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Is A Transunion Credit Score Of 650 Good? (Solved)

If you review your credit reports and find any inaccurate entries, you can and should address them immediately by filing a credit report dispute. Depending on the nature of the issue, you may need to provide the credit bureau with backup documents, such as a receipt or statement documenting a payment mislabeled as late. Disputes can take a few weeks to process, and lenders are often reluctant to consider loan applications while disputes are pending. If your credit reports require correction, it’s wise to avoid submitting a mortgage application (or seeking any other kind of credit) until your dispute is resolved 😎 [1]
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. 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. (last modified 54 days ago by Leighton Wagoner from Luohe, China) [2]
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Experian.com goes on to describe that 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. 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. (modified by Lisa Clark from Larkana, Pakistan on October 30, 2021) [3]
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The pros at experian.com give further information. For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2020, the average FICO® Score☉ in the U.S. Reached 710—an increase of seven points from the previous year. Higher scores can make creditors more confident that you will repay your future debts as agreed. But creditors may also set their own definitions for what they consider to be good or bad credit scores when evaluating consumers for loans and credit cards. (emended by Melania McGowan on October 16, 2021) [4]
Keep in mind that there are other free options instead of Credit Karma or in addition to it. Your credit card issuer or bank may offer an update online. And, you have a legal right to a full copy of your credit report once a year, available at AnnualCreditReport.com. Credit Karma can also help you research loan products. If you’re in the market for a loan, a service that provides you with a recent credit score and current credit offers in one place can prove valuable. Don’t forget that these offers are Credit Karma’s bread and butter. Its advertisers are eager to lend you money, and that may not be the best thing for your credit score. (emended by Martellis Clark on October 12, 2020) [5]

Article References

  1. https://www.experian.com/blogs/ask-experian/what-kind-of-home-loan-can-i-get-with-a-650-credit-score/
  2. https://www.experian.com/blogs/ask-experian/credit-education/score-basics/650-credit-score/
  3. https://www.experian.com/blogs/ask-experian/credit-education/score-basics/600-credit-score/
  4. https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/
  5. https://www.investopedia.com/articles/personal-finance/103015/are-credit-karma-scores-real-and-accurate.asp
Mae Chow

Written by Mae Chow

Passionate about writing and studying Chinese, I blog about anything from fashion to food. And of course, study chinese! I'm a passionate blogger and life enthusiast who loves to share my thoughts, views and opinions with the world. I share things that are close to my heart as well as topics from all over the world.

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