As y’all know, I purchased my first home in 2017, and going through the process to work with my credit score and improve it was eye opening. If you’re buying a home soon, now is the time to get acquainted with your credit score and find tools to make the most of it! Today’s guest feature will help you!
A credit score is a three-digit number that is arrived at after your credit report has been calculated. This is what lenders use to evaluate whether you deserve to get a loan or mortgage. In addition to that, it’ll also determine the interest you’ll be charged on a loan. The better your credit score, the higher your chances of getting approved.
A good credit score in the United States ranges between 690 and 720. Above that you’re in the excellent category. Credit scores above 700 are usually considered unique and exemplary. They can attract very good offers on loans and mortgages. In other places, a credit score of even 580 may be considered good. So it all depends on your location.
What it means to have a 650 Credit Score
A lot of people ask this question: is 650 a good credit score? Well, a 650 Credit score is advantageous because in most instances, you’re close to the average credit score that most banks or lenders want. This means that you have the chance of getting loans and mortgages based on your credit.
However, some banks and lenders may be a little hesitant on giving you loans as they’re not entirely sure if you’ll be able to pay back in time without you incurring late fees. Moreover, they may end up charging you more interest rates than they would have if you had a higher credit score.
Things you can do with a 650 Credit Score
So, what can you do with a 650 credit score? Well, there a few options you have available to you. For instance, if you’re looking to buy a house, then you may just be able to do that depending on the kind of house loan you intend to take.
When applying for an Federal Housing Administration (FHA) loan, you’ll need at least a 580 score to be approved. However, 640 is the lowest for conventional loans. This puts anyone with a 650 credit score at a good position to receive the financing they need.
To add onto that, you should be able to get some credit card deals with your 650 credit score. You can obtain a secured credit card that require you to deposit some money first before using the card. One such card is Capital One which gives you a master card. The good thing about this is that it can help you build your credit score further and make you more capable of getting better credit cards.
Having a credit score of 650 is beneficial because one may be able to get loans, mortgages and have access to a variety of credit cards. Nevertheless, one should aim at higher credit scores as they guarantee better deals in relation to loans, mortgages and credit cards and reduce the interest rates they will be given.