What is a Bad Credit Score? (2024)

FAQs

What is a Bad Credit Score? ›

Poor: 300-579. Fair: 580-669. Good: 670-739. Very Good: 740-799. Exceptional: 800-850.

Your score falls within the range of scores, from 580 to 669, considered Fair. A 600 FICO^® Score is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.

Additionally, because a 700 FICO^® Score is on the lower end of the Good range, you'll probably want to manage your score carefully to prevent dropping into the more restrictive Fair credit score range (580 to 669). 40% of consumers have FICO^® Scores lower than 700.

As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

Your score falls within the range of scores, from 300 to 579, considered Very Poor. A 500 FICO^® Score is significantly below the average credit score. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on grounds they have unfavorable credit.

To get a conventional mortgage, the minimum credit score requirement is 620 per Fannie Mae's lending standards.

Yes, you can buy a house with a 600 credit score — but it would be less challenging if your score were higher. A 600 score will not be high enough to qualify for a conventional home loan, so look into FHA loans, which have lower requirements: 500 with a 10 percent down payment, and 580 with a 3.5 percent down payment.

While achieving a CIBIL Score of 900 is technically possible, it is extremely rare. Scores above 760 are considered very good or exceptional, providing significant benefits such as lower interest rates and higher chances of loan approval.

Probably. Credit score is certainly not the only factor at play when lenders look at mortgage applications, but generally, a higher score will allow you to secure a lower mortgage rate. Typically, conventional lenders want to see a score of at least 620.

Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.

What credit score do I need to get a 10000 loan? ›

In the FICO (that is, Fair Isaac Corporation) scoring model, scores range from 300 to 850. This number is designed to signal to potential lenders how risky a particular borrower is. If your credit score lands between 300 and 579, it is considered poor, and lenders may see you as a risk.

Yes, your 649 credit score can qualify you for a mortgage. And you have a couple of main options. With a credit score of 580 or higher, you can qualify for an FHA loan to buy a home with a down payment of just 3.5%.

It is possible to qualify for an FHA loan with a credit score as low as 500, although you won't get the standard 3.5% down payment these loans are known for. Borrowers without a FICO Score of at least 580 need to put 10% down.

Your credit score helps lenders decide if you qualify for products like credit cards and loans, and your interest rate. A score of 750 puts you in a strong position. Roughly 48% of Americans had a score of 750 or above as of April 2023, according to credit scoring company FICO. FICO Blog.

A 600 credit score is rated as fair by Equifax and TransUnion and this means although you may be approved for a mortgage you won't benefit from the best rates. However, if your 600 credit score is with Experian then you have a poor credit rating.

The truth of the matter is, a 600 credit score is still a low credit score. So you'll be able to qualify for home loans, yes, but only if these are FHA loans (if you want your pick of any house in the country). If you really want more options, and a less expensive mortgage, improving your credit is the only way.

If you have an 630 credit score, you are generally considered a subprime consumer, but it won't necessarily prevent you from borrowing money. The average FICO credit score in the United States is 714 as of 2021, and scores within the 580-669 range are considered to be “fair” credit.

And all you gotta do to join the 800 Club is pay every bill, every month on time and be ultra, ultra conservative about using a credit card for spending.