Although you are typically regarded as a subprime consumer if your credit score is 648, this won’t always stop you from borrowing money. As of 2021, the average FICO credit score in the US is 714; scores between 580 and 669 are regarded as “fair” credit scores.
This post will explain what your 648 credit score indicates, whether you can get a particular kind of loan, and what you can do to raise your credit score.
Is a credit score of 648 good? It’s not terrible, but it’s also not excellent. It is in the fair range, so you may encounter some difficulties when attempting to apply for credit cards or loans with advantageous terms and interest rates. Fortunately, there’s good news! Credit building is a journey that you can take to raise your score and get access to better financial opportunities.
What Does a 648 Credit Score Mean?
A credit score is a three-digit number that represents your creditworthiness, or how likely you are to repay borrowed money. Scores range from 300 to 850, with higher scores indicating better credit. A score of 648 falls within the fair range, which is generally considered middle of the road. It’s not as good as a good or excellent score, but it’s not as bad as a poor score.
Here’s a breakdown of the credit score ranges:
- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-850: Excellent
What Can You Do With a 648 Credit Score?
While a 648 credit score might not open all doors you still have options. You may be able to qualify for unsecured credit cards (cards that don’t require a security deposit), but they may come with higher interest rates and annual fees. You might also be able to get auto loans or mortgages, but the terms may not be as favorable as those offered to borrowers with higher credit scores.
How to Improve Your Credit Score
The good news is that you can gradually raise your credit score by taking certain actions. Here are some tips:
- Pay your bills on time: This is the single most important factor in your credit score. Make sure you pay all your bills, including credit card bills, utility bills, and rent, on time every month.
- Keep your credit utilization low: This refers to the amount of credit you’re using compared to your total available credit. Aim to keep your credit utilization below 30%.
- Check your credit reports for errors: Mistakes on your credit reports can negatively impact your score. Regularly review your reports and dispute any errors you find.
- Build a positive credit history: Apply for and use credit responsibly. This will show lenders that you’re a reliable borrower.
- Consider becoming an authorized user on a credit card with good credit: This can help you build credit without having to open a new account.
Building a good credit score takes time and effort, but it’s worth it. A higher credit score can save you money on interest rates, help you qualify for better loans and credit cards, and even get you lower insurance premiums.
Here are some additional resources that you may find helpful:
- Credit Karma: This website provides free credit scores and reports, as well as tips on how to improve your credit.
- Experian: This credit bureau offers a free credit report and score every 30 days.
- Equifax: This credit bureau offers a free credit report and score every 7 days.
- TransUnion: This credit bureau offers a free credit report and score every 14 days.
Remember, improving your credit score is an investment in your financial future. By taking the time to build good credit, you’ll be setting yourself up for success.
What does an 648 credit score mean?
As mentioned, credit scores within the 580-669 range are considered to be fair credit. Even though your credit score is below average, it isn’t considered “bad credit,” so you shouldn’t be prevented from applying for certain loans because of it.
With your 648 credit score, lenders will generally consider you to be a higher-risk borrower. This implies that in order to have your loan approved, you’ll probably need to meet strict requirements regarding your employment, income, and other debts. Additionally, your loan interest rate will probably be higher than that of borrowers with excellent credit.
Can I get a mortgage with an 648 credit score?
Yes, your 648 credit score can qualify you for a mortgage. And you have a couple of main options.
If your credit score is 580 or higher, you can get an FHA loan with just a 3 percent down payment to purchase a home. 5%. Although these Federal Housing Administration-guaranteed loans have drawbacks (like the need for FHA mortgage insurance), they can be a fantastic choice for people who wish to buy a home.
To get a conventional mortgage, the minimum credit score requirement is 620 per Fannie Mae’s lending standards. However, a credit score on the lower end of the spectrum comes with certain caveats. For instance, in order to obtain a conventional loan with a percentage of 20620, you will need to have a maximum debt-to-income ratio of 2036% and be ready to make a down payment of 2025%. You can obtain a conventional loan with as little as 5% down payment (or even 3% in certain cases), but the minimum credit score needed to qualify for this loan is 660 based on the most recent Fannie Mae underwriting guidelines.
640 – 659 Credit Score: Key Things to Know
FAQ
Can I get a loan with a 648 credit score?
Is 648 a good credit score to buy a car?
Is 648 a good credit score to buy a house?
Is 700 a good credit score?
Can I get a personal loan with 648 credit score?
Even with 648 credit score, you can receive even an unsecured personal loan. The situation is much more complex than just having poor credit; there’s other things that go along with it. There are some companies out there who will only lend to individuals with good or excellent credit.
How to get a car loan with 648 credit score?
Best for new/used cars or refinancing. Receive online certificate or check within 24 hours and use your check to buy the car you want or use it to refinance your current loan People with 648 credit score generally can get approved for a car loan as long as they have steady income that they can prove or if they have a co-signer.
What is a good credit score?
The most widely recognized credit scores, like those developed by FICO and VantageScore, usually fall in the 300 to 850 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.
Is a 648 credit score a fair score?
Our content is accurate to the best of our knowledge when posted. A 648 credit score is generally a fair score. While a lot of people have fair scores, you may still find it difficult to get approved for credit without high fees and interest rates with a score in this range. “Fair” score range identified based on 2023 Credit Karma data.