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653 Credit Score: Is It Good Or Bad (+ Can I Fix It)?

  • A 653 credit score is considered "fair," limiting loan access and resulting in higher interest rates.
  • To improve this score, focus on timely payments and managing credit card balances.
  • Contact The Credit Pros for personalized support; we can help you potentially boost your score and enhance your financial future.

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A 653 credit score falls into the "fair" category. This score gives you some access to loans, but you’ll likely face higher interest rates and less favorable terms. If you’re curious about why your score lands here, it often stems from missed payments, high credit utilization, or a short credit history. Tackling these issues can help improve your score.

To raise your score, focus on making payments on time, lowering credit card balances, and keeping older accounts open. Check your credit report for errors too, as that can make a difference. You might also consider secured credit cards or credit-builder loans to build a better payment history. These steps can effectively boost your 653 score.

For personalized support, give The Credit Pros a call. We’ll have an easygoing chat to review your credit report and create a plan that fits your situation. Don’t hesitate—taking action now can lead to a healthier credit score and better financial options for you.

On This Page:

    Why Is My Credit Score Only 653?

    Your credit score of 653 is considered "fair" and falls within the range of 580-669. This score means you can still access loans and credit, but you face higher interest rates and fewer options than those with better scores.

    Several factors could be impacting your credit score. These include:

    • Late payments
    • High credit utilization (the amount of credit you use compared to your total available credit)
    • Too many inquiries for new credit

    If you’ve missed payments or have debts in collections, these can significantly lower your score.

    To improve your score, focus on these steps:

    • Pay your bills on time.
    • Reduce your credit card balances to lower your utilization rate.
    • Keep older accounts open to lengthen your credit history.

    Monitoring your credit report regularly can help you spot errors that might drag your score down. You can also explore credit-building options, like secured credit cards, to help boost your score over time.

    Bottom line – understanding the factors affecting your score can empower you to take action and achieve a healthier credit score.

    5 Best Ways To Boost A 653 Credit Score?

    To boost a 653 credit score, here are five effective strategies you can implement:

    • Make On-Time Payments: Always pay your bills on time. This factor affects 35% of your credit score. Set up autopay to avoid missed payments.

    • Reduce Credit Card Balances: Keep your credit utilization low. Aim to pay down existing balances and consider multiple payments throughout the month. Paying off your entire balance quickly leads to noticeable improvements.

    • Increase Your Credit Limit: Request a credit limit increase on existing cards or apply for new ones. A higher limit lowers your credit utilization ratio. Just ensure you don’t accumulate more debt when doing this.

    • Avoid New Debt: Steer clear of unnecessary new debt. Focus on managing and paying down your current obligations. Remember, each new credit inquiry can temporarily lower your score.

    • Use Tools Like Experian Boost: Leverage tools like Experian Boost to include on-time utility and rent payments in your credit history, enhancing your score quickly.

    In a nutshell, prioritize on-time payments, reduce credit card balances, increase your credit limit responsibly, avoid new debt, and utilize helpful tools to effectively boost your 653 credit score. You’ve got this!

    Major Factors That Keep My Fair Credit Score Low?

    Major factors that keep your fair credit score low include several key elements. First, your payment history is crucial, making up about 35% of your credit score. If you miss or make late payments, your score suffers. To improve your score, pay your bills on time every month.

    Next, credit utilization is another significant factor, accounting for around 30% of your score. This ratio compares your credit card balances to your credit limits. If you frequently use over 30% of your credit limit, your score can drop. Keeping your credit utilization below this threshold helps improve your score.

    The length of your credit history also matters. A shorter history can indicate higher risk to lenders, negatively impacting your score. Maintain older accounts instead of closing them to show a longer positive credit history.

    Lastly, a mix of credit types can influence your score. Having a balance of credit cards, loans, and other accounts demonstrates your ability to manage different types of debt responsibly. Avoid opening several new accounts simultaneously, as this can indicate higher risk and hurt your score.

    All in all, pay your bills on time, manage your credit utilization, maintain older accounts, and diversify your credit mix to work towards improving your fair credit score.

    How Long To Improve My 653 Credit Score 100-150 Points?

    To improve your 653 credit score by 100-150 points, you typically need several months to over a year, depending on your actions and credit history. You can achieve noticeable progress by focusing on these strategies:

    • Pay Your Bills on Time: Always pay your bills on time. This step is crucial since payment history makes up 35% of your FICO® Score.

