At a Glance
As of April 2021, 12.5% of Americans have credit scores in the “Fair” range. A credit score of 649 is regarded as fair credit and is below the US average. As it determines whether you qualify for credit cards or loans and what the interest rate will be even if you do, your credit score is more important.
Although a 649 credit score is not poor, it is also not good either. As a result, some lenders might reject credit applications from borrowers with 649 credit scores as having bad credit, while others might approve your loan but are likely to charge high-interest rates and fees. Over 27% of consumers with credit scores under the fair range are predicted to become significantly delinquent in the future.
Is 649 Credit Score Good or Bad?
In a word, no. A credit score of 649 is neither excellent nor extraordinary but neither decent nor awful. A credit score of 649 is considered average by well-known credit scoring algorithms.
Looking over your credit report, you can discover the reasons behind your bad credit score. If you stop the behaviours that contributed to the fall in your credit score, you may start laying the groundwork for a better score.
What Impacts your 649 Credit Score?
Your debt-management history, which is reflected in your credit file, is typically used to calculate your credit score. The score is a reflection of your credit and bill-paying behaviour. Your credit score will rise if you have good credit habits, while fall if they are bad or irregular. Your 649 credit score is affected by several variables, including:
- Public information
- Credit Utilization Ratio
- Late or missed payments
- Length of credit history
- Total debt and credit mix
- Recent credit activity on your account
If your credit report reflects bankruptcies or other similar public records, your credit score can take a massive hit. A Chapter 7 bankruptcy will remain in your credit file for up to 10 years, and a Chapter 13 will stay for seven years. Even though your credit score may increase before the bankruptcy report disappears from your record, there is a high possibility that lenders might refuse to work with you because of bankruptcy billing.
Credit Utilization Ratio:
To determine your Credit Utilization Ratio, add up the balances on your revolving credit accounts and divide them by the total credit limit. For example, if your credit card has a limit of $10,000 and you owe $1,500, your credit utilization rate is 15%. It is recommended that you keep your Credit Utilization Ratio within 30% to avoid lowering your credit scores. Credit usage is responsible for about 30% of your credit score.
Late or Missed payments:
Your credit score will significantly hit if you miss your credit card payment. So if you see that your credit score has fallen to 649, you should look into how many late or missed payments have happened from your end. Paying your bills consistently is the most critical thing to do to improve your 649 credit score, as it accounts for 35% of your FICO score.
Length of Credit History:
Along with other things, the length of your credit history is also a detriment to your credit score. The number of years you have been a credit user can influence up to 15% of your FICO score. NTC (New to Credit) users must be patient and careful to avoid destructive credit behaviours.
Total Debt and Credit mix:
If you have multiple credit accounts, revolving and installment credit, then the FICO credit score will usually work in your favour. On the other hand, if you have only one kind of credit account and your credit score is 649, it might help if you broaden your credit portfolio. The total debt and credit mix make up 10% of your total FICO score.
Recent Credit activity:
If you are someone who keeps applying for new loans and credit cards, your credit score might take a hit. Some companies trigger a check known as a hard inquiry when you apply for loans or credit cards. What happens during the hard inquiry is that the lender obtains your credit score to determine if you can get the credit line or not. Hard inquiries might drop your credit score by a few points, but it rebounds within a few months if you keep up with your credit card bills. New credit activity can account for up to 10% of your FICO scores.
What does a Credit Score of 649 mean for your Life and Finances?
Even though a credit score of 649 isn't always bad, there is room for improvement. Your life and finances will be impacted in several ways by having a credit score of 649.
A 649 credit score can influence your life and finances in the following ways:
- Personal loans with a high APR
- High-interest rates or refusal to approve unsecured loans
- Obtaining cell phone connectivity
- Having trouble finding apartments
- Credit cards with high-interest rates
Can you get a Credit Card with a 649 Credit Score?
Yes, you can apply for the Azpire Credit Builder Card to improve your credit score of 649. There is a significant danger that the lender will charge you a hefty interest rate and that other banks will reject your application if your credit score is 649. But with Azpire, you can obtain a secured credit card, without high interest rates, even if you qualify for NTC (New to Credit). One of the best ways to improve your 649 credit score is to apply for this secured credit card.
How to Improve your 649 Credit Score?
With good credit practices and dedication, your low credit score will gradually rise from 649 to a good (670-739) rating. Some of the ways that might help you increase your 649 credit score are:
- Paying your bills on time
- Avoiding high credit utilization
- Debt management plan
- Credit builder loan
- Use a secured credit card
- Establish a credit mix
Paying your bills on time:
The holy grail of improving your credit score is to pay your bills on time. If your credit score is 649 and you are looking for ways to increase your credit score, this is the way to go.
Avoid high credit utilization rate:
Regardless of how many accounts you have, strive to maintain your credit utilization below 30% to prevent your credit score from declining.
Debt management plan:
If you're in trouble with your credit card bills, a debt management plan can come in handy. You need to work with a non-profit credit-counselling agency to work out a manageable repayment schedule. If this sounds too extreme, you can consult a credit counsellor to improve your 649 credit score.
Credit builder loan:
These small loans are provided by some credit unions and are intended to help NTC users establish credit. If you continue to make the required payments, these loans aid in the development of your credit.
Apply for a secured credit card:
This usually comes with a small credit limit, often only a few hundred thousand dollars, and you have to put down a deposit in the total amount of that limit. As you use this card and make regular, timely payments, the lender reports those activities to the national credit bureaus. Your credit behaviour is recorded in your credit files and reflected in your FICO score.
Look no further if you want to improve your 649 credit score by applying for a secured credit card.
Folks, meet the
Zolve Azpire Card
What is it?The Zolve Azpire card helps you build credit using your own money. It is a credit builder card that helps you start building your credit score from the first transaction. It is available to all, even if your credit score is 649.
We record every swipe of your Zolve Azpire card, and by the month’s end, we add up all the transactions for the month and report it to the bureaus so that your credit score gets built for a better financial future.
Establish a credit mix:
The FICO scoring algorithm favours users with many credit accounts and a range of loans, including installment loans like mortgages, auto loans, and home equity loans.
If your credit score is 649, you can have trouble getting loans or credit cards. As a result, you should be aware of this and take steps to improve your 649 credit score. You may have easier access to loans, waived fees, favorable terms, and lower interest rates if you raise your credit score from 649 to good (670-739).