Factors That Affect Credit Scores
So, you can see credit-scoring models and credit reports are two big factors that determine your credit score. But if you donât know what information from your credit report is being used, itâs not much help.
Here are a few factors the CFPB says âmake up a typical credit scoreâ:
- Payment history: How well youâve done making payments on time.
- Debt: How much current unpaid debt you have across all your accounts.
- A ratio that reflects how much of your available credit youâre using compared with how much you have available. is usually expressed as a percentage.
- Loans: How many loans and what kinds they are, such as revolving credit accounts and installment loans. Sometimes this is called your credit mix.
- How long youâve had your accounts open. But remember, what qualifies as your oldest line of credit depends on whatâs being shown in your credit reports.
- New credit applications: How many times youâve applied recently for new credit. The effect on your scores might be minor, but a lot of new hard credit inquiries could still give a negative impression to lenders.
How Does FICO View Those Credit Factors?
FICO is pretty specific about what it views as the most important credit factors: Payment history makes up about 35% of its scoring. About 30% is based on the total debt. The other primary factors are credit history , credit mix and new credit .
How Does VantageScore View Those Credit Factors?
Ways To Reduce Your Auto Loan Interest Rate
With a credit score between 650 and 659, you are going to qualify for non-prime loans at a much higher interest rate than if you were able to increase your credit score to 700+.
Because you are so close to receiving prime credit score rates it may make sense to consider spending 30, 60, or 90 days building your credit.
The time and money spent would put you in a lower risk bracket and open the doors to much more financial freedom and better opportunities.
You can start by checking out our 90 day Credit Sprint for a personalized credit building plan. I know it works because I personally increased my credit score over 100 points in under 60 days.
Another option to get a vehicle loan with a lower interest rate would be to ask a family member to co-sign on the loan.
The co-signer would become the primary borrower and you would be the secondary borrower.
They would be responsible for making the payments on the loan if you failed to do so, but you would qualify for an auto loan based on their credit score and not yours.
If you know someone with a good credit score, it may not hurt to ask them to be your co-signer.
Additional Auto Loan Resources
Best Auto Loan Rates With A Credit Score Of 650 To 659
A review of the best auto loan rates for new, used & refinanced vehicles based on credit scores between 650 to 659.
If you have a credit score between 650 and 659 then you are right on the edge of a better interest rate.
Most lenders will give you an interest rate break if you have a credit score of 660 or higher.
Disclaimer: Credit score refers to the FICO score in this article. If you have a different score , that does not likely equal your FICO. For example, a 645 VantageScore could equal any FICO score 643, 644, 645? Who knows? You can get your FICO score here.
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How To Build A Good Credit Score
When it comes to monitoring your credit, makes it easy. Itâs free for everyoneânot just Capital One customers. And checking wonât hurt your scoreâa major plus if youâre working to improve a bad credit scoreâso you can check it as often as you like.
Can I Get A Mortgage & Home Loan W/ A 652 Credit Score
Getting a mortgage and home loan with a 652 credit score is going to be difficult. Can it be done? Maybe, but thereâs a few simple steps you can take to guarantee less headaches and higher chance of success.
The #1 way to get a home loan with a 652 score is repairing your credit.
After a few short months of repairing your credit , youâll be in a much better position to get your ideal home loan terms.
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Can I Get A Car / Auto Loan W/ A 652 Credit Score
Trying to qualify for an auto loan with a 652 credit score is expensive. Thereâs too much risk for a car lender without charging very high interest rates.
Even if you could take out an auto loan with a 652 credit score, you probably don’t want to with such high interest.
There is good news though.
This is completely avoidable with a few simple steps to repair your credit.
Your best option at this stage is reaching out to a credit repair company to evaluate your score and see how they can fix it.
Conventional Loan With 652 Credit Score
The minimum credit score requirement to get a conventional loan is 652. In order to qualify for a conventional loan, you will need to meet all other loan requirements. This includes having at least 2 years of steady employment, a down payment of at least 3-5%, and no recent major credit events .
Would you like to find out if you qualify for a conventional loan? We can help match you with a mortgage lender that offers conventional loans in your location.
Credit Score Is It Good Or Bad How To Improve Your 652 Fico Score
Before you can do anything to increase your 652 credit score, you need to identify what part of it needs to be improved, plain and simple. And in order to identify what needs to be improved, you should probably be aware of all the things that count and dont count towards your score.
Tips On How To Get A Good Credit Score
Dont lose hope if you do have an application rejected by your bank, as South Africas leading home loan comparison service, ooba Home Loans, can apply to multiple banks on your behalf, and have been successful in securing home loan financing for two in every three applications that are initially turned down by their bank.
ooba Home Loans also offer a range of home loan calculators to help make the home-buying process easier. Start with their Bond Calculator, then use their Bond Indicator to find out what you can realistically afford. Then, when youre ready, you can apply for a home loan with ooba Home Loans.
Do you know your credit score?
Check your credit score for free in minutes.
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Check Your Credit Reports And Dispute Any Inaccuracies
A good start to building good credit is checking your credit reports. It seems simple, but regularly reviewing your reports can help you identify any errors that could be negatively affecting your credit. Checking your reports often can also help you spot signs of identity theft before they wreak havoc on your credit.
If you do find errors or suspicious discrepancies on your reports, disputing them could help you get them removed and ultimately improve your scores.
Monitor Your Credit Score From Now On
You dont want to become obsessive about this, but you do need to have a general idea where your credit score is at any time. At a minimum, a serious negative change in your credit score can indicate either an error on your report or even fraudulent activity. Only by knowing what your credit score is on a regular basis will you be able to detect and deal with either situation.
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Your Credit Karma Score May Be Insufficient
Credit Karma updates its scores once per week. For most people that’s plenty, but if youre planning to apply for in the near future, you may need a more timely update.
Although VantageScore’s system is accurate, its not the industry standard. Credit Karma works fine for the average consumer, but the companies that will approve or deny your application are more likely to look at your FICO score.
What Does Not Count Towards Your 652 Credit Score
There are many things that people assume go into their 652 credit scores but that actually dont. Examples include how much money you earn, your age, your marital status, your child support payments , how much money you have donated to charity, where you work or live, or your employment history.
None of these things or anything like them do anything at all to your credit score, so instead, focus on the five primary factors that we outlined and discussed above.
Now that you know what counts towards your overall credit score and what does not, you should know exactly what you need to pinpoint in order to enhance your score. For example, maybe one reason your credit score is low is because youve opened several new accounts of credit.
Regardless, its important at this stage for you to positively identify what it exactly is that is lowering your credit rating. Once you have identified what that is, you can start to formulate a plan.
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The Diesel brand is renowned for its avant-garde side and limitless daring. Particularly appreciated by young people, she does not hesitate to bring a rock n roll touch to the world of luxury. However, this is precisely how Diesels new Sound of the Brave perfume was developed in 2021. Imagined as a hip-hop piece, it does not hide its determination and encourages the wearer to display its true face and punching the table. Like the rest of Diesels The Brave family, its for those who live bravely, strive to achieve their dreams, succeed with determination, and never give up!
What Qualifies As A Good Credit Score
For those who arent as familiar with their credit score, its a three-digit number that encompasses all your credit-related activity into one cumulative average. In Canada, credit scores range anywhere from 300 to 900. The higher your credit score is, the better your chances are of getting approved for various loans and other credit products. Generally speaking, a score of 650 and above is considered good and means that you are a low default risk and a better candidate for lending. A credit score of 750 or higher is deemed excellent.
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The Three Credit Reporting Agencies And Different Types Of Credit Scores
Equifax, Experian, and TransUnion are three major credit reporting bureaus. Each credit agency provides you with a credit score, and these three scores combine to create both your 652 FICO Credit Score and your VantageScore. Your score will differ slightly among each agency for many reasons, including their unique scoring models and how often they access your financial data. Monitoring of all five of these credit scores on a regular basis is the best way to ensure that your credit score is an accurate reflection of your financial situation.
So What Is A Good Credit Score
Now we know what an average credit score looks like, you might be wondering what makes a âgoodâ credit score. According to the information from the credit reference agencies above, youâd need to score these figures to be eligible for the more attractive credit deals:
Equifax â 420 +
TransUnion â 604 +
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How To Improve 652 Credit Score
With a credit score of 652, youre already on the right track to receiving good credit. It all lies, however, with the efforts you put in to physically improving your score. The following suggestions will be important if you wish to turn your fair credit into good credit:
What’s In A Credit Score
Here’s a more detailed breakdown of the specific factors that influence your FICO® Score:
Public Information: If bankruptcies or other public records appear on your credit report, they can have severe negative impacts on your credit score.
Among consumers with a FICO® Score of 652, the average credit card debt is $13,429.
Payment history. Delinquent accounts and late or missed payments can harm your credit score. A history of paying your bills on time will help your credit score. It’s pretty straightforward, and it’s the single biggest influence on your credit score, accounting for as much as 35% of your FICO® Score.
. To determine your , add up the balances on your revolving credit accounts and divide the result by your total credit limit. If you owe $4,000 on your credit cards and have a total credit limit of $10,000, for instance, your credit utilization rate is 40%. You probably know your credit score will suffer if you “max out” your credit limit by pushing utilization toward 100%, but you may not know that most experts recommend keeping your utilization ratio below 30% to avoid lowering your credit scores. Credit usage is responsible for about 30% of your FICO® Score.
Total debt and credit. Credit scores reflect your total amount of outstanding debt you have, and the types of credit you use. The FICO® Score tends to favor a variety of credit, including both installment loans and revolving credit . Credit mix can influence up to 10% of your FICO® Score.
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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 Does A 662 Credit Score Get You
As you can see, most people who are at least 35 years old have a credit score of 650 or higher. And even younger folks nearly have a majority. This just goes to show that people with 650 credit scores come in all shapes and sizes, with diverse backgrounds and differing financial obligations.
As a result, the grades for each component of your credit score, which you can find on the Credit Analysis page of your free WalletHub account, might not exactly match those of another individual with a 650 score. But the sample scorecard below will give you a pretty good idea of what a 650 score is made of.Sample Scorecard 662 Credit Score:
- Payment History: C = 98% on-time payments
- B = 10% – 29% utilization
- Debt Load: A = Debt-to-income ratio below 0.28
- Account Age: B = Average tradeline is 7 or 8 years old
- Account Diversity: C = 2 account types or 5 – 9 total accounts
- Hard Credit Inquiries: A = Fewer than 3 in past 24 months
- Collections Accounts & Public Records: A = 0 collections accounts and public records
These are by no means the only credit-score grades capable of producing a score of 650, nor will they necessarily result in that exact rating. However, this is representative of the type of scorecard someone with a 662 credit score can expect: plenty As and Bs, but no failing grades to be found.
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