Is 656 a Good Credit Score ?
Is It Good Or Bad To Have A 656 Credit Score?
It is an important figure that is assigned to every person who has a credit history and a credit rating. It can decide if you are offered credit cards, loans, mortgages, and even the jobs and the houses you apply for. Thus, let us see where a 656 credit score could rank or whether or not it is a good or bad score.
The Credit Score Matters: What a 656 Credit Score Means
But to be more specific, a 656 credit score is generally rated as a fair or average credit score by most experts. The FICO credit score has a range from 300 to 850. Hence, a credit score of 656 is just outside the category of good credit scores and which places you in the lower middle …
Here is how a 656 breaks down among the different credit score ranges:
- Hence, 300-579 can be interpreted as bad or poor.
- 580-669 indicates that the staff is paid fairly or it is an average wage.
- 670-739 is good
- Very good is the description of the result if we assigned numerical values as follows:
- 800-850 is outstanding or superb
Of course, the score of 656 means that the result is still classified as fair/average but it is closer to the zone of good scores.
A 656 Credit Score Is Not the Worst Credit Score You Can Possibly Have
A credit score like 656 is not bad but not very good either, it is still reasonable if not perfect. You should be able to get it to the good range with some work within a few weeks at most. Some key things to know about a 656 credit score:
Pros
- You should be able to obtain credit cards and loans if necessary but should not expect the best interest rate and the most credit limits.
- Demands some positive credit experience from the lender and proves that you can manage credit services.
- Far above bad credit rating that is considered to be unsuitable for any form of financing.
Cons
- Credit costs can be higher than they would be to borrowers whose credit score is 670 or above
- May have to pay more money upfront than to rent the items for a longer period.
- Even getting qualified for the premium rewards credit cards is challenging
The higher you can go with your 656 score, the more advantages you will accrue when it comes to credit, loans, and their favorable rates in the long run.
Why has My Credit Score of 656?
Some different factors influence a credit score, but a drop into the mid-600s often relates to these issues:
1. High Credit Utilization
This refers to the extent to which you utilize the credit limit available to you by your credit card companies. Ideally, the ideal total debt-to-equity ratio should be below 30%.
2. Late Payments
Default will scare your score away almost immediately. If you are not good with dates then you should set up auto pay.
3. Short Credit History
Lack of credit accounts opened for an adequate timeframe keeps score below 700 initially. Give it time.
4. Hard Credit Inquiries
These are hurt when an application is made for new credit and when many such credits are applied for at once, scores are reduced for a while. Slow down applications.
5. Inaccurate Information
Frequently late payments or high balances can be damaging to credit score even if it is incorrect. Dispute errors.
How to Improve My Poor Credit Rating of 656?
It is therefore important for one to understand that there are practical steps that can be taken to begin the process of enhancing a 656 credit score. Here are five proven ways to raise your score:
1. This means I have to pay all the bills on time because being current is more beneficial than anything else.
2. Least credit utilization - this is even better as it helps you pay down balances and get a better score.
3. Reports & reconciliation – review and correct any errors specifically related to late payments or balances.
4. Reduce difficult investigations – avoid applying for new credit at the moment.
5. Report – keep using your oldest credit accounts while ensuring that you make responsible payments and let them grow your credit history.
If you train yourself to identify and attend to those items, in particular, each month, you should easily push 656 above 700 within the confines of a year. Take time, manage credit well, and ensure that the changes bring about positive results reflected in the scores.