A 633 credit score is considered slightly below average and is categorized in the “fair credit score” group. Despite the fact that you are not in the poor score category, there is still so much room for growth, and you should take advantage of it. Think of your score as a stepping stone to bigger...
Trying to figure out whether your 600 credit score is something to write home about? Then you have come to the right place! The world of finances is not easy for a layperson to understand. It’s as if it was intentionally designed that way to make things harder for you. That’s why we have put together this helpful guide to understanding what a credit score of 600 means.
Additionally, you will learn more about what other numerical values mean. And, you will learn what you can do with different values, including but not limited to obtaining large lifetime milestones, like buying a house or driving a cool new ride. If you want to learn more about what your 600 FICO score means, then read on!
- What Does a 600 Credit Score Mean?
- Credit Cards for a 600 Credit Score
- Car Loan Rates for a 600 Credit Score
- Personal Loan with a 600 Credit Score
- Home Loan with a 600 Credit Score
- How to Improve Your Credit
- Obtain Necessary Financing Today!
What Does a 600 Credit Score Mean?
Is 600 a good credit score? The answer, like most answers to questions in the financial realm, is “it depends.” The scale ranges from 300 to 850. That 550-point range can be broken down into generalized categories of what is great, good enough, poor, and abysmal. Generally speaking, if you have anything below a 571, you are in trouble. If you are somewhere between a 571 and a 668, that is considered all right—not necessarily excellent or terrible. So, if you find yourself with a credit score over 600 or sitting right at it, things could be worse, but you will still definitely want to work on improving it.
The 669 to 738 range is considered to be healthy, and will not generally stand in the way of you doing most things that you want. And, last but not least, anything over 739 is very healthy. This range should be the aim for everyone. With enough hard work, it is achievable no matter what value you are currently stuck at.
So, is 600 a bad credit score? It could certainly be worse. However, there is plenty of room for improvement. After all, having your value stuck at this number can set you back, and stand in the way of you achieving your material and financial goals.
Credit Cards for a 600 Credit Score
Just because your score is relatively sub-par, it does not mean that you can’t obtain a credit card! Nor does it mean that you will be stuck with some sketchy organization that nobody has ever heard of that charges you an average interest rate that’s through the roof! It just means that you are going to have to pay a bit more attention to the fine print that comes with opening up a new line.
Before heading down this road, make sure that you have analyzed your current economic situation and decided that you are in a good place to get another card. After all, cards are like loans for a 600 credit score. You can either figure this out on your own or you can have a professional help you out. But—more on this later. Generally speaking, getting a card is a better option than a 600 credit score mortgage or a home loan if you’re just starting out trying to rebuild yourself. This is due to the fact that the consequences are significantly lower if you mess things up.
Once you have decided that a card will not hurt your current situation, go ahead and start your research! Or, if you don’t have the time, sort through the handy list that we have put together for you below! Getting a card is much easier than getting a mortgage with a 600 credit score, so you have plenty of options.
It is true that many options will not work for you if you have a fair to bad numerical value. However, there are still some good ones that even people with great numbers use! (Remember that if you have any late payments on your line, it can cause your number to drop even further.) We have done our research and put together this list of great options for you to choose from. Three great options are:
- Discover it;
- Capital One Secured Mastercard; and
- Petal 1 Visa.
This is likely the best option for you if your credit score is in the 600 range because it was designed with people struggling financially in mind. First, it has no annual fee. Therefore, you are saving money fresh out of the gates! Discover, the generous entity that created this card, also promises to match all of the cashback you earn during your first year! And, you can get anywhere from 1-5% cashback easily on buys.
Capital One Secured Mastercard
A huge perk of the Capital One Secured Mastercard is that you can find out whether you are pre-approved for it before actually applying. This means that it will not reduce your credit score to see if you’re eligible for the program—a huge perk for people in your position. It also has a $0 annual fee, and its late payment fees only go up to $40, which is less than many other cards.
Petal 1 Visa
Petal 1 Visa was designed without having to consider your score at all. Its limit is vast, ranging from $500-$5,000, so it can suit a wide array of borrowing needs. It provides you with 1-2% cashback for all of your purchases at specific merchants. There are also no annual fees—just late and returned payment fees. It doesn’t even have international charges! In addition to being a great option for low-credit consumers in general, this is also a great option for young people who are just starting out in their economic journey.
While some of the above options may sound unfamiliar to you, you’ve likely seen your friends and family using the others. If you do a good job paying what you owe when it is due, then this is actually an excellent method of building credit!
Car Loan Rates for a 600 Credit Score
In the process of trying to get a 600 credit score car loan? You are not alone. The vast majority of the population actually sits in this bracket. However, thanks to poor American public transportation, owning a motor vehicle is a necessity in most U.S. areas. You will face some obstacles in this feat. For example, a car loan interest rate with a 600 credit score is likely going to be higher than normal. This is due to the fact that you are considered not as trustworthy as an applicant with a higher number.
Still, if you are willing to pay a bit more, you will be able to get your hands on a reliable vehicle. With a spectacular score, you would likely be paying somewhere between 3-4% in interest. If you are in the 500s to 700s though, this skyrockets up to anywhere between 6% to 11%, and can even hit 14.66% depending on who you are working with.
|Deep Subprime (300 to 500)||14.66%|
|Subprime (501 to 600)||10.81%|
|Non-prime (601 to 660)||6.64%|
|Prime (661 to 780)||3.54%|
|Super Prime (781 to 850)||2.41%|
If you can wait on getting a car until your credit report is better, it is recommended that you do that. Otherwise, do your research and make sure you are working with an institution that is giving you the lowest possible interest rate.
Personal Loan with a 600 Credit Score
Getting a personal loan with a 600 credit score is going to be harder than a card, but easier than a vehicle or property loan. Just make sure that what you are asking for is reasonable. As long as the sum is a four-digit number, you should not have too much trouble regardless of where you are seeking the funding from. The lowest interest rate for a 600 credit score you should probably expect to pay is around 6%, and even this is rare.
If an organization is trying to get you to pay anything above 10% for a small loan, tell them that you have done your research and know that that is a bad deal given your credit history. On rare occasions, organizations do barter with customers and will offer you