    • Reduce Credit Card Balances: Aim to lower your credit card utilization below 30% of your limit. If you’re currently at 50%, targeting 20% can boost your score quickly.

    • Avoid New Debts: Do not open new credit lines until your score improves. Each new inquiry can lower your score temporarily.

    • Review Your Credit Report: Check for errors or negative marks. Dispute any inaccuracies, as correcting these can enhance your score.

    • Consider Credit Boost Tools: Use tools like Experian Boost to add utility payments to your credit file, potentially giving your score a quick lift.

    Improving your credit score is a gradual process. You typically see changes within 30 to 45 days after reducing debt or making payments, as your credit utilization ratio updates. Individual results may vary based on your starting point and habits. Stick with these strategies, and your patience will pay off.

    The gist of it is that you can improve your score by paying bills promptly, reducing credit card balances, avoiding new debts, reviewing your credit report for errors, and utilizing credit boost tools. Stay committed, and you'll likely see positive results.

    Inaccuracies hurting your Credit Score?
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    Can I Realistically Get A Mortgage With A 653 Credit Score?

    Yes, you can realistically get a mortgage with a 653 credit score. Your score falls into the "fair" category, which means you might not qualify for the best mortgage terms, but you are still eligible.

    Lenders evaluate factors beyond just your credit score. They also consider your income, employment history, and overall debt levels. Although you may be seen as a higher-risk borrower, many lenders provide mortgage options for individuals with fair credit.

    For FHA loans, your credit score of 653 qualifies since the minimum is 580. However, be prepared for higher interest rates and possibly a larger down payment compared to those with better scores.

    It's crucial to shop around. Different lenders have varying policies and may view your application differently. If one lender denies you, another may still approve your mortgage. Provide strong financial documentation to support your application.

    If you're considering various types of mortgages, be aware of each requirement. For example, VA loans have no strict minimum credit scores, while conventional loans usually require at least a score of 620.

    Remember, you have options. Focus on providing solid documentation and shop around for the best lender that fits your needs.

    Can I Get A Personal Loan With A 653 Credit Score?

    Yes, you can get a personal loan with a 653 credit score. Although this score falls within the "fair" range, many lenders approve loans for individuals in this category. Here are a few key points to keep in mind when you apply:

    • Higher Interest Rates: Expect to pay higher interest rates than borrowers with better credit scores. Lenders see you as a higher-risk borrower.

    • Income and Debt Considerations: Lenders will evaluate your income and existing debts along with your credit score. This helps them determine your ability to repay the loan.

    • Loan Amount: Apply only for an amount that fits your budget. This shows responsibility and can increase your chances of approval.

    • Existing Relationships: Approach banks or lenders where you have an established history. They may view your long-term relationship positively.

    • Alternative Lenders: Explore alternative lending options that cater to borrowers with fair credit scores and offer more flexible terms.

    At the end of the day, you can secure a personal loan with a 653 credit score by understanding these key factors and taking responsible steps in your application process.

    Can I Buy Or Lease A Car With A 653 Credit Score?

    Yes, you can buy or lease a car with a 653 credit score. This score falls into the "fair" credit range, making it possible to secure a lease or purchase, but you may face certain challenges.

    Here are some key points to consider:

    • With a 653 credit score, you are a higher-risk borrower. Lenders may ask for stronger qualifications, such as proof of income and stable employment.

    • Anticipate higher interest rates and larger down payments compared to those with better credit scores. This can result in increased monthly payments.

    • Different dealerships have various requirements. Some specialize in working with customers who have lower credit scores. It's wise to shop around for the best deal.

    • If you improve your credit score, you can secure better terms. Consider strategies like paying down existing debts or addressing any issues on your credit report.

    • Be ready for additional scrutiny. Lenders will likely evaluate your overall financial situation, including your debt-to-income ratio and credit history.

    Lastly, remember that while a 653 credit score presents some challenges, taking proactive steps can help you secure a car loan or lease more affordably and with better terms.

    Credit Card (Secured Or Unsecured) Options With A 653 Credit Score?

    With a 653 credit score, you can find both secured and unsecured credit card options, though they may be limited.

    For secured cards, you make a deposit that serves as collateral. This is a reliable way to rebuild your credit. Consider the Capital One Platinum Secured card, which requires a low minimum deposit. It helps you build credit while allowing you to manage your spending.

    Your choices for unsecured credit cards are more restricted, but options still exist. You might explore starter cards or store credit cards, which tend to have higher approval rates. The Petal® 1 "No Annual Fee" Visa® Credit Card is a good unsecured option, featuring no annual fee and assessing applicants using alternative data, making it accessible for those with fair credit scores.

