Improving Your Credit Score
Fair credit scores can’t be made into exceptional ones overnight, and bankruptcies, foreclosures and some other negative issues that contribute to Fair credit scores only resolve themselves with the passage of time. But no matter the cause of your Fair score, you can start handling credit more, which can lead in turn to credit-score improvements.
Seek a secured credit card. A secured card can benefit your credit score, even if you don’t qualify for traditional credit cards. Once you’ve confirmed that the lender reports card activity to the national credit bureaus, you put down a deposit in the full amount of your spending limittypically a few hundred dollars. When you use the card and make regular payments, those activities will be recorded in your credit files. And as long as you keep your usage rate on the card below about 30%, and stay on schedule with your monthly payments, they’ll help you build stronger credit.
Pay your bills on time. If you could do only one thing to improve your credit score, nothing would help more than bringing overdue accounts up to date, and avoiding late payments as you move forward. Do whatever you can to remind yourself to pay the bills on time: Use automatic payments, set calendar alarms, or just write yourself notes and pin them where’s you’ll see them. Within a few months you’ll train yourself in habits that promote higher credit-scores.
Among consumers with FICO® credit scores of 646, the average utilization rate is 67.9%.
Regularly Read Your Reports
Since your credit score is based off of the information in your credit report, take time to review your reports regularly. You want to be sure everything is an accurate, true reflection of your financial story. As you become more comfortable reading and understanding the data in your report, the easier it is to identify which information is potentially causing changes in your credit score.
To help you understand your credit report, weve created an interactive guide that breaks down each section and explains how the information may impact your credit score.
Disclaimer: The information posted to this blog was accurate at the time it was initially published. We do not guarantee the accuracy or completeness of the information provided. The information contained in the TransUnion blog is provided for educational purposes only and does not constitute legal or financial advice. You should consult your own attorney or financial adviser regarding your particular situation. For complete details of any product mentioned, visit transunion.com. This site is governed by the TransUnion Interactive privacy policy located .
Steering Clear Of Bankruptcy
Bankruptcy is a highly feared word in the world of finances. Its something that we all hope we will never have to endure the mere thought or possibility of it is enough to make us quiver in fear.
Bankruptcy is definitely not something that should be underestimated. It will be one of the biggest blows not only to your finances, but to your state of mind and well-being as well. Plain and simple, a bankruptcy is something that you want to avoid at all costs. And as you may have guessed, a bankruptcy is not going to look good on your credit report .
But while it is universally acknowledged that bankruptcy is something that you should try to avoid at all costs, there are still many mistaken beliefs that surround how to avoid it, too. A bankruptcy will immediately lead to a huge drop in your credit rating and will be visible on your report for over ten years at least. This means that if your credit score has already fallen thanks to late/missed payments or defaults, with a bankruptcy, things arent exactly going to look so sunny.
What if you are forced to file for bankruptcy? Is it still possible to rebuild your credit?
Yes, it still is. Even though your bankruptcy will be listed on your report for ten years, you can still slowly but steadily rebuild your credit by paying each of your bills when you need to. In this scenario, however, its vitally important that you repay each of those bills without exception.
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How To Turn A 646 Credit Score Into An 850 Credit Score
There are two types of 646 credit score. On the one hand, theres a 646 credit score on the way up, in which case 650 will be just one pit stop on your way to good credit, excellent credit and, ultimately, top WalletFitness®. On the other hand, theres a 646 credit score going down, in which case your current score could be one of many new lows yet to come.
Everyone obviously wants his or her credit score to be on an upward trajectory. So whether you need to turn things around or increase the pace of your improvement, youd better get to work. You can find personalized advice on your WalletHub credit analysis page, and well cover the strategies that everyone can use below.
How To Improve Your 646 Credit Score
Think of your FICO® Score of 646 as a springboard to higher scores. Raising your credit score is a gradual process, but it’s one you can begin right away.
74% of U.S. consumers’ FICO® Scores are higher than 646.
