Wondering if a 645 credit score is good?
A 645 credit score is considered fair. It’s not the best, but it’s also not the worst. If you have a 645 credit score, you can still get approved for most loans and lines of credit. You just might not get the best interest rates or terms.
With a little work, you could raise your credit score to improve your chances of getting approved for better loans and lines of credit – and save money on interest in the process.
This article will break down the FICO credit score range, factors that impact your credit, what a 645 credit score will get approved for, and finally, what you can do to improve your score.
Understanding the Credit Score Range
Before talking about your 645 credit score, let’s cover some of the basics.
A FICO score is the credit score most lenders use to make lending decisions. It ranges from a low of 300 to a high of 850, and your score will fall somewhere in that range.
So what are some good credit scores to have? Well, it really depends on who you’re asking, but as a very broad benchmark, 580 and below is considered a poor credit score, and 740 and above is considered very good.
Below is a breakdown of the FICO score ranges and what it means:
- 300-580 Bad Credit: You will have a hard time getting approved for loans and lines of credit. If you are approved, the terms will likely be unfavorable.
- 580-669 Fair Credit: You can get approved for some loans and lines of credit, but the terms will likely not be favorable.
- 670-739 Good Credit: You should have no problem getting approved for loans and lines of credit. The terms will be favorable.
- 740-799 Great Credit: If you have a credit score in this range, you will likely be approved for loans and receive lower interest rates.
- 800-850 Excellent Credit: This is the highest credit score range. If you have a score in this range, you will probably be approved for loans and receive the lowest interest rates.
A 645 Credit Score is considered a FAIR credit score. This means that you can get approved for most loans and lines of credit, but the terms will not be favorable.
Credit Score Factors
Now that we’ve established the Credit Score ranges, let’s dive into the factors that go into your credit.
Multiple factors affect your credit rating: some good and some bad. The most important factor is your payment history, which makes up 35% of your credit score. This is followed by your credit utilization rate, which is 30% of your score. The third most important factor is the length of your credit history, accounting for 15% of your score. Finally, 10% each is allotted to your credit mix and new credit.
1) Your Payment History. This is the most important factor in your credit score. Your payment history makes up 35% of your credit score. This means that if you have a history of making late payments or missing payments, it will have a negative impact on your score. On the other hand, if you have a history of making on-time payments, it will positively impact your score.
2) How Much You Owe. This is the second most important factor in your credit score. Your credit utilization is 30% of your score. This means that if you have a lot of debt, it will have a negative impact on your score. On the other hand, if you have a low amount of debt, it will positively impact your score.
3) The Length Of Credit History. This is the third most important factor in your credit score. The length of your credit history is 15% of your score. This means that if you have a long history of borrowing and repaying debt, it will positively impact your score. On the other hand, if you have a short credit history, it will have a negative impact on your score.
4) The Mix Of Credit Types. This is the fourth most important factor in your credit score. Your credit mix is 10% of your score. This means that if you have a mix of different types of debt, it will positively impact your score. On the other hand, if you only have one type of debt, it will have a negative impact on your score.
5) New Credit. This is the fifth most important factor in your credit score. Your new credit is 10% of your score. This means that if you have recently applied for a lot of new credit, it will have a negative impact on your score. On the other hand, if you have not applied for any new credit, it will positively impact your score.
Now that we’ve gone over the major factors that affect your credit score let’s talk about what you can get approved for with a 645 score.
Getting Approved with a 645 Credit Score
Credit Cards
If you have a 645 credit score, you will likely be approved for most credit cards. However, you may not be approved for the best credit cards. The best credit cards usually require a credit score of 720 or higher. But don’t worry, there are still plenty of good credit cards you can be approved for.
Auto Loans
If you have a 645 credit score, you should be able to get approved for a new car loan. However, you may not get the best interest rates. The best interest rates are usually reserved for people with credit scores of 720 or higher.
Mortgage Loan
Getting approved by mortgage lenders with a 645 credit score is possible, but you may have to look around a bit to find a lender who’s willing to work with you. Also, your interest rate will be higher than someone with a good score but lower than someone with a bad score. Therefore, it’s important to compare different offers from the financial institutions and make sure you get the best deal possible.
Home Equity Loans
Home equity loans and lines of credit are also possible with a 645 credit score. However, expect higher interest rates compared to someone with an higher credit score. As always, it’s important to compare different offers and make sure you get the best deal possible.
Personal Loans
Getting a personal loan with a 645 credit score is possible. However, the interest rates will be higher than someone with a good credit score. As always, it’s important to compare different offers and make sure you get the best deal possible.
As you can see, there are a number of different options available to you with a 645 credit score. While your interest rates may be higher than someone with an excellent score, you can still get approved for various loans and lines of credit. Just make sure you compare different offers to get the best deal possible.
