What does a 613 credit score mean?A credit score of 613 is higher than the lowest credit score of 300, but it’s still a long way off from the highest credit score of 850. In the main scoring models (FICO and VantageScore), 613 is in the “fair” range. Show
A credit score of 613 is still low enough that it can make it hard to open new lines of credit and can damage your quality of life. Here’s how your score compares with the average credit score for different generations. How a below-average credit score can affect your financesHaving a 613 credit score makes it harder to get approved for a loan or a new line of credit, as shown in the table below. If you do qualify, you’ll end up paying more money for your credit or loan because your lender will charge you a higher interest rate. Loans and Credit You Can Get with a 613 Credit Score
A bad credit score can also affect your life in other ways. For instance, it can limit your job prospects and your options for renting an apartment because many landlords and employers run credit checks. Employers probably won’t see your actual numerical score, but they will be able to see the negative items in your credit history that contributed to it. Having a low credit score also means you’ll probably end up paying more for services like insurance. That all might seem bleak, but it’s not as bad as it seems. There are several ways you can improve your credit score once you understand how credit scores work and how they’re calculated. How your 613 credit score was calculatedAs mentioned earlier, the two main credit scoring models are FICO and VantageScore. Although the two models have minor differences, both calculate credit scores based on the following factors:
If your score is 613, it suggests that you may have one (or both) of the following issues with your credit history:
The good news is that you can recover from both situations. However, before you worry about improving your credit score, it’s important to make sure you’re not doing anything to damage it. To do this, follow these tips:
VantageScore vs. FICO credit score calculation methodsVantageScore and FICO take the same factors into account to produce your score, but they weight them slightly differently. Here are just a couple of the differences between FICO and VantageScore: 3
The tables below show how the models weigh your financial decisions to produce your score:
Putting your 613 score in context: how it compares to other scoresThe table below shows the average VantageScore and FICO credit scores among US consumers, as well as your credit rating in each of these models and how far your 613 credit score is from the next scoring category.
How to improve your 613 credit scoreAs you’ve learned, a 613 score is somewhat below average. There are a few reasons why you might have a low score:
Your score is close to the point where a fair credit score becomes a good one, so you should be able to boost it into the next range without too much trouble—provided you follow the right strategies. You should investigate both: Quick fixes for your 613 scoreTo fix your credit in the short term, get copies of your credit reports and scan them for negative marks. If you find any, see if you can have them deleted. To do this:
To dispute negative information on your credit report, create a dispute letter by downloading the free template below. If you’re able to remove the negative marks dragging down your score, you might be able to bump your score of 613 into the good range very quickly. Strategies to build your credit and improve your 613 score over timeIf you can’t delete the negative marks on your reports (or if you discover that they aren’t actually responsible for your depressed score), you’ll need to look into methods for building your credit in the long run. Arguably, you should familiarize yourself with these methods no matter what your situation is—credit-building is a lifelong journey, after all, and it doesn’t stop once you achieve a good score. Try to:
How long will it take for your score of 613 to improve?Building credit takes time, but if you’re diligent about following the strategies we’ve listed, you may see a boost in your score right away (particularly if you’re able to pay down large debts or get negative items deleted from your credit reports). You’ll also see a slow but steady increase over the next 1 to 2 years. If there are negative marks on your credit report that are bringing your score down, they’ll remain there for 7 years (except for certain bankruptcies, which stay for 10). The upshot is that in 7–10 years, your 613 score is certain to have completely recovered from any mishaps you made in your past, so long as you take the right steps to rebuild your credit. Life with a 613 credit scoreUnless your low credit score is a mistake caused by major errors on your credit report, you might remain in the “fair” range for at least the next few months. Until your score improves, avoid taking out any unnecessary loans to ensure that you won’t