Ultimate Guide to Credit Scores – Is 650 a Good Credit Score?

July 22, 2011 by  Filed under: Credit 

Before we jump into whether a 650 credit score is good or bad, we need to know the credit scoring model being utilized.

There are a number of different models, but the Fico score is far and away the most important and widely used credit score, so let’s start with that.

While credit scoring is shrouded in secrecy, we do know the lowest Fico score possible is 300, while an 850 Fico score would mean you’ve got perfect credit.

With the proper range in place, we can begin to dissect the 650 credit score to determine whether it’s good or bad.

Let’s Start With the Average

While a variety of numbers have been thrown out there, the general consensus seems to be that a score between 660-700 is an average Fico score.

That said, a 650 score would be just below average, or on the low side of average. We also know that most lenders consider Fico scores below 620 to be “subprime,” so a 650 score is a little better than that.

So with regard to Fico, a 650 score would probably be best characterized as a slightly below average credit score, or a “fair” score.

If you have a 650 score, or something similar, it probably means you’ve made a few financial missteps, but likely nothing serious.

Perhaps a missed payment here or there, and maybe a few credit card balances that are higher than they should be. It’s certainly no cause for panic, but there’s certainly room for improvement.

What About VantageScore?

Another credit scoring model on the rise is VantageScore, which was created by the credit bureaus to take on the almighty Fico score. And while they haven’t made much of a dent yet, there’s a decent chance this score will matter in a few years.

The VantageScore ranges from 501-990, and also has an associated letter grade scale. This makes it handy to determine what a particular score actually means. Scores between 600-699 fall into their “D” bucket, which as we all know from years of schooling, is frowned upon.

So if you’ve got a 650 VantageScore, you better take a hard look at your credit to determine what’s holding you back. You could have something more serious on your credit report, such as a collection or charge-off, both of which are severely delinquent accounts.

But regardless of the model being used, it’s clear that a 650 credit score can be and should be improved to ensure you receive favorable terms and are approved for all the loans and credit cards you apply for.

This article was written by Colin Robertson, the author of TheTruthAboutCreditCards.com, which includes his popular credit score range.

He also recently launched a balance transfer offers blog aimed at helping consumers save money on high-APR credit card debt.

Article Source:

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.

Prev Post:
Next Post: