653 Credit Score: Good or Bad?

Last Updated: Mar 15, 2023

  • A 653 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 653 a good credit score?

As mentioned above, a 653 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 (653-669).

With a 653 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 653 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 653 credit score?

As mentioned previously, a 653 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 653 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 Credit Scores

Credit scores are a cornerstone of personal finance, as they provide lenders with insights into an individual's creditworthiness. The most widely-used type of credit score is the FICO® Score, which ranges from 300 to 850. Generally, a higher FICO® Score denotes better creditworthiness and leads to more favorable loan terms for the borrower. A score of 653 falls within the “Fair” range, meaning that those with this score may experience limited lending options and higher interest rates and fees.

It's important for individuals to be aware of how their credit scores are calculated and what factors can influence them. By understanding what goes into one's credit score, people can work towards improving it over time and access more competitive lending terms in the future. Regular monitoring of your credit score is key to achieving this goal.

Tips for Building Credit

Building a strong credit score is an important part of financial stability. To help you in this endeavor, here are some tips to get you started:

  • Pay your bills on time

Late payments can severely hurt your credit score and should be avoided at all costs.

  • Keep your credit utilization low

Your credit utilization ratio measures how much of your available credit you are using relative to your total limit. Aim to keep this ratio as low as possible, usually below 30%.

  • Monitor your credit report

Make sure to regularly check your credit report for any inaccuracies or potential fraudulent activity.

  • Open a secured credit card

If you have no current credit history, or if you have a low score, opening a secured card can help jumpstart the process of building up your score. With a secured card, the amount of money you’ve deposited serves as the basis for your available line of credit.

  • Become an authorized user

If someone – such as a parent or close friend – has established good credit, they may be open to adding you as an authorized user on their account. This allows you to benefit from their positive payment history without taking on any debt yourself.

By following these tips, you can begin the process of establishing and strengthening your credit profile. Remember that building good credit takes time and effort to achieve long term success – so stay patient and stay committed!

Need help improving your credit score?

Can I get a mortgage/home loan with a 653 credit score?

It will be difficult to secure a mortgage with a 653 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 653 credit score?

You shouldn’t have any problems getting an auto loan with a 653 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 653 credit score?

Yes you should be able to get a personal loan with a 653 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 653 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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