You share a 646 FICO® Score with tens of thousands of other Americans, but none of them has that score for quite the same reasons you do. For insights into the specific causes of your score, and ideas on how to improve it, get copies of your and check your FICO® Score. Included with the score, you will find score-improvement suggestions based on your unique credit history. If you use those guidelines to adopt better credit habits, your score may begin to increase, bringing better credit opportunities.
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Credit Score Mortgage Loan Options
A credit score of 646 will get you the best mortgage loan options. A good credit score is essential when looking for a mortgage, so do your research and know where you stand. Your credit rating can affect the terms of your loan and the interest rate you will receive. By understanding how credit scores work and what goes into them, you can take steps to improve your rating and get closer to that 646 mark. Knowing what kinds of mortgages are available to you at this level will help ensure that you get the best deal possible on your new home.
Best Auto Loan Rates With A Credit Score Of 640 To 649
Summary: A review of the best car loan rates for new, used & refinanced vehicles for borrowers with credit scores between 640 and 649.
Auto lenders classify a score of 640 to 649 as non-prime or near prime credit. Your score is below the national average of 710, but its not in the subprime range, where you have to work to find a lender. You will be eligible for just about any new, used, or refinance automobile loan on the market, but you wont get the best interest rates.
Your credit isnt the only factor affecting your interest rate. Youll have to decide whether to finance through the car dealer, your local bank or credit union, or an online lender. Your down payment and the term of your loan also make a difference. Lets take a close look at auto loan rates for borrowers with credit scores between 640 and 649.
Disclaimer:Credit score refers to the FICO score in this article. If you have a different score , that does not likely equal your FICO score. Also, theres a special version of the FICO score used for auto lending the FICO Auto Score. This is the score that is most likely going to be used to determine your terms and rates. You can get your FICO Auto Score here.
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Capital One Quicksilverone Cash Rewards Credit Card
Our pick for: Flat-rate cash back
This card for people with fair or “average” credit pays the same cash-back rate as the regular Quicksilver card, which targets people with excellent credit. The key difference is that this version charges an annual fee while the regular one does not. Read our review.
Pay All Your Bills On
A late payment here, a collection there, may seem fairly harmless at the time especially if youre in a cash crunch. But those are the stuff of fair and poor credit, and you need to avoid them at all costs.
One advantage you have with bad credit is that it becomes less important as time goes on. The sooner you begin paying your bills on time, the older the derogatory information will become, and the higher your credit score will be. So start paying all your bills on time all the time, now.
Dont forget landlords and utility companies either. They will report to the credit bureaus if you have unpaid balances.
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Understand 3 Bureau Credit Reports And Fico Scores
For the soft credit checks, there are bodies and agencies involved in this. They simply go to banks and any other credit institution that you have account with not excluding the local credit institution e.g. Cooperative society, e.t.c. As I said earlier, this check does not affect your credit or your earnings. It is from these agencies the creditors get their soft checks information about your credits reports from. We have three major of these credit score agencies or bureaus:
I said major credits score bureaus because we have numerous credit score bureaus but those are they three major bureaus. The bureaus do not work together meaning so many times credits report of each bureau are not consistent with each other.
The credits report of the same person may be different across each bureau which is not supposed to be so. So how do we maintain balance? This is where FICO score enters.
Fair Isaac Corporation are not another credit bureau that goes about to gather credit reports as other credit agencies does but instead they are just there for check and balancing. Making sure all credits reports from all bureaus are consistent with each other and how did they achieve this? They achieve this basically by going to the credit bureaus to gather reports and they try to bring and juxtapose them together to reach a balance point of consistent credit reports across the credit bureaus. They therefore, come out with FICO score.
Getting A Credit Account With A 646 Credit Score
With a credit score of 646, youll be able to get a credit card, but you might not have a lot of options other than subprime credit cards, and you wont be able to get rates as good as those offered to people in higher credit score ranges.
