A credit score is a three-digit number lenders use to evaluate your ability to pay back loans. Your credit score is based on information about your credit accounts and how you manage them.
Your credit score is a valuable tool in making good financial decisions. It can help you qualify for the best mortgage, auto and credit card options as well as help you avoid costly fees and interest rates.
Overview of a 656 Credit Score
A credit score is a numerical value that indicates your likelihood of future delinquency. It’s based on information from your credit reports that determines how likely you are to be responsible with your finances.
While a credit score does not guarantee approval for any loan, it can help lenders see you as a more reliable borrower. Higher scores often mean better borrowing terms, including lower interest rates and fees.
You can improve your 656 credit score by paying bills on time and keeping your balances low. Credit utilization, the amount of debt you owe as a percentage of your available credit, is also a key factor in your score.
To maximize your chances of boosting your score, you need to understand how certain behaviors will hurt or help your score and create a plan to make changes. Remember, however, that it takes time to build your credit. Items such as hard inquiries and missed payments on collection accounts typically fall off of your credit report after two years or seven years, respectively.
Credit Card Options with a 656 Credit Score
There are many credit card options available to people with a 656 credit score, including revolving and installment cards. These are the best way to start building credit as well as manage existing debt.
It’s also worth noting that these cards usually have a rewards program and often come with no annual fee. For example, the Capital One QuicksilverOne Cash Rewards Card is a good option for a 650 credit score with its 1.5% cash back on purchases.
Other perks include an automatic credit line increase in as little as six months and the ability to earn points for every purchase you make. These features can be especially useful for college students looking to build their credit score.
Auto Loans with a 656 Credit Score
Your credit score plays a big role in your car financing options, and it will affect how much you pay for a vehicle. If your credit score is low, you may have trouble getting approved for a loan, but it’s not impossible.
A good credit score is usually reserved for borrowers who have a long credit history and are known to be able to manage multiple accounts with on-time payments. These borrowers are also in a good position to get the best rates on their loans.
Those with a 656 credit score can still get an auto loan, but they might need to pay higher interest than those with better scores. However, this can be avoided by repairing your credit. A few months of work can make a huge difference in your ability to qualify for your ideal terms and rates.
Personal Loan Options with a 656 Credit Score
You may have a lower credit score than you need to get a personal loan, but there are still plenty of options out there. Some lenders even offer fair-credit loans, so you can borrow money at lower interest rates than borrowers with higher credit scores.
To start, you should pre-qualify with NerdWallet to see estimated rates from lenders that partner with us. It’s a quick and free way to get a sense of how likely you are to be approved for a personal loan and see what rates you might qualify for.
You can also check out our list of the best personal loans for people with fair credit. Some of these offers offer low rates and flexible terms, so you can choose the right one for your needs.
Mortgages with a 656 Credit Score
There are a lot of mortgage options available to borrowers with a 656 credit score. These include conventional loans, FHA loans, VA loans, USDA loans, jumbo loans and non-prime loans. Depending on your credit and your lender, you may also be eligible for down payment assistance programs.
If you’re interested in taking out a mortgage with a 656 credit score, the best way to start is by repairing your credit. With a little bit of work and the help of a reputable credit repair company, you can raise your 656 credit score and qualify for better loan terms. You can reach out to an industry leader like Credit Glory for more information and a free evaluation of your credit. Once your credit is fixed, you’ll be in a much stronger position to get the home loan that you’ve always wanted with terms and interest rates that are right for you!