How low is too low? When it comes to the credit score, the lower it gets, the harder it is to get a loan. It doesn’t necessarily mean, that with a credit score of 600 You can not get any credit.
Thirst thing You have to do when applying for a loan is checking your credit score. Only then You can decide where to go for financial help. According to Experian data, about 10 percent of all scores are between 600 and 649 points, while another 10 percents are between 500 and 550. And that even isn’t the lowest You can go, because points can be as low as 300. As You can see, 600+ isn’t that bad and doesn’t necessarily mean that You can not take any loan.
Why is my score so low?
You can check it by submitting it to the credit agency for a credit report. Once a year it can be done for free. Typically to get to the range of 600 You have to pay late on numerous occasions and/or on different loans and credit cards. alternatively, if You are just starting to build Your financial history Your score can be just 600 because You don’t have credit cards, loans, etc. yet. In that case, You still can take a loan, but it would be more expensive. Alternatively, You can wait and build Your history to the point when all mayor banks will trust You with their money.
If You didn’t do anything that could affect your score but it is still low, just apply for the credit report and check all the information. Sometimes Your information can be mixed with someone else’s, so it is better to address these issues right away.
What can I do with a score of 600?
It is not true that with that score there is nothing You can do. Although Your options are more limited. You still can get a loan and there are loans for a credit score of 600, but maybe it will not be as much as You can expect with a better score and the payment rates will be higher. Usually, with that kind of score, You can begin to look for an apartment. The minimum that is expected from tenants is usually a credit score of 620, so it is best to build up Your score to at least that.
Credit cards and loans for 600 credit score
Usually, You can start thinking about credit cards at a point when You have a score of at least 630 points. If it is lower, try for a secured card. In that case, You have to make upfront payments on the card to use it. Using it wisely is a good way to build up Your score to be better with time. It is also less risky than a credit card, You don’t have to worry about debt. Usually, users are more careful with their cards if they have to make an upfront payment, which is also a plus.
Can I buy a car?
Usually, car dealers don’t write off people with a bad rating. You can expect to pay more than someone with a good credit score, but with a solid 600, You can still buy most of the cars You want to buy in a popular dealership.