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What Does A 650 Credit Score Mean? How To Improve It & Get The Best Loans And Credit Cards
By Mark B. Huntley, Esq.
Last Updated 8/24/19
It is really common for people with a 650 credit score to feel anxious and nervous when discussing their credit.
It really is one of those scores that is in between bad credit and good credit.
But it is a solid enough score for you to feel good about your credit score future.
By taking just a couple of steps, you can quickly push up into the good credit category and start realizing all the financial benefits that are available to people with credit scores over 700.
When you finish this article, you will understand what a 650 credit score means and have three great ideas on how to improve it!
What Does A 650 Credit Score Mean?
Credit scores in the 600’s are considered fair scores with about 10% of the U.S. adult population having a credit score of 600, 625, or 650, but putting you in the bottom 30% amongst your peers.
However, people with scores in the lower 600’s are going to face significant borrowing challenges, receive many credit denials and only be offered the highest APR percentage rates when approved for a loan.
As your score moves into the 650 to 675 range, you may be less likely to be denied for some forms of credit, but you will still receive high APR loan offers.
OK. Now what?
You will need to take steps to improve your credit score through responsible credit building and it may take a little fast cash to get things started..
We will review multiple proven methods to improve your credit score quickly in three key credit score categories.
Add A New Type Of Loan To Your Credit Mix
When you apply for credit, a good well rounded credit account will have multiple types of credit mixes.
Your credit score is affected by how many different types of credit accounts you have had over your lifetime.
The most important three types of credit mixes are revolving accounts, installment accounts, and real estate mortgages.
Credit cards are a type of a revolving account and are the most common loan in the United States.
Auto loans are what most people think of when talking about an installment account and are also usually a bit more challenging to qualify for because, on average, the loans are a larger sum of money than a revolving loan.
Having a real estate mortgage in your credit mix can really improve your credit score because they represent the most challenging loan to acquire and thus if you have one, you must be a safe bet to lend money to in the eyes of other lenders.
How To Add An Installment Account To Your Credit Mix With No Credit Check
As discussed above, having an installment account on your credit history can improve your credit score.
However, if you have a credit score of 600, 625, 650, or 675, you may not qualify for an installment loan, and if you do, the APR interest is going to be so HIGH you will make Cheech and Chong jealous!
But, do you want the answer to...
‘How to improve a 600, 625, 650, or 675 credit score?’
Credit Builder Loans online are small, usually between $500 - $3,000 and are paid off over one or two years.
However, unlike a traditional installment loan, you do not receive the proceeds until you make all the payments.
During the credit builder loan period, Self Lender will report the installment accounts monthly payments and loan terms to the three major credit bureaus which have improved peoples credit 25 – 50 points in 90 days.
The best part is they have loans with monthly payments as low as $25 a month and cost less than $10 to sign up.
Increase Your Available Credit
The two easiest ways to increase your available credit limit is to ask for a credit increase with an existing credit account or apply for new credit.
Many people do not realize that once they establish credit with a company that they can request a credit increase for free.
You would be surprised how easy it is; some credit card companies allow you to request increases online through their websites.
Because you already have credit with them, these requests often don’t result in a reported credit inquiry, so they do not affect your credit score.
To recap three ways to improve your 650 credit score:
- Add a new type of loan to your credit mix
- Increase your available credit
- Build a solid payment history
Increase Available Credit With An Online Fingerhut Catalog Credit Cart
Part of the building credit process requires you to add credit and prove to the financial world that you can responsibly use that credit.
If you have a credit score in the 625, 650, or 675 range, your credit opportunities are limited because your score indicates that you are a higher risk to default on a loan.
This can be due to past credit problems or because you are new to credit and have a limited credit history.
Either way, I experienced first hand how much Fingerhut helped raise my credit score.
Within a few weeks of signing up with Fingerhut my credit score went up 29 points and overall it almost added 100 points to my credit score.
You can to by applying for a Fingerhut online store catalog credit card because they specialize in giving credit to people with bad credit or no credit.
Even if you have bad credit, Fingerhut has a Fresh Start loan program with WebBank designed just for you that converts your account into a revolving loan once you make a couple of payments.
When I applied for a Fingerhut Online credit card, I was approved for a $1,000.00 credit limit with a credit score around 600 to 625.
Adding a Fingerhut account will increase your revolving credit limit and help to improve your credit score.
Build A Solid Payment History
Your payment history is the most important component of your credit score regardless if it is 600, 625, 650, or 675.
Lenders like to see that you have multiple credit accounts with a long and solid history of on-time payments.
The longer you have a history of on-time payments the higher your credit score will improve.
This is why having multiple credit accounts is so important because having only one or two doesn’t give lenders enough information to feel comfortable that they will be paid back if they loan you larger sums of money.
By adding inexpensive and specifically chosen impactful credit accounts such as Credit Builder Loans by Self Lender, Fingerhut Catalog Credit Cards, and Open Sky Visa Credit Cards will start helping build your payment history.
Just remember that the most important rule is to make all of your payments on-time.
What Credit Card Can I Get With A 650 Credit Score
The worst thing that can happen when you apply for a credit card is that you get declined.
When you apply for a credit account, the lender requests your credit history from one or more of the three major credit bureaus; Equifax, TransUnion, and Experian.
This request is called an inquiry and is recorded on your credit account with the credit bureau.
Too many inquiries can hurt your credit score.
Usually, when you apply and are approved for a new credit account, there will be a corresponding credit score increase for that new credit which offsets the credit score decrease for the inquiry.
So, if you apply for a credit card and are denied, then you get hit with a double whammy, a credit inquiry without the new credit line.
Credit denials are avoidable by being smart and making strategic financial decisions.
Open Sky offers a Visa-backed secured credit card that has NO CREDIT CHECK.
This means that you will be approved when you apply even if you have a credit score of 600, 625, 650, or 675!
Open Sky Secured Credit Cards work precisely the same as traditional credit cards regarding credit bureau reporting and will help your credit mix, available credit limit and payment history with responsible credit building.
People with credit scores in the 600 to 625 range have it a bit more complicated than people with slightly higher credit scores in the 650’s to 675.
Many of the ideas discussed can raise your credit score 25-50 point in less than 90 days.
Some ideas, such as requesting your existing credit accounts to be increased can be done online and in literally minutes at no cost to you.
Others, like adding to your credit mix with a credit builder loan are inexpensive, and I was able to get approved with no credit check online in less than 5 minutes.
I don’t think people understand how important it is to make all of your payments on-time regardless of your financial situation.
Your payment history is the single most important component of your credit score and every month you have the opportunity to build upon it by making all of your payments on-time.
If interested you can read more about my story... Mark's Journey To A 700 Credit Score.
Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.