646 Credit Score
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(888) 803-7889One could regard a credit score of 646 as fair. It ranks less than the United States' average credit score of 695. Although having a credit score of 646 is not bad, when it comes to loans and credit cards it becomes more difficult to get authorized for them and, should you be granted, you will probably be charged higher interest rates.
For those who received a 646, the reality is that there are steps one may do to raise a 646 score. Every month, make all your payments on time; cut your balances; avoid applying for fresh credit. Reviewing your credit reports often and contesting any disparities will also help to raise your scores. It is really simple to bring a 646 credit score to 700 and above by adopting solid credit practices over years.
A 646 credit score falls into the “Fair” range on most credit scoring models. It is generally considered below average, meaning you might face higher interest rates compared to those with higher scores.
Mortgage: You may qualify for a mortgage, but with less favorable terms and higher interest rates.
Auto Loans: Likely to get approved, though expect higher rates and less favorable loan terms.
Credit Cards: Some credit cards will be available, but they may come with higher fees or lower credit limits.
A 646 score typically results in higher interest rates on loans and credit cards compared to those with scores in the “Good” or “Excellent” ranges.
You might face higher premiums for auto and homeowners insurance, as insurers often use credit scores to determine rates.
Renting may be more challenging, as landlords often use credit scores to gauge financial responsibility. You might need a co-signer or pay a higher security deposit.
Regularly review your credit report to ensure accuracy and to identify any issues that might be affecting your score.
Focus on improving your credit score by paying bills on time, reducing credit card balances, and managing debt responsibly.
With consistent positive financial behavior, a 646 credit score can improve over time. Establishing good credit habits is key to boosting your score into the “Good” or “Excellent” range.
Keep your credit utilization ratio (credit card balances relative to credit limits) below 30% to positively impact your score.
Lenders often look at your debt-to-income ratio in addition to your credit score. Lowering your debt relative to your income can improve your financial profile.
A credit score of 646 is considered fair. While it's not ideal, it's still possible to secure loans and credit cards, although you may face higher interest rates and limited options. Typically, a 646 credit score indicates a limited credit history, some missed payments, or a high credit utilization ratio. Building a longer credit history, making consistent on-time payments, reducing credit card debt, and avoiding unnecessary new credit inquiries can help improve your score over time.