649 Credit Score: Good or Bad?

Last Updated: Apr 08, 2023

  • A 649 credit score is considered "Fair"
  • Having a “Fair” credit score can cost you 1000s of dollars in extra interest over the lifetime of your loans
  • Call us today to find out how you can repair your credit (fast)!

Is 649 a good credit score?

As mentioned above, a 649 FICO® Score is considered “Fair”. This is typically a result of situations such as:

  • You’ve had payment problems (late payments, missed payments, etc)        
  • Accounts have been charged off & sent to collections        
  • Sometimes even foreclosures & bankruptcies

Approximately 17% of all consumers in America have FICO® Scores in the “Fair” range (649-669).

With a 649 FICO® Score, you’ll mostly be dealing with “subprime” lenders. Which means you’ll be charged relatively high interest rates & fees.

How to improve a 649 credit score

To improve your credit score, you need to focus on fixing the underlying factors.

  • Always make your minimum payments, and ensure they’re paid on time        
  • Keep your credit card balances as low as possible (also known as a low utilization rate)        
  • Build your credit file by making sure the accounts you do open, get reported to the 3 major credit bureaus (Equifax, Experian & Transunion)        
  • Only apply for credit when necessary, this keeps your hard inquiries at a minimum

Not sure where to start? A dedicated credit repair agency, like us, can work with you to ensure you’re maximizing all avenues when it comes to improving your score.

What can you do with a 649 credit score?

As mentioned previously, a 649 credit score is considered “Fair”. So your lending options are going to be somewhat limited. You’ll mostly get lending through subprime lenders.

Subprime lenders will charge higher interest rates & fees, as they’re taking on “higher risk” clients.

What kind of interest rate can you get with a 649 credit score?

It will typically only be subprime lenders that will approve your applications, and this comes with higher interest rates & fees.

These higher interest rates can cost you thousands of dollars in added interest over the lifetime of your loans, in comparison to if you had a “Good” credit score.

We highly recommend you take the necessary steps towards repairing your credit, and securing a better financial future for yourself, before applying for loans.

Understanding Your Credit Score

Your credit score is a three-digit number that plays a vital role in determining your financial opportunities. A score of 649 leaves room for improvement and there are steps you can take to increase it. Start by making timely payments, reducing debt and keeping your credit utilization low. Also, try to avoid opening new accounts too frequently and check your credit report regularly for any errors that need to be disputed. With effort and dedication to these strategies over time, you should start seeing an improvement in your score.

The Benefits of Maintaining a Great Credit Rating

Having a great credit rating can provide you with a wide range of opportunities. You may be approved for loans and credit cards at better interest rates, which can save you money in the long run. You could qualify for rental applications, mortgages or jobs that require a credit check as well. With good credit, you will have more negotiating power when discussing payment terms or interest rates, helping you to get the best deal possible. 

Additionally, maintaining a good credit score gives you a strong financial foundation to help achieve your goals and dreams. Taking the time to focus on improving your credit rating is well worth it in the end.

Need help improving your credit score?

Can I get a mortgage/home loan with a 649 credit score?

It will be difficult to secure a mortgage with a 649 credit score, but it is definitely possible.

It will be expensive (higher interest rates & fees), and can cost you 10s of thousands of dollars in extra interest over the lifetime of your loan.

Instead, we recommend focussing on improving your credit score, to at least 670-739 (which is considered “Good”). Once you’ve increased your score, you’ll be in a much better place to apply for a mortgage & most importantly, you’ll save yourself a ton of money on interest payments.

Can I get a car loan with a 649 credit score?

You shouldn’t have any problems getting an auto loan with a 649 credit score. But do expect to pay more for the loan than what you would with a “Good” credit score (between 670-739).

You will still be considered higher risk by the lender and subsequently be charged higher rates, so you might consider increasing your credit score before getting an auto loan.

Can I get a personal loan with a 649 credit score?

Yes you should be able to get a personal loan with a 649 credit score. It may take a little bit of searching around for the right lender, but it is possible.

Bottom Line

Let’s face it, a 649 credit score is OK, but can be better. Applying for any forms of lending is slightly difficult, and you’ll pay higher interest rates & fees.

The best course of action (by far), is to improve your credit score first before you apply for loans. Not only will it open more doors for you, it will also save you a ton of money in the long run (due to lower interest rates).

Need help improving your credit score?

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