Are you wondering what a 611 credit score means?
A credit score of 611 is considered to be poor. You may have trouble getting approved for loans or even renting an apartment if your credit score is this low.
In addition, it’s essential to understand the factors that affect your credit scores and how they can impact your life. So, if you’re looking for ways to improve your credit score, read on! We’ll discuss some tips below that will help you make improvements in no time at all.
The first step in improving a bad credit score is understanding why it’s so low in the first place.
There are many reasons someone might have a lower than average FICO® Score – from missing payments on bills like student loans or utilities to having too much debt relative to their income level or not using enough available lines of revolving credit (credit cards).
Whatever the reason, there are steps you can take today that will begin helping improve your overall financial situation and ultimately lead to better scores.
In this article, we’ll discuss what your credit score means, how it impacts your ability to get loans and what you can do to improve your score.
Understanding the Credit Score Ranges
Your FICO score falls in one of five ranges. The credit score range are listed below, along with an explanation of what it means.
Credit Score Ranges
300-580 – Bad credit. This is also known as Subprime credit scores and means you have a poor credit history. While it typically means your payment history has been extremely bad, the numbers here are just guidelines based on common scoring models, so not everyone will fall into these same ranges.
581-669 – Fair Credit Scores. With Fair Credit scores, you still fall on the higher end of this category, so while you aren’t considered “bad” anymore, you still don’t have an excellent track record either. Getting loans within this category will be difficult, and if you are approved, it is usually accompanied by higher interest rates.
670-739 – Good Credit Scores. You now have a fair amount of experience when it comes to managing credit and making payments on time, and so lenders tend to be more willing to give you the benefit of the doubt.
740-790 – Very Good Credit Scores. You have a long-standing history of living within your means and paying your bills in full and on time, which we want moving forward.
800-850- Exceptional. If you have very little or no credit blemishes on your history, then 800-850 is where you’ll end up. This is considered an excellent credit and typically signifies that the consumer has paid their bills punctually for many years. These higher scores typically qualify for the best interest rates on loans and credit cards.
If your credit score is 611, you fall in the range of Fair, which means your credit report has some blemishes and can impact your ability to get loans.
It is important to keep in mind that just because you have a 611 score doesn’t mean you’re doomed for an eternity of bad credit.
There are steps you can take today to begin improving your credit score.
For context, the national credit score average is somewhere between 680-711. This means that if you fall below 680, your credit score will start to impact certain aspects of your life, like not being approved for loans.
Now that we’ve established the average credit score in the US, let’s discuss what items are factored in your credit report.
Credit Score Factors
Some of the factors that may be impacting your credit score and contributing to a lower than average range:
- Credit History: Your credit history has a large impact on your credit scores. The longer you’ve been using credit, the more likely it is for lenders to consider you credible. An excellent way to start boosting this part of your score is to start using credit responsibly. More specifically, if you have never had a credit card before, consider applying for one and making sure to pay your bill as quickly as possible to demonstrate that you can handle it responsibly.
- Amount Owed: The amount of money you currently owe on all of your accounts compared with the total amount of credit available is a significant factor. To improve your score, this number should be as low as possible. If you have multiple accounts reporting high amounts owed, consider asking creditors for a lower balance or look into transferring balances through 0% interest credit cards.
- Length of Credit History: Having accounts in your credit history for an extended period can be beneficial to your score. It demonstrates that you are responsible with your accounts and continue to pay your debts. Length of Credit History is an important factor when lenders are qualifying you for a loan. Make sure you continue to pay these accounts on time.
- Credit Mix: This category measures how many different ways you can use credit. For example, if you don’t have any other types of accounts (credit cards, loans, etc.) then your score may be lower than it could be. Having a mix of credit accounts can indicate to lenders that you are responsible and able to handle multiple types of debt responsibly. The best way to improve your credit mix is to apply for a new kind of account and make sure to use it responsibly.
- New Credit: One of the most damaging factors in a credit report is applying for a new account and getting denied. Because of this, the first thing you need to do when improving your credit is to make sure not to apply for any new accounts at all. If you are currently in the market for a new car, your potential lender will likely pull one of your credit reports to determine loan eligibility. If there are recent inquiries on this report or accounts opened recently, it can hurt your chances.
Getting Approved with a 611 Credit Score
Credit Cards
If you have a 611 Credit Score, you may not be approved for the best credit cards.
However, don’t lose hope! You can still apply for a credit card targeted specifically to people with lower scores. They may not have the best rewards or lower interest rates, but they are definitely better than nothing.
Another option you can explore is getting a secured credit card.
A secured credit card is similar to a regular credit card, but the funds are deposited into a savings account with a bank.
This can be a great way to build your credit without worrying about if you have the funds necessary to pay off the balance!
Auto Loan
Unfortunately, this score is on the lower end, so you might have a hard time finding lenders who are willing to work with you.
If you need a car loan, consider getting your down payment together and look for dealerships that have in-house financing.
They generally don’t check credit as closely as traditional banks or finance companies, which can benefit you.
