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 neseserily 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 lowerst You can go, because points can be as low as 300. As Yuo can see, 600+ isn’t that bad and doesn’t neseserily mean that You can not take any loan.
Why is my score so low?
You can check it by submitting to the credit agency for a crdit report. Once a year it can be done for free. Typically to get to the range of 600 You have to pay late on numorous 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 Yuo 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 elses, so it is better to adress this 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 the best to build up Your score to at least that.
Credit cards and loand for 600 credit score
Usually You can start thinking about credit card at a point when You have the 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 credit card, as You don;t have to worry abut debt. Usually users are more carfully with their cards if they ahve to make upfront payment, which is also a plus.
Can I buy a car?
Usually car dealers doesn’t write off people with bad rating. You can expect to pay more that 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 dealerships.