Is a 650 Credit Score Decent? What It Means for You

A credit score is a numerical summary of an individual’s creditworthiness, indicating their likelihood of repaying borrowed money. This three-digit number influences access to loans, credit cards, housing, and many other financial aspects of life. Understanding how this score is calculated and interpreted is important for managing personal finances effectively.

Interpreting Credit Score Ranges

Credit scores are primarily generated by two major models: FICO and VantageScore, both typically ranging from 300 to 850 points. FICO scores, widely used by most lenders, categorize scores into distinct ranges:
Poor: 300-579
Fair: 580-669
Good: 670-739
Very Good: 740-799
Exceptional: 800-850
VantageScore also uses a 300 to 850 range, though its categorizations differ slightly, with 601-660 being “Fair” and 661-780 categorized as “Good.”

A 650 credit score falls within the “Fair” category for both FICO and VantageScore models. This places it below the average U.S. FICO score, which was 715 in 2023. While obtaining credit may be possible with a 650 score, lenders often perceive a higher risk, leading to less favorable terms compared to individuals with scores in the “Good” or “Excellent” ranges.

Financial Access with a 650 Score

Securing various financial products with a 650 credit score is often achievable, though it typically comes with less advantageous terms than for those with higher scores.

Mortgages

A 650 FICO score often meets minimum lending requirements for mortgages, especially for government-backed options like Federal Housing Administration (FHA) loans, which accept scores as low as 580 with a 3.5% down payment. Conventional loans may also be available, but often involve higher interest rates or a larger down payment. For example, FICO’s data indicates that a 640-659 FICO score range could result in an average interest rate of approximately 7.711% on a 30-year fixed mortgage, significantly higher than the 7.449% for scores in the 700-759 range.

Auto Loans

Auto loans are accessible with a 650 credit score, often falling into the “Nonprime” category. While approval is likely, borrowers in this range can expect higher interest rates. For instance, in the first quarter of 2025, the average interest rate for a new car loan for someone with a 601-660 VantageScore was 9.83%, while for used cars, it was 13.74%. This compares to average rates of 5.18% for new cars and 6.82% for used cars for borrowers with “Superprime” scores (781-850).

Personal Loans

Personal loans are available with a 650 credit score, though lenders often view this as “Fair,” leading to higher interest rates and potential origination fees. The average personal loan rate for customers with a 700 FICO score was 12.49% as of August 2025, suggesting that a 650 score would likely incur a higher rate. Lenders may also consider other factors, such as income stability and debt-to-income ratio, when evaluating applications.

Credit Cards

A 650 score may qualify for certain credit card options, including secured cards or those designed for building credit. These cards often come with lower credit limits, higher annual percentage rates (APRs), or require an initial security deposit. While some general-purpose cards may be available, top rewards programs or 0% introductory APR offers are typically reserved for higher scores.

Rental Applications

For rental applications, a 650 credit score is generally acceptable to many landlords. This score often meets minimum requirements, indicating satisfactory financial responsibility. However, some landlords may request additional assurances, such as a higher security deposit or a co-signer, to mitigate perceived risk. Providing documentation like recent pay stubs or a positive rental history can also strengthen an application.

Utility Companies

Utility companies often check credit scores to determine if a deposit is required. While some may not require a deposit with a 650 score, others might, especially with a history of delinquent accounts. Utility deposits typically range from $100 to $250, or up to two months of service, depending on the provider and state regulations. In some cases, a letter of guarantee from another person may be accepted in lieu of a deposit.

Steps to Enhance Your Score

Improving a 650 credit score involves focusing on the key factors that influence its calculation.

Consistently making all payments on time is the most impactful action, as payment history accounts for a significant portion of both FICO and VantageScore models. Even a single missed payment can negatively affect a score.

Managing credit utilization—the amount of revolving credit used compared to the total available—is another important factor. Keeping credit card balances low, ideally below 30% of the available credit limit, can positively influence a score. Paying down existing debt, especially on credit cards, can quickly lower utilization and contribute to score improvement.

The length of credit history plays a role, with older accounts generally more favorable. Maintaining existing accounts in good standing and avoiding unnecessary closures can help preserve a longer credit history. Diversifying credit types, such as a mix of revolving credit (credit cards) and installment loans (auto loans or mortgages), demonstrates responsible management. Avoid opening too many new credit accounts in a short period, as this can temporarily lower a score.

Regularly check credit reports from all three major bureaus—Experian, Equifax, and TransUnion. These reports are available annually for free, allowing review for inaccuracies or fraudulent activity. Disputing errors promptly can help ensure the score accurately reflects financial behavior. Consistent actions over time lead to gradual but meaningful improvements.