered in smaller amounts and often come with a higher interest rate with a shorter repayment period.

Student Loans

With the cost of education rising everyday student loans are becoming more and more popular.  These loans are very different because of the various programs that are currently being offered by the government.  A student or a student parents can qualify for different types of student loans called a Stafford loan or a Perkin’s loan.

Conclusion

As stated at the beginning of this article, there are hundreds if not thousands of reasons why a person may need to obtain a loan.  It is recommended that the borrower research the different types of unsecured loans that are available to them to decide what is best for their financial situation.  When in doubt about what loan is best you can ask to speak to a loan representative, and they will be more than willing to help you.

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