What Can I Get With a 650 Credit Score?

A credit score represents an individual’s creditworthiness, reflecting their financial history. Scores typically range from 300 to 850, with higher scores indicating lower risk to lenders. A 650 credit score generally falls into the “fair” category for both FICO and VantageScore models. This score signifies moderate credit reliability but may suggest past challenges like missed payments or higher debt. While a 650 score allows access to various financial products, terms may differ from those available to individuals with higher scores.

Understanding a 650 Credit Score for Lending

Lenders perceive a 650 credit score as fair, meaning borrowers can often qualify for credit, but terms might be less favorable. This can include higher interest rates, lower credit limits, or requirements for a down payment or collateral.

Credit scores are one of several factors lenders consider when assessing risk, alongside income, debt-to-income ratio, and employment history. A 650 score suggests some risk, leading lenders to offer terms that help mitigate it. While a 650 credit score is below the national average FICO score of 714, it is not far from the “good” credit range, which typically begins around 670.

Credit Card Options

Individuals with a 650 credit score can access various credit card options, though competitive offers are reserved for higher scores. Unsecured credit cards for fair credit are available, often with moderate credit limits and higher Annual Percentage Rates (APRs).

Secured credit cards are another viable option, requiring a cash deposit that typically serves as the credit limit. These cards function like traditional credit cards and are effective for building or rebuilding credit history. Retail store cards are also accessible, often having less stringent approval criteria than traditional credit cards. They can help build credit if managed responsibly, though they often come with higher interest rates and lower credit limits.

Auto Loan Accessibility

Obtaining an auto loan with a 650 credit score is feasible, though borrowers can expect higher interest rates. For example, a 650 credit score might lead to an average interest rate around 13.74% for a used car, with some rates potentially reaching 25-30% for those at the lower end of the “nonprime” range. Lenders classify scores between 601-660 as “nonprime” for auto loans, where average used car rates were about 13.74% in early 2025.

Making a substantial down payment can significantly improve loan terms, potentially leading to lower interest rates and easier approval. Some lenders may require a minimum down payment of 20% for scores in this range. Auto loans are available through banks, credit unions, and dealership financing, all of whom assess credit scores alongside other financial factors to determine eligibility and terms.

Mortgage Possibilities

Securing a mortgage with a 650 credit score can be challenging for conventional loans, which typically prefer scores of 620 or higher. Government-backed options often provide greater accessibility. Federal Housing Administration (FHA) loans are designed for borrowers with lower credit scores and typically require a minimum credit score of 580 for a 3.5% down payment. A 650 score meets this requirement.

FHA loans include an upfront mortgage insurance premium (MIP) and annual MIP payments, which protect the lender against default. The upfront premium is 1.75% of the loan amount and can be financed. Annual MIP rates average around 0.55% of the loan amount for a 30-year term with a low down payment. Other government-backed options include VA loans, which have no minimum credit score requirement, and USDA loans, typically requiring a score of 640 or higher for properties in eligible rural areas.

Personal Loans and Other Financing

Personal loans are available to individuals with a 650 credit score for purposes like debt consolidation or unexpected expenses. These loans may come with higher interest rates, typically ranging from 13.48% to 19.65%.

A 650 credit score can also influence other financial interactions. Landlords often check credit scores for rental applications, with a stronger score potentially leading to higher approval and lower security deposits. Utility service providers may require a deposit for new service if a credit score is not within their preferred range. Cell phone contracts may involve a credit check; a higher score can lead to better terms or avoid a security deposit. Missed cell phone payments can negatively impact a score if reported to credit bureaus.