A 650 credit score is below average and will limit your options, but you can still borrow

A 650 credit score falls in the "fair" range for most scoring models. It sits below the 670 threshold that many lenders use to separate "good" from "fair" credit, and well below 740, where rates and terms improve noticeably. With a 650 score, you will pay higher interest rates than someone with a 700+ score, and some lenders will decline you outright.

What matters most is what you are trying to do. A 650 score may work for a car loan or personal loan from a credit union, but it will shut you out of conventional mortgages and most credit cards. For rental housing, many landlords run credit checks, and a 650 may trigger a request for a co-signer or higher deposit, though it rarely disqualifies you on its own.

Key Takeaways

  • A 650 credit score is considered fair, not good, and will result in higher interest rates on loans and credit cards.
  • Most mortgage lenders require a score of at least 620 for FHA loans and 680 for conventional mortgages, so a 650 may work for FHA but puts conventional out of reach.
  • Credit card offers at 650 are rare; most cards require 670 or higher, though secured cards and credit-builder cards are available to you.
  • Landlords may accept a 650 score but often ask for a larger deposit, a co-signer, or proof of income to offset the risk.
  • Your score can move 50 to 100 points in six months if you pay bills on time and reduce credit card balances below 30 percent of your limits.

How a 650 score affects mortgage and home loans

An FHA loan (backed by the Federal Housing Administration) typically accepts scores as low as 580, though 650 puts you in a stronger position for approval and better rates. Conventional mortgages—the kind most people get—usually require 680 or higher. Some lenders will go down to 660, but rates will be 0.5 to 1 percent higher than for a 740+ score, which adds thousands to the cost of a 30-year loan.

If you are house-hunting with a 650 score, FHA is your realistic path. You will need a down payment of at least 3.5 percent, proof of stable income, and a debt-to-income ratio below 50 percent (meaning your monthly debts cannot exceed half your gross income). A mortgage broker can shop multiple lenders; some specialize in lower scores and may offer better terms than a bank will.

Credit cards and lines of credit at 650

Most credit card issuers will not approve you at 650. The threshold for standard cards is usually 670 to 700. However, you have two real options: secured credit cards and credit-builder cards. Both report to the credit bureaus and can raise your score if you pay on time.

A secured card requires a cash deposit (usually $200 to $2,500) that becomes your credit limit. You use it like a normal card, and after 12 to 24 months of on-time payments, the issuer may convert it to an unsecured card and return your deposit. Credit-builder cards work differently: you borrow a small amount (often $500 to $1,000) that the lender holds in a savings account. You make monthly payments, and once you finish, you get the money back plus interest. Both types cost money in fees, but both report to bureaus and both work.

Renting with a 650 credit score

A 650 score alone rarely disqualifies you from renting. Most landlords care more about eviction history and income than credit score. However, a 650 may trigger a larger security deposit—sometimes double the standard month's rent—or a request for a co-signer (usually a parent or relative who guarantees payment if you do not pay).

If a landlord asks for a co-signer, understand what that means: the co-signer is legally liable for rent if you fail to pay. Some landlords will also ask for proof that your income is at least 2.5 to 3 times the monthly rent. If you have recent eviction or collections on your record, the score matters more; if your record is clean, the score may not matter at all. Ask the landlord directly what their credit score requirement is before you spend money on an application.

Why your score is 650 and how to raise it

A 650 score usually means one or more of these: late payments in the last two years, credit card balances above 50 percent of your limits, a collection account or charge-off, or a short credit history. The fastest way to raise your score is to bring credit card balances below 30 percent of your limits. If you owe $3,000 on a card with a $5,000 limit, paying it down to $1,500 can move your score 20 to 50 points within a month or two.

On-time payments matter most. If you have missed payments, each one stays on your report for seven years, but its impact fades after two years. Making every payment on time for the next six months can raise a 650 to 700 or higher, depending on what else is on your report. Avoid opening new accounts or closing old ones during this time; both can temporarily lower your score.

Auto loans and personal loans at 650

Auto lenders are more forgiving than mortgage lenders. Most credit unions and some banks will approve an auto loan at 650, though the interest rate will be 2 to 4 percent higher than for a 750+ score. Credit unions typically offer better rates than dealership financing; if you are a member, start there.

Personal loans from banks are harder to get at 650, but online lenders and credit unions often will lend. Rates vary widely—from 10 percent to 36 percent depending on the lender and your income—so compare offers before you accept. Peer-to-peer lending platforms like LendingClub also work with 650 scores, though rates are usually high.

How long it takes to move from 650 to 700

If you pay every bill on time and reduce credit card balances, you can realistically move from 650 to 700 in six to twelve months. The exact timeline depends on your credit mix (having both credit cards and an installment loan helps), your payment history, and how much you owe. Someone with one late payment and high balances will move faster than someone with multiple late payments or a collection account.

Do not close old credit cards after you pay them down. Closing a card reduces your available credit, which can lower your score. Instead, keep the card open and use it occasionally. Do not apply for multiple new cards or loans in a short time; each application triggers a hard inquiry, which temporarily lowers your score by a few points.

Frequently Asked Questions

Can I get a mortgage with a 650 credit score?

Yes, through an FHA loan, which accepts scores as low as 580. Conventional mortgages typically require 680 or higher. With a 650, FHA is your realistic option; you will need a 3.5 percent down payment and proof of stable income. A mortgage broker can help you find lenders willing to work with your score.

Will landlords reject me because of a 650 score?

Unlikely. Most landlords prioritize income and eviction history over credit score. A 650 may result in a larger deposit or a co-signer request, but it rarely causes outright rejection. Ask the landlord upfront what their credit score requirement is before you apply.

How much will my interest rate be higher at 650 versus 750?

It varies by loan type. On a mortgage, the difference is typically 0.5 to 1 percent, which adds $100 to $200 per month on a $300,000 loan. On an auto loan, the difference is 2 to 4 percent. On a personal loan, rates at 650 can range from 15 to 36 percent depending on the lender.

What is the fastest way to raise a 650 score?

Pay down credit card balances below 30 percent of your limits. This can raise your score 20 to 50 points within one or two billing cycles. Combine this with on-time payments for six months, and you can realistically reach 700 or higher.

Should I apply for a secured credit card at 650?

Yes, if you want to build credit. A secured card requires a cash deposit but reports to credit bureaus and can raise your score if you pay on time. After 12 to 24 months, many issuers convert it to an unsecured card and return your deposit.