    Be careful when applying for any card. Many cards designed for a 653 credit score may carry higher interest rates and fees. Always research each option thoroughly to avoid unfavorable terms.

    You can improve your credit score by responsibly managing a new card. Pay your balance in full and on time to establish a positive credit history. Finally, remember that managing your credit wisely now can lead to better opportunities in the future.

    Inaccuracies hurting your Credit Score?
    Securely review your full 3-bureau Credit Report (with a real expert).

    By clicking ‘Get Started’ I agree by electronic signature to: (1) be contacted by The Credit Pros by a live agent, artificial or prerecorded voice, and SMS text at my residential or cellular number, dialed manually or by autodialer even if my phone number is on a do-not-call registry (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

    Should I Become An Authorized User With A Fair Credit Score?

    Becoming an authorized user with a fair credit score of 653 can improve your creditworthiness. If someone with a strong credit history adds you as an authorized user, their positive credit habits can slowly boost your score. This strategy is especially effective for those starting with lower scores.

    However, you must trust the person you choose as a primary account holder. If they miss payments or manage their credit poorly, your score may drop. Look for someone who consistently pays bills on time and maintains low credit utilization.

    While being an authorized user can help, it might not be sufficient for you to secure credit independently. Lenders often seek your individual payment history and debt responsibility. Ensure that the credit card issuing bank reports authorized user accounts to the credit bureaus.

    Big picture-you can enhance your credit score from 653 by becoming an authorized user, but only if you are added to an account with a responsible primary cardholder.

    Which Negative Marks On My Credit Report Affect My 653 Credit Score?

    Negative marks on your credit report that affect your 653 credit score include late payments, collections, bankruptcies, and high credit utilization. Here's how each impacts your score:

    • Late Payments: If you miss a payment for over 30 days, it gets reported and can stay on your record for 7½ years. This significantly lowers your score.

    • Collections: When an account goes to a collection agency, it adds a derogatory mark that lasts for 7 years.

    • Bankruptcies: Filing for bankruptcy has severe consequences. It stays on your report for 7 years (Chapter 13) or 10 years (Chapter 7), dramatically affecting your creditworthiness.

    • High Credit Utilization: Using more than 30% of your available credit indicates overextension and can lower your score, reflecting poor debt management.

    Additionally, foreclosures and judgments can similarly affect your credit report. You should regularly check your credit reports for free to monitor these marks. If you find errors, dispute them to improve your score. By taking control of your payment habits and reducing your debt-to-credit ratio, you can boost your credit score.

    Overall, focusing on timely payments, managing credit utilization, and addressing any inaccuracies will help improve your credit standing.

    Should I Negotiate And Pay Off Debts To Improve My Fair Credit Score?

    Negotiating and paying off debts can improve your fair credit score, but the results depend on your approach. When you negotiate, you may agree to pay less than what you owe, resulting in an account marked as "settled." This can negatively impact your score. However, reducing your overall debt positively affects your credit utilization ratio.

    You should prioritize paying off debts to avoid missed payments, which heavily affect your score. Staying current with payments is vital, so if settling debts helps you achieve this, it might be worthwhile. Full payments typically reflect more favorably on your credit report than settlements.

    If you feel overwhelmed by the negotiation process, consider working with a nonprofit credit counseling agency. They can guide you through the options and help you find the best solution. Maintaining open communication with your creditors can also yield better outcomes.

    As a final point, be ready for a brief dip in your credit score if you negotiate. Remember, reducing debt typically helps in the long run. Focus on your unique financial situation and choose options that work best for you.

    Best Site To Monitor My Credit Report?

    The best site to monitor your credit report is WalletHub. You receive your complete credit report with daily updates, giving you a detailed view of your credit status. This frequent monitoring is crucial to track changes that could impact your credit score.

    You can also explore Credit Karma, which provides two free credit reports with regular updates. Their service includes helpful educational tools and monitoring features that alert you to important changes.

    Another excellent option is AnnualCreditReport.com. This is the only federally authorized website for accessing your free annual reports from Equifax, Experian, and TransUnion. You can request your credit report from each bureau once a year here.

    Each of these services offers unique features to suit your needs, whether you prefer detailed daily updates or annual assessments. Regularly monitoring your credit helps you maintain or improve your credit score, especially if you have a fair score like 653.

    To put it simply, use WalletHub for daily updates, Credit Karma for two free reports, and AnnualCreditReport.com for your annual checks. Staying informed empowers you to make better financial decisions.