The types of credit cards you can get with a credit score of 646 generally fall into two categories:
- Secured credit cards: With these cards, creditors mitigate their risk by requiring you to pay a security deposit, which theyll keep if you default on your debt.
- Unsecured cards with high interest rates: With these, creditors compensate for the lack of a security deposit by charging very high interest rates and additional fees .
Given the choice between those two options, a secured credit card is always your best bet if your main goal is to build your credit. Unsecured subprime credit cards can be dangerous because their high interest rates and fees might jeopardize your finances.
Dont apply for a credit card if you know your credit score doesnt meet the companys requirements. Most applications will trigger a hard inquiry, which will cause your score to temporarily drop. To find out if the card issuer has a minimum credit score, check their website or give them a call.
Takeaway: A 646 credit score is below average, but its not far off from a good credit score.
Additional Credit Scores
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Auto Loan Rates For Fair Credit
Theres no single minimum credit score needed for a car loan. But generally speaking, credit scores in the fair range may limit your options to loans with higher rates and less favorable terms.
Building your credit over time is a good way to potentially get access to better terms, but thats not an overnight process. If youre on a shorter time frame, there are a few things you can do to help.
Compare car loans on Credit Karma to see your options.
What An Excellent/exceptional Credit Score Means For You:
Borrowers with exceptional credit are likely to gain approval for almost any credit card. People with excellent/exceptional credit scores are typically offered lower interest rates. Similar to “exceptional/excellent” a “very good” credit score could earn you similar interest rates and easy approvals on most kinds of credit cards.
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Is 646 A Good Credit Score
A credit score of 646 is considered to be a “fair” credit score. This means that you should be able to qualify for some loans and credit cards. However, you may not get the best interest rates or terms on these products.Credit scores are utilized by lenders to decide if they will provide a loan to an individual. They are also used by landlords as a factor in their decision of whether or not to rent to someone. A good credit score means that the person is a low-risk borrower, and a bad credit score means that the person is a high-risk borrower.
A majority of U.S. consumers have a credit score that is greater than 646.
Whats Considered A Good Credit Score
If youre trying to build or maintain healthy credit, knowing whats considered a good score can be helpful. A good credit score can help you get approved and lock in better rates for loans and other credit.
Higher is generally better, but its hard to say specifically what a good score is. Whats considered a good score can differ by lender and the type of credit youre applying for. The score you see when you obtain credit monitoring or buy a credit score along with your credit report may not be the score that the lender is using. There are also different scoring models. That said, read on to learn what a good credit score range is when you check your score with TransUnion. Plus, youll find tips on how to maintain healthy credit.
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What Can You Do With A 646 Credit Score
A Fair-ranking credit score of 646 means that borrowers will face some challenges when attempting to qualify for a new loan, a new credit card, or a new line of credit. Credit scores of 646 can mean that even when approved, consumers will face increased interest rates and the possibility of higher fees.
Consult the below details for even more information on the opportunities available to individuals with 646 credit scores.
- Rewards-based credit cards offer incentives to borrowers after a transaction.
- While its not likely that you will qualify for one of the best rewards-based credit cards with a credit score of 646 featuring perks that can include airline miles, hotel points, and restaurant rewards you can still obtain a credit card that offers 0% financing and benefits from your favorite stores.
Recognize That Your Rates Can Increase
Currently, credit card companies cannot raise your credit rate for at least one year after you have opened your account, unless any of the following circumstances apply:
- A six month introductory rate exists
- You are late paying your bill by sixty days
- You have a card with a variable rate that is tied to an index and that index increases
You need to recognize that your credit rates will increase in the future, at least after the initial twelve months, and you need to establish with your potential creditor exactly when your rates will increase, by how much, and if there is anything you can do to lower your rates.
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What Is Considered A Good Credit Score
Generally speaking, a credit score is a three-digit number ranging from 300 to 850. … Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair 670 to 739 are considered good 740 to 799 are considered very good and 800 and up are considered excellent.
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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