LET’S TALK ABOUT HAVING A CREDIT SCORE OF 645: WHAT IT MEANS TO ALL OF US AND YOU
Well first, we need to discuss the average credit score. There are three different credit companies here in the United States. There’s the Experian, TransUnion and Equifax. Each of them go about compiling credit score information in different ways. However, they arrive at pretty much the same results, give or take a few numbers.
IN the United States, as a whole, the normal range is between 330 and 860. Now, this is just a ballpark. Some states, like Minnesota, they end up getting scores like 718. It all depends on a person’s situation and credit history. Some are going to be higher than others. The number that sticks out as the most average is around 687. Southern states tend to have some more of the lower numbers. This is mainly due to economics and social climates that surround some of the residents.
WHAT DOES A 645 FICO SCORE MEAN?
This is a question that gets asked a lot, and we do mean a lot. Is 645 a good credit score? Is 645 a bad credit score? These are all thing that consumers want to know. Here’s a breakdown for some important factors. Your score is made up of a few things:
1)Payment history makes up about 35% of the tally.
2)Your total amount due comes in at 30%.
3)Your length of credit history counts for about 15%.
4)Any new credit or credit cards in use count for about 10% each.
Based on all of this, a breakdown of bad to excellent is arranged. Here’s how the official numbers rank.
700 or more–This is considered to be very good. You are considered to be very low risk by banks and other financial institutions.
680-699–You are usually considered to be a good investment. Most banks or loan officers will approve you on good terms.
620-679–Your still considered to be okay. If you have a 645 score, you are in this boat. You probably won’t be refused credit, but you won’t get the best rates either.
550-619— Your credit is not the best. You will have to shop around to find someone who is willing to take chance on you. If you do, your rates will be rather expensive. Many consider it to be a fair compensation for having the low scores.
550 and below– If you fall into this category, you are going to be having a terrible time finding someone to help you out. The best thing you can do is concentrate on repairing your credit. You’ll be hard-pressed to find someone willing to offer you help.
THE IMPACT OF MY 645 FICO SCORE ON MY FINANCES
In order to answer this questions, let’s explore 4 ways it can either cost you or save you.
1) Lenders use your history as an indication of your reliability. You might want to buy a car or a house. If you want a really, really good deal, than you will need to have a really, really good score. If you have a low score, this is definitely going to cause a red flag in the system. We are not saying that you won’t get the loan to buy the home or car, but, it’s going to be at a big rate.
If you don’t have any history, then there is nothing to go on. The lenders will hedge their best and hit you with a big interest rate. In other words, it’s not going to work in your favor. What if I buy something in cash? This could have a good or bad effect on your score. It’s either going to cost you or save you money.
2) It has an direct influence on your financial state over your job. More employers are doing credit checks these days. If you are applying for a high-stakes job, such as with money, your score needs to be very good. It has to be, or they won’t take a chance on you. There’s much debate as to whether or not this is fair. The simple truth is this, bosses are doing it anyway. If your score is not so hot, than they are not going to hire you.
3) It’s going to affect your chances of getting that dream home. If you don’t have a really great score, than you might have to settle for something else. It’s also important to landlords. Say you want to rent a place. Say you apply and the guy looks through your history, If your history is less than stellar, than the landlord is going to choose the other guy. It’s as simple as that. If you want to ensure that you will get the home of your dream, or at least rent it out, than you have do some serious repairs on your credit background.
4) It’s also going to affect your chances at re-financing. There are many people who like to re-finance on their home. People do this for various reasons. If your history is not good at all, than you might have to stick with the terms you have now. Why? The bank is not willing to risk it for something more.
HOW DOES MY SCORE STACK UP AGAINST OTHER CREDIT COMPANIES?
Let’s say you have a score of 645. Now, let’s look at how this score rates across the board.
FICO–You already know about this one. The score details are above for you in the last sections.
VANTAGE SCORE 3.0– This version is more advanced than the previous ones. The scores use you be between 501-990. It’s now 300-850. It’s been changed because this is the one that most people are familiar with. If you want to know how you rate, than just take the scale that was used for the previous and transfer it over.
Here’s a for instance.
Those who had a score of 501, you used to be seen as a bad score. Well, just transfer this result to the 300 score level. See how that works? A score that used to be under the umbrella of 701, you used to fall under the score of a good score. You still are, only now your score is ranked as 600.
VANTAGE SCORE 1.0 AND 2.0 The2.0 version falls under the 3.0 version. Take the information we gave you for the 3.0 version and use that. The 1.0 version is the way it used to be done. As we said above, nothing much has changed. Companies, bosses and lenders will still look at the details in the same way. The number ranking is the only difference here.
PLUS This one was developed by the Experian people. It uses the same rankings as Vantage Score version 1.0 does.
TRANS-RISK This one works much the same way as FICO does. The only difference is where they get their information. FICO pulls their information from Experian, Equifax and Transunion. Trans-Risk gets its information from the Credit Expert.
Is there a preferred version? Not really. The only thing that separates these two is that FICO is the one which is used more. Trans-Risk uses much the same details. The only difference is that the other one is more popular.
EQUIFAX–The only range difference with this one is that it goes from 280-850. This one is the main one used to compile the FICO scores.
HOW CAN I FIX MY SCORE, OR AT LEAST FIX IT IN SOME WAY?
There are a lot of things you can do to change your score. We will only be listing about 3 for now. Write these down, if you have to.
1)Pay off any old debt you have. Old debt is one of the leading factors with a credit score. Pay off anything that is outstanding, something like a credit card.
2)Adjust your way of living. Don’t pay out more than you are making. If you have to go without something for a while, then do so. It will be worth when you have the score looking better.
3)Don’t close your cards and open up new ones. If you must, have the limit raised. This is all part of the revolving door of credit. Don’t just pay off something to add more to it. This doesn’t make sense.
ERROR ON THE 645 CREDIT SCORE? HOW DO I GO ABOUT FIXING THIS?
This will happen from time to time. Sometimes the companies can screw things up. Just send a letter to the Credit Bureau. Send it certified, dated and everything. Keep a copy of what you send. Show them in detail what needs to be fixed. Give the a chance to look over what you sent them. This is one of the best ways to do it.
You can send an email, but, they might be require more information. It needs to be certified in every way. This is the only way they will take a look at it.
HOW CAN I GET A FREE CREDIT SCORE REPORT DONE?
You can use Equifax, Experian and TransUnion. This is going to be your best resource for the information. You can access a free report at least 3 times a year. You can also go to Credit Karma site. They give out free credit scores and reports a few times a year.
Please go these sites today and learn how you can better your score. The better your score, the more options you will have throughout your whole life.