With the credit business in a severe crunch, rating credit risk is an important part of daily operations. In today’s credit marketplace, a credit score of 650 is good enough for most people to get credit, though some more difficult lenders may decline. .
A excellent credit score is reserved for someone with a credit score over 700. These individuals will receive the best interest rates on loans and will be able to take out more money on credit than those with lesser scores. People with a credit score of 650 are still considered to be solid credit prospects and will likely receive good rates; once the credit score starts dropping into the low 500s, however, most lenders will consider that a rating credit risk.
An individual with a credit score of 650 may have arrived there through one of two different ways: the first being they have a limited (or no) credit history to be judged on, the other being through a number of errors that have impacted their credit rating. A number of errors, including missing credit card payments or keeping higher balances than normal on credit cards, can knock a credit rating in to the area of a credit score of 650.
If someone has a credit score of 650, they had better know about it and be prepared to take steps to keep it or improve it—especially if faulty information has helped knock down their credit rating. Thanks to federal legislation, consumers can now get all three credit bureau reports by visiting a single Web site. All three major credit reporting agencies, Equifax, TransUnion and Experian, are now required by law to give consumers access to their credit reports for free once a year. By going to annualcreditreport.com, consumers can see what their credit report holds. All three credit bureau reports can be different, so receiving all three is important to make sure your credit has not been adversely affected in a way that was picked up by one credit agency and missed by others. If there is false information, it should be immediately reported to the credit agencies, as this will help a rating credit risk improve.