Home Loans
If you are looking to buy a home, getting approved by traditional mortgage lenders might not be the easiest of tasks. Don’t worry though! You can still get it done with some hard work and research on your part.
Begin by looking into an FHA loan. This is a government organization that provides low-interest loans to first-time home buyers.
If you don’t qualify for the FHA, consider a VA home loan that is similar but available to veterans and military personnel.
A credit union is also great option for those with poor credit scores who want to rebuild their credit. They offer flexible loan terms and helpful tools that can help build up good habits like paying on time every month and can even offer a lower rate than what your score would qualify for.
Personal Loan
Personal loans are a little bit easier to get approved for compared to the other types of loans.
However, you should still look at your budget and ensure that you can afford this loan before applying.
The last thing you would want is to end up with another negative mark on your credit report because you didn’t take care of it!
Other Long Term Loans
Unfortunately, with a 611 credit score, you will have to work extra hard for most of these conventional loans.
Your best bet would be to apply for a loan either with private individuals or family members.
You can also try applying for a payday or title loan but make sure that your research the terms carefully before signing any paperwork!
10 ways you can improve your 611 credit score
As we discussed, having a score of 611 makes it difficult to get approved for loans or a higher-tier credit card.
You’ll want to make a plan to improve your score. That said, there are many things you can do to improve your score quickly to increase the chances of getting approved for a loan or credit card.
Below are 10 things you can do today to improve your score.
- Pay off all outstanding debt. It’s a good idea to make sure that all your debt is paid off. Having debt lowers your credit score, so you will need to pay it off before making any other improvements to your score.
- Keep dormant accounts open. If you have an old account that isn’t doing anything, make sure you leave the account open as this increases your average age of accounts which helps increase your credit score.
- Make a big purchase. Another excellent way for improving your credit score quickly is to make a big purchase like buying a new TV or an appliance for your home or car. Paying off the full balance on time and in full every month shows lenders that you can responsibly take care of another financial responsibility and will help improve your score. Only do this if you can afford to pay off the bill when it comes.
- Reduce your credit utilization. Your credit score is based on the total amount of debt you owe compared to how much available credit you have. Make sure that you keep your utilization rate below 10 percent. This means that for every $1 of available credit that you have, then try not to use more than 10 cents.
- Keep Balance Low. Maintain a low balance on any new accounts or loans, so they don’t affect your score negatively in the short term.
- Pay Bills on Time. Avoid late payments and pay off all bills and loan balances on time will help improve your score tremendously over time. If you cannot afford to pay off the entire bill, make sure you are paying at least the required monthly payments.
- New Accounts. Avoid opening up too many new accounts at once (such as a new credit card), as this can lead to lower scores due to having too many inquiries. If you open too many simultaneously, then lenders might think that you are taking on more debt than you can afford and will leave them to pay.
- Do your Research. Avoid applying for loans without carefully considering your options and thoroughly researching what other loan terms and offers are available. You don’t want to apply for one only to find out that it wasn’t actually a good deal after all!
- Monitor your credit. Keep track of your credit by reviewing your credit report thoroughly and sign up for alerts on any changes that take place. You can sign up at Annual Credit Report to monitor all three credit bureau agencies.
- Dispute any irregularities. If you run into any discrepancies or errors on your report, then be sure to contact the bureau and inform them of the mistakes.
FAQ
What does a Credit Score of 611 mean?
A credit score of 611 means that you’re not quite ready for prime time, but with some attention and practice, you might find yourself able to get approved for more loans or even get approved for better loan terms!
What is a Good Credit Score?
For most people, a good credit score is anything over 700 points or so. You can determine this by checking out the scale at the top of your credit report card online.
Generally, if it’s above 740, you are free and clear to apply for any loan under the sun, including personal, car, student, etc, without too many issues!
How Do I Improve My Credit Score?
You can improve your score quickly by following these tips word for word! Of course, you should also be paying off old debts that have high-interest rates right away before tackling anything else.
You should never overextend yourself or take on more debt than you know that you’ll be able to pay off.
How long does it take to see an improvement?
Your score will begin to increase within a few months of making changes. Be sure to monitor your credit report for any inaccuracies and make necessary corrections as soon as possible.
Where can I find my Credit Score?
You can find your credit score at all the major credit bureaus such as Experian, TransUnion, and Equifax. However, I recommend using Annual Credit Report. They pull all three reports in an easy-to-read format.
Conclusion
The importance of having a good credit score is undeniable. It will help you get approved for loans and other services, give you more access to money in general, and can positively impact your life overall.
The tips provided are just the beginning of what’s possible when it comes to improving your lower credit scores.
You can increase your credit score by following the advice provided here, checking with lenders to see what they are currently looking for in a good candidate, and utilizing all of the tools available to you when it comes to researching new loans.
A 611 credit score isn’t great, but it is certainly enough to get started on improving your financial situation on your way to a higher credit score.
By putting some effort into increasing your credit score, you will be able to reap the rewards that come along with having a good credit history!
