Is a 650 Credit Score Good Enough?
February 1st, 2009, Written By: admin
In today’s economy, a 650 credit score is by no means considered great credit. About a year ago a rating in this range would have allowed you to get a favorable loan at some of the best rates, but things have changed.
Since the credit crisis, lenders, creditors and banks have been forced to tighten their belts and raise their standards. In many cases a 650 credit score won’t even allow you to qualify for a loan at all — let alone a good loan. Unfortunately this is hurting a lot of people who need to buy a car or are trying to purchase a new home.
The reality is that a 650 credit score in the past is the equivalent of a 750 credit score today. That 100 point swing is a big difference that most Americans do not meet. A 750 means you have:
- Near Perfect Credit
- Always Pay Your Bills on Time
- No Excessive Credit
- No Recent Collections
Unfortunately this is the new standard and consumers need to take their credit score more seriously. No longer are the days that a few small errors would be okay in the eyes of the lender. You need to prove that you have a history of borrowing money responsibly.
If you are buying a home or car, you may also be surprised to find that not only is your 650 credit score no longer good enough, but you will be required to put down a larger down payment as well. Banks are in a panic and they are being very cautious with the people they lend their money to.
Those planning to make a large purchase are encouraged to download their credit score and reports early. It is possible to increase your credit rating within 30 days time, but that can’t be done without knowing your current situation and where it needs to be.
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Categories: Credit Score Information
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