Improving your 645 Credit Score
While a 645 Credit Score is considered a good score, there’s always room for improvement. If you’re looking to improve your score, you can do a few things.
It’s essential to understand what’s on your credit report. You can get a free credit report by visiting AnnualCreditReport.com. You can pull all three major credit bureaus with no strings attached. The steps to pull your credit report are easy and link you directly with Experian, TransUnion, and Equifax, all in one place.
Once you’ve obtained a copy of your report, you can begin working on higher scores by following the steps below:
1) Improve Your Payment History. This is the most important aspect of your credit score, so if you want to get better results here, the best way is to pay off any remaining debts before applying for a loan or new credit card. While it’s not possible to change history that has already passed, you can still take control of the future by improving your payment history now by making timely monthly payments.
2) Improve Your Debt Usage. This is also an important factor in your credit score. You can improve your debt usage by paying off outstanding debt and avoiding taking on new debt. If you have a lot of debt, you may want to consider consolidating your debts into one monthly payment. Items such as credit card debt are an easy way to pay down to see a jump in your score.
3) Make Sure You Have the Right Credit Mix. This factor looks at the different types of credit you have, such as revolving credit (such as credit cards) and installment loans (such as auto loans). Having a mix of both is generally better for your score than just having one or the other. If you don’t have much credit history, you can start by applying for a few different types of credit, such as a credit card and an auto loan.
4) Don’t Open New Accounts If Possible. Every time you apply for new credit, it results in hard inquiries on your credit report. These inquiries can slightly lower your score, so if you’re not looking to apply for any new credit, it may be best to avoid opening any new accounts.
5) Pay Off Debt Before Adding More. It’s important to keep your credit utilization low, so you should pay off any existing debt before adding any new debt. This will help improve your score in the long run.
6) Improve Your Score by Asking for Lower Rates. Once you have start having a good credit score, you may be able to get a lower interest rate on your existing loans and credit cards. This can save you money in the long run, so it’s definitely worth asking for lower rates if you have a good credit score.
7) Improve Your Score by Using Different Lenders. If you have a good credit score, you may be able to get approved for loans and credit cards from different lenders. This can help improve your score because it will show that you’re not reliant on just one lender.
9) Improve Your Score by Remembering the Golden Rule. The golden rule of credit is to use it sparingly and always make your payments on time. If you can follow this rule, you’ll be well on your way to improving your credit score.
Following these simple steps can help you improve your credit score. Just remember to keep an eye on your credit report so you can catch any errors or potential problems that may arise.
With a 645 credit score, you may have some of this covered, but it’s still important to focus on the steps above to make sure you’re doing everything you can to improve your score.
Credit Repair Companies
If you’re in the market to get a home loan or auto loan and want to take advantage of the best rate, a good option may be to consider using a credit repair company . Also, if you have a ding on your credit report and you’ve done everything you can to remove it, a credit repair company may be able to help.
A few companies we recommend are Credit Saint and Sky Blue Credit Repair.
Credit Saint
Credit Saint is a credit repair company that has been in business since 2004. They have an A+ rating with the Better Business Bureau and have helped remove charge-offs and other negative items from people’s credit reports.
Credit Saint offers a wide variety of services to help you fix the most derogatory marks on your credit reports, such as late payments, charge-offs, and other services.
Credit Saint can help you with credit counseling, credit monitoring, and identity theft protection.
Credit Saint has a high customer satisfaction rate and offers a money-back guarantee on all their services.
Blue Sky Credit Repair
Sky Blue Credit Repair is another credit repair company that has been in business since 1989. They have an A+ rating by the Better Business Bureau and have high customer satisfaction.
Just like Credit Saint, Sky Blue Credit Repair can help you remove a charge-off along with any other delinquent account from your credit report. They also offer a money-back satisfaction guarantee on all of their services.
Both Credit Saint and Sky Blue Credit are reputable credit repair companies with a long history of helping people repair their credit. If you’re struggling to remove a charge-off from your credit report, hiring one of these professionals may be the best step for you.
Wrapping It Up
In today’s world, credit is an ever-present component of life. It governs the terms on which we can borrow money and helps dictate what products are available to us at different prices.
A bad credit score can limit our options and make it difficult to get approved for loans, while a good credit score can open up a world of possibilities.
If you have a 645 credit score, you have some work to do, but this can be easily achievable by following the suggestions or using a credit repair service. You may be subjected to high interest rates on a conventional loan. In that case, the best option may be to consider FHA loans or work with a credit union.
Remember to keep an eye on your credit report and focus on the steps above to make sure you’re doing everything you can to maintain a good credit score.
Use these tips and tricks to improve your credit score so that you can take advantage of the best rates possible. A good credit score can save you money in the long run, so it’s worth taking the time to focus on your credit.
