Today let's discuss credit that's in the 650 range. Currently, there are more than 80 million individuals in the U.S. that have scores at or below 650. So, in this lesson we're going to talk about what we have to do to work with it. We'll talk about borrowing money, the end results of doing that, and what we can do to improve on this score.
The first thing we should discuss is how bad this score actually is. The answer is that it isn't terrible. In fact, it's considered to be a good score in some situations. It's below the average score but can still be used to get loans in many situations.
People often ask me if it's possible to take out a mortgage loan if you find yourself with this score. That's definitely possible. In fact, the FHA loan program makes it possible to get a loan with a credit score all the way down at 580. You have to meet certain criteria but it isn't that difficult to. Your loan will be more expensive if you take it out with bad credit but it's at least possible.
Purchasing a vehicle with credit in this range is also possible. Since these loans are backed by the car, it would allow the lender to take more risk on the loan. That said, buying a car with credit in this range is slightly more complicated than that. The lender will probably look at your credit report to see if you've had a repossession or bankruptcy recently. I've seen instances where a person with 650 credit was denied an auto loan because of a repossession.
Without question you can turn it around within a few months! Make sure you pay your bills on time, pay down your credit cards, and try to increase the limits.
The first thing we should discuss is how bad this score actually is. The answer is that it isn't terrible. In fact, it's considered to be a good score in some situations. It's below the average score but can still be used to get loans in many situations.
People often ask me if it's possible to take out a mortgage loan if you find yourself with this score. That's definitely possible. In fact, the FHA loan program makes it possible to get a loan with a credit score all the way down at 580. You have to meet certain criteria but it isn't that difficult to. Your loan will be more expensive if you take it out with bad credit but it's at least possible.
Purchasing a vehicle with credit in this range is also possible. Since these loans are backed by the car, it would allow the lender to take more risk on the loan. That said, buying a car with credit in this range is slightly more complicated than that. The lender will probably look at your credit report to see if you've had a repossession or bankruptcy recently. I've seen instances where a person with 650 credit was denied an auto loan because of a repossession.
Without question you can turn it around within a few months! Make sure you pay your bills on time, pay down your credit cards, and try to increase the limits.
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