    Inaccuracies hurting your Credit Score?
    Securely review your full 3-bureau Credit Report (with a real expert).

    By clicking ‘Get Started’ I agree by electronic signature to: (1) be contacted by The Credit Pros by a live agent, artificial or prerecorded voice, and SMS text at my residential or cellular number, dialed manually or by autodialer even if my phone number is on a do-not-call registry (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

    Should I Consider A Credit Builder Loan W/ Fair Credit?

    Yes, you should consider a credit-builder loan with fair credit. This loan helps individuals like you build their credit profiles, even with lower scores.

    Here are the main reasons to consider one:

    • No Good Credit Required: You don’t need a high score to qualify. Lenders often assess your income and employment history instead.

    • Build Payment History: Credit-builder loans allow you to establish a positive payment history, which makes up 35% of your credit score. Consistently making on-time payments can improve your score over time.

    • Small Loan Amounts: These loans usually range from $300 to $1,000 and have terms of 6 to 24 months, making them manageable for your budget.

    • Low Interest Rates: You can find competitively low APRs, often between 6% and 16%.

    • Potential to Improve Financial Habits: Regular payments can help you develop better budgeting and financial management skills.

    However, be cautious. If you miss payments, your score can drop. Ensure you can afford the monthly payments before proceeding. You may also want to compare this option with secured credit cards, another viable way to build your credit.

    In short, considering a credit-builder loan can be a smart move to boost your credit score, but ensure you can manage the payments responsibly.

    Is A 653 Credit Score Different Between Fico And Vantage?

    Yes, a 653 credit score can differ between FICO and VantageScore. Both models use a range of 300 to 850, but they apply different criteria and scoring methods. For example, FICO focuses on payment history, amounts owed, and credit utilization. In contrast, VantageScore considers trends and behaviors over time. Consequently, lenders may view your 653 score differently depending on the model they use to assess your creditworthiness.

    Lenders often favor FICO scores. When you apply for credit, they typically refer to your FICO score. Understanding how each model works can help you gauge your credit position better. Different scoring outcomes from FICO and VantageScore can influence your loan approval odds and interest rates.

    To finish, it’s essential for you to recognize the differences between the two models, as this knowledge can empower you to make informed financial decisions while considering ways to improve your credit score.

    Does A 653 Credit Score Affect My Chances Of Renting An Apartment?

    Yes, a 653 credit score can affect your chances of renting an apartment. This score is considered "fair" and may raise concerns for landlords. Generally, a score of 650 or above is often acceptable for most rentals. However, since your score is 653, be aware that some landlords might request additional verification of your financial stability.

    • Landlords often look at your overall credit history, not just your score. If you have a strong record of on-time payments, it can significantly improve your chances.

    • If your score is on the lower end of the acceptable range, expect landlords to ask for a higher security deposit or extra documentation to support your application.

    • You should check your credit report before applying to see what landlords will see. You can do this for free at AnnualCreditReport.com.

    In essence, while a 653 credit score may present some challenges in renting an apartment, you can strengthen your application by highlighting your rental history and preparing necessary documentation.

    Can A Credit Repair Company Actually Boost My 'Fair' Score

    Yes, a credit repair company can boost your fair credit score, but you should consider several factors. Reputable credit repair services help you identify and dispute inaccuracies on your credit reports, which may lead to an improved score. They cannot change accurate information since they can only address errors or unverified details.

    Here’s what you should keep in mind:

    • Legitimacy: Research the company's history. Look for reviews and ratings. Stay cautious of scams that promise unrealistic results.

    • Services Offered: These companies typically review your credit reports, dispute incorrect information, and provide credit education. They cannot guarantee a specific score increase.

    • Costs: Credit repair services usually range from $50 to $150 monthly, with additional fees for each deleted item. Assess whether the costs align with potential benefits.

    • DIY Options: You can dispute errors on your own for free. Many individuals successfully improve their scores without hiring a company.

    To wrap up, while a credit repair company can help improve your fair credit score under the right conditions, weigh the costs and benefits carefully, and consider handling disputes yourself if possible.

    Inaccuracies hurting your Credit Score?
    Securely review your full 3-bureau Credit Report (with a real expert).

    By clicking ‘Get Started’ I agree by electronic signature to: (1) be contacted by The Credit Pros by a live agent, artificial or prerecorded voice, and SMS text at my residential or cellular number, dialed manually or by autodialer even if my phone number is on a do-not-call registry (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

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