sabotage your progress by accumulating debt that you can’t pay off. Getting auto loans with a 613 credit scoreThere is no credit score too low to get an auto loan, and you should be able to get one when your credit score is 613, but it might have a relatively high interest rate. Before taking out an auto loan, consider whether the potential toll it’ll take on your finances is worth it or if you can wait until you get your score in the “good” range. According to a 2020 quarterly report by Experian, people with credit scores of 613–660 (referred to as near–prime borrowers) had average interest rates of 10.13% on their used car loans and 6.64% on new car loans, whereas people with credit scores of 781–850 (super-prime borrowers) received average rates of 3.80% and 2.65%. 4 Waiting until your score improves could save you hundreds of dollars each month and thousands of dollars over the life of the loan. If you need to buy a car before your credit improves, then consider getting a used car that you can pay for upfront. If you’re set on getting an auto loan with bad credit, then you should pay as large of a down payment as you can afford, and consider getting prequalified or applying for a preapproval from your bank or credit union to increase your bargaining power. Getting a mortgage with a 613 credit scoreGetting a mortgage is possible with a credit score of 613, although your options will be limited. The minimum credit score to get a mortgage backed by the Federal Housing Administration (FHA) is 500, and you can get a mortgage with a down payment of only 3.5% if your credit score is 580 or higher. To get an FHA loan, you will need to:
It’s worth noting that you won’t be eligible for an FHA-backed loan if you had a foreclosure in the past three years or filed for chapter 7 bankruptcy in the past two years. 7 If you’d rather get another type of mortgage, then there is a small chance you’ll qualify. However, it’s more likely that lenders will require a higher credit score. Here’s what requirements you’ll need to meet to be eligible for other types of mortgages:
Because your mortgage options are limited with a 613 credit score, if you’re not interested in an FHA loan or you don’t qualify for one, you’ll probably need to rent an apartment. Renting with a 613 credit scoreYou often need a credit score to rent a house or apartment since many landlords run credit checks on prospective tenants. There’s no universal minimum credit score for tenants, but many landlords look for a score above 600. If your credit score doesn’t satisfy the landlord’s requirements, consider discussing your circumstances with them and showing them evidence that you’ll reliably pay your rent on time each month. Getting a credit account with a 613 credit scoreWith a credit score of 613, you’ll be able to get a credit card, but you might not have a lot of options other than subprime credit cards, and you won’t be able to get rates as good as those offered to people in higher credit score ranges. The types of credit cards you can get with a credit score of 613 generally fall into two categories:
Given the choice between those two options, a secured credit card is always your best bet if your main goal is to build your credit. Unsecured subprime credit cards can be dangerous because their high interest rates and fees might jeopardize your finances. Don’t apply for a credit card if you know your credit score doesn’t meet the company’s requirements. Most applications will trigger a “hard inquiry,” which will cause your score to temporarily drop. To find out if the card issuer has a minimum credit score, check their website or give them a call. How can I raise my credit score from 600 to 700?Here are some of the best ways.. Pay on Time, Every Time. ... . Reduce Your Credit Card Balances. ... . Avoid Taking Out New Debt Frequently. ... . Be Mindful of the Types of Credit You Use. ... . Dispute Inaccurate Credit Report Information. ... . Don't Close Old Credit Cards.. Can you get a loan with a 613 credit score?A 613 credit score can be a sign of past credit difficulties or a lack of credit history. Whether you're looking for a personal loan, a mortgage or a credit card, credit scores in this range can make it challenging to get approved for unsecured credit, which doesn't require collateral or a security deposit.
How can I raise my credit score from 600 to 800?5 Habits To Get 800+ Credit Score. Pay Your Bills on Time – All of Them. Paying your bills on time can improve your credit score and get you closer to an 800+ credit score. ... . Don't Hit Your Credit Limit. ... . Only Spend What You Can Afford. ... . Don't Apply for Every Credit Card. ... . Have a Credit History. ... . What an 800+ Credit Score Can Mean.. What interest rate is 613 credit score?An individual with a 613 credit score will typically receive a credit card interest rate of between 20.5 and 16.5 percent. In comparison, someone with excellent credit can receive an average credit card interest rate of 13.5 percent.
|