How is 653 credit score

Credit scores are numbers that lenders use to help decide how risky you might be to lend to. Higher scores signal to lenders that you may be more likely to pay back any money you borrow. Even though a fair credit score can be relatively middle-of-the-road, having fair credit can make it tough to qualify for certain loans and credit cards.

But how can you tell exactly how good your credit is? The most widely recognized credit scores, like those developed by FICO and VantageScore, usually fall in the to range. But some scores use different ranges.

Credit-scoring models rely on a variety of factors to calculate your scores, drawing on credit-report data from the three main consumer credit bureaus. Though that leaves some room for ambiguity, your credit scores can still give you an idea of what to expect as you shop for loans or credit cards. Understanding your credit scores is one of the first steps to building your credit.

And building your credit could help you access better terms and rates when you need to borrow money — whether for a car, a house or even your next credit card.

Auto loan rates for fair credit Mortgage rates for fair credit Personal loans with a credit score Building your credit The best way to build your credit from fair to good and beyond depends on your specific credit profile. But there are some overall healthy credit habits you can practice. 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.

Generally speaking, the lower your credit utilization rate, the better for your scores. You can decrease your credit utilization rate by paying off debt and not charging more to your existing credit cards.

Public Information : If bankruptcies or other public records appear on your credit report, they can have severe negative impacts on your credit score. 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.

Credit usage rate. To determine your credit utilization ratio , add up the balances on your revolving credit accounts such as credit cards and divide the result by your total credit limit.

Length of credit history. Credit scores generally benefit from longer credit histories. There's not much new credit users can do about that, except avoid bad habits and work to establish a track record of timely payments and good credit decisions. Total debt and credit. Credit scores reflect your total amount of outstanding debt you have, and the types of credit you use.

Recent applications. When you apply for a loan or credit card, you trigger a process known as a hard inquiry, in which the lender requests your credit score and often your credit report as well. A hard inquiry typically has a short-term negative effect on your credit score. As long as you continue to make timely payments, your credit score typically rebounds quickly from the effects of hard inquiries.

Checking your own credit is a soft inquiry and does not impact your credit score. Fair credit scores can't be turned into exceptional ones overnight, and only the passage of time can repair some negative issues that contribute to Fair credit scores, such as bankruptcy and foreclosure.

No matter the reason for your Fair score, you can start immediately to improve the ways you handle credit, which can lead in turn to credit-score improvements.

Look into obtaining a secured credit card. A secured credit card requires you to put down a deposit in the full amount of your spending limit—typically a few hundred dollars. Confirm that the As you use the card and make regular payments, the lender reports your activity to the national credit bureaus, where they are recorded in your credit files.

Once you pay off the loan, you get access to the money plus any interest accrued. Those with a credit score of can qualify for a down payment as low as 3. Some auto lenders will not lend to someone with a score. If you are able to get approved for an auto loan with a score, it could be expensive. If you can raise your credit score, it will be much easier to get a car.

Credit scores in the Fair range often reflect a history of credit mistakes or errors. You may have some late payments, charges offs, foreclosures, and even bankruptcies reporting. If you find any negative items, you may want to hire a credit repair company such as Lexington Law to help you dispute them and possibly have them removed. Improve Your Score - Once negative items begin falling off your report, you'll see a big boost to your score. This means better loan terms on a car, house, or personal loan.

The 1 way to get a home loan with a score is repairing your credit. There is good news though. This is completely avoidable with a few simple steps to repair your credit. It depends where you started out. How To Improve A Credit Score Work on removing all negative accounts such as collections, charge-offs, medical bills, bankruptcies, et al.

Give them a call It's generally much faster if you worked with Credit Glory, and they happen to have incredible customer service. Why choose Credit Glory? Sign up. Schedule Your Free Consultation. Negative Items.