Best Credit Cards For A 600 Credit Score
Brittney is a credit strategist and debt expert with years of experience applying her in-depth knowledge of the credit and personal finance industries to write comprehensive, user-friendly guides on the products and strategies readers can use to make smart financial decisions throughout the credit-building process.
Edited by: Lillian Guevara-Castro
Lillian brings more than 30 years of editing and journalism experience, having written and edited for major news organizations, including The Atlanta Journal-Constitution and the New York Times. A former business writer and business desk editor, Lillian ensures all BadCredit.org content equips readers with financial literacy.
When growing your hair from short to long, theres often a transitional stage in the middle when its long enough to get in your eyes, but not so long it can be tied back. A credit score of 600 to 650 is the financial equivalent of that follicular midpoint its probably not good enough for a prime rewards card, but it may be too good to settle for expensive subprime cards.
In many ways, the cards you can get with a 600 credit score will depend on the nature of your score if youre building credit for the first time, a student or no annual fee card may be the right choice. If youre rebuilding credit after some mistakes, a secured card may provide the best value.
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Top Overall Cards For 600 To 650 Credit Scores
Although consumers with credit scores in the 600 range are hardly the lowest cardholders on the credit card food chain, theyre not exactly writing their own tickets, either. To easily qualify for the rewards-rich prime credit cards so popular these days, youll likely need a credit score north of the 670 mark.
What you can get with a 600 to 650 credit score is a solid unsecured credit card or a low-fee secured card that will allow you to build credit and, maybe, earn some rewards. Use your new card responsibly for six to 12 months, and your score should increase enough to get your hands on even better cards.
A PREMIER Bankcard® Mastercard® Credit Card can be obtained by consumers with a wide range of credit types. The card can be used to make purchases both online and in stores, and can help you build credit with responsible use.
What A Fair Credit Score Means For You:
Borrowers within the “fair” credit score may push interest rates higher for their lines of credit. Borrowers in this range may incur higher charges associated with a loan or line of credit. It may be difficult to obtain a 30-year mortgage at the lower end of this range and you may expect higher interest rates. Auto loan APRs may have higher rates and credit cards may have lower limits and higher APRs.
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How Long Does It Take To Go From A 650 Credit Score To 700
Do you have a 650 credit score right now? Wondering how quickly you can go from a 650 credit score to 700.
The short answer, roughly 6 months.
Now, obviously, not everyones score will move at the same pace. Perhaps you have more issues with your credit, so it might take you longer. Or, maybe your score is fairly new and you just need to build up some consistent activity, and therefore your credit score will jump more quickly.
I once had a 350 credit score. It took me just 3 years to go from a 350 credit score to a 750 credit score, so you can certainly go from a 650 credit score to 700 in less time than that!
Is 650 A Good Credit Score To Get A Car Loan
I have a steady job now and am thinking of getting a new car. Will I qualify for a car loan with a credit score of 650?
may or may not be good enough660 or highera cosigneradditional conditions
- Your bank: If you have an account with a bank, itâs more likely theyâll offer you a good car loan.
- A credit union: These are an excellent place to try to get financing on older vehicles. They also tend to offer very competitive interest rates on new cars.
- The dealership: Some lenders will have loans available if you fulfill other standardsâfor example, a good driver standard.
shop around to find the best loansaves $887 a year
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Formulating A Plan To Improve Your 650 Credit Rating
First aid foremost, you need to understand that it takes time for you to build up your credit score. Dont expect it to be improved in the next week or the next month, even if you do everything necessary to improve it.
If you have any negative factors on your credit report right now, including a late payment, a bankruptcy, or an inquiry, you may want to pay the bills now and then wait. Remember that time is your ally, not your enemy. In the end, there is no quick fix for rebuilding a credit score. It takes time.
In formulating a plan to rebuild your credit rating, you need to understand how specific actions that you take will harm or hurt your credit score. For example, will working with your creditor to close an existing account in favor of rebuilding a new one with more favorable terms hurt or harm you?
Here are two factors for you to consider: a change to your credit report will affect your credit score , and your score is based entirely on the figures that are already in your report.
A major question that people have is how long it will take for them to improve their credit score. But heres what these people are missing: there isnt anything you can do to boost your actual score. Instead, you can do many things to rebuild your history of credit, and the healthier your credit history, the more elevated your credit score will be.
How Shelly Improved Her 650 Credit Score To 741 In Just Three Months
We interviewed Shelly on May 18, 2018 she earns $49,000 a year, is 38 years old and lives inNashville, Tenn. She currently rents a condo with her boyfriend.
Member Since: 3/15/2015
|What did you do to improve your 650 credit score?|
|When my father passed away I inherited a sizeable estate. I knew it was time to get my credit in better shape. My inheritance was enough to pay off all my debts, which I did immediately. After that, I started checking my credit score every month and working to improve the other factors that were bringing down my score.|
|What is your credit score now?|
|Paying off all my debt at one time improved my credit score enormously. Its at 741 now!|
|How long did it take to improve your 650 score?|
|It took just three months to raise my 650 credit score to 741. I know I am not your average consumer because of the inheritance, but even tax refunds can help pay down debt. Im really fortunate that I inherited the money to help push my credit score to the next level.|
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Determining A Qualifying Credit Score
Before we get into the credit score you need to qualify, you might be wondering how lenders determine your credit score. After all, your FICO® Score is reported by three different bureaus.
If you’re applying for a loan on your own, lenders get your from each of the three major credit rating agencies and use the middle or median score to qualify you.
If there are two or more borrowers on a loan, the lowest median score among all clients on the mortgage is generally considered the qualifying score. The exception to this is a conventional mortgage with multiple clients being backed by Fannie Mae. In that case, they average the median scores of the borrowers on the loan.
If you have a median score of 580 and your co-borrower has a 720 credit score, the average credit score would be 650. Because the minimum qualifying score for conventional loans is 620, this can mean the difference between qualifying for a mortgage and not.
One thing you should know is that for the purposes of your rate and mortgage insurance, the lowest median score is the one that gets reported, so your rate might be slightly higher. There are also certain situations in which Fannie Mae still uses the lowest middle score for qualification. We recommend speaking with a Home Loan Expert.
Is A Credit Score Of 600 To 650 A Good Score
These days, you can get a free credit score from nearly every major credit card issuer and from dozens of third-party websites and mobile apps. But, all the numbers in the world wont do you a lick of good if you dont actually know what they mean.
To know where your score stands in the overall scheme of things, you need to know more about which scoring model was used to generate it. While creditors can use any number of the dozens of scoring models out there or even their own internal models most credit scores come from either FICO or VantageScore.
The most popular FICO credit score youll encounter is currently the FICO® Score 8, and the most common iteration of the VantageScore is the VantageScore 3.0. The nice part of these two types of scores is that they both have the same scoring range namely, each model operates on a range of 300 to 850, with 850 being the best possible score.
At a quick look, having a credit score of 600 to 650 out of a possible 850 may seem like youre doing OK after all, 600 / 850 = 71%, and that would have gotten you a passing grade of C in school, right?
Sort of. The general cutoff for good or prime credit is the 670 mark. A credit score in the 600 range will often be considered nonprime as in, its not a prime score, but its not a subprime score, either. In other words, your credit score is still considered to be risky, just not as high risk as someone with a score below 580.
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History Determines Your Credit Score Of 650
Scoring systems like FICO rely on information collected in your credit history to determine your credit score. Recent activities in your credit history typically have more weight than older events and some details matter more than others. Understanding which events carry most weigh can help you know what you need to do in order to boost your credit score.
Missed or late payments have a huge impact on your score. 35 percent of your credit score is determined by the occurrence of missed or late payments. Generally, lenders are interested in borrowers who have a habit of paying their bills in a timely manner, and studies show that customers with missed or late payments have a greater chance of defaulting than people who have a habit of paying their bills in good time. If there are missed or late payments in your credit record, its important to start paying your bills early in order to raise your credit score.
Usage rate on all revolving debt accounts for almost 30 percent of your score. Usage or utilization rate is basically how much you currently owe divided by your overall credit limit. Customers can determine their utilization rate for each account by dividing the remaining balance by their accounts spending limit, and then multiplying the resultant figure by a hundred to obtain a percentage.
Customers can also determine their overall usage rate by adding up the balances dividing on all credit cards and dividing by sum of their spending limits.
Use Your Understanding Of Credit To Build Your Credit Score
The first step in your credit journey is understanding what a credit score is and how it is calculated. Once you know the basics about credit score, you can begin to improve your credit score. Doing so doesn’t simply improve your standing in the eyes of lenders, but it can also save you thousands of dollars in interest payments over the course of your lifetime.
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A 650 Credit Score Is Well On The Way To Good Credit
Even though a 650 credit score is still only considered “fair”, it’s a significant step up from the lowest category of “bad” credit. Wisely using some of the credit products that become available at a score of 650 can help you continue to build an effective, good credit history.
If you’ve been working to improve your credit, 650 is when you’ll begin to see more potential approvals for auto loans and mortgage lenders, so you know you’re on the right track. Stay cognizant of your payment habits, and you’ll be on the way up from 650.
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How Can I Raise My Credit Score
There are five main factors that make up your credit score. Each plays a role in raising your score, but some carry more importance than others.
Payment history makes up 35% of your score. This looks at your mix of on-time payments and late payments of 30 days or more.
Banks obviously want to see every payment happen on time, and even just one late payment will make your score drop by as much as 100 points.
Late payments sit on your credit report for up to seven years. But, as they get older, and you replace them with on-time payments, they dont hold your credit score down as much as they did when they were new.
So, making on-time payments is the best way to raise your score but it also takes time.
makes up 30% of your score. You can calculate your current utilization by dividing your current credit card balance by your overall credit limit. For example, a card with a $1,000 credit limit and a $500 current balance has a 50% utilization rate.
Banks want to see low utilization because it shows that youre responsible with credit and arent overwhelmed by credit card debt. If you have high utilization, issuing banks could be hesitant to extend you more credit.
You can lower your utilization and increase your credit score by paying down existing debts and making more than the minimum monthly payment. The length of your credit history determines 15% of your credit score. Banks want to see a consistent track record of credit success.
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How To Boost A 650credit Score
Taking the threemonths or so to increase your credit score isnt usually an option if you needmoney fast but its definitely something to think about for the future. With a650 FICO score, youre on the edge of getting into prime credit where youllstart getting approved at traditional banks and start seeing your rates go downon any loan.
Even if you do havesome time before you absolutely need a loan, getting a short-term starter loancan be one of the best ways to build credit and lower your rates. Peer-to-peerloan sites build into their lending process a preference for second-timeborrowers. Not only will paying off your initial loan help build a good credithistory and increase your score, youll also get those few extra points in thelending process that can mean a lower rate on your next loan.
Increasing your credit score has to start with knowing whats on your . You can download your report free from each of the three credit bureaus once a year to check whats going on your report.
- Check for any errors like missed payments or collections that are not supposed to be on your report. Getting these removed by writing the credit bureau is the fastest and easiest way to boost our FICO.
- Pay down any revolving debt on credit cards or pay it off completely with a consolidation loan. Creditors hate seeing credit card debt because rates are so high and you can borrow more on the card at any time. Wipe this off your credit report and your score is guaranteed to increase.
Top Student Cards For 600 To 650 Credit Scores
As a student just starting to build credit, its natural to have a low credit score or not have a score at all . But, a low credit score probably wont stop you from getting a good credit card so long as youre a student.
Thats because student credit cards are purposely designed for young people who need to build credit, and student cards tend to have very flexible credit requirements and no minimum credit history requirements. Plus, student cards typically charge no annual fee and many also offer purchase rewards and other perks.
The Bank of America® Cash Rewards for Students is a competitive rewards card for college students with no annual fee that allows users to select their own 3% cash back bonus category from a list of six options.
- Earn 3% cash back in the category of your choice & 2% at grocery stores and wholesale clubs
- Earn 1% cash back on everything else
- Pay no annual fee
Cardholders can also earn a modest signup bonus and an introductory 0% APR offer. Bonus cash back is limited to the first $2,500 in combined category purchases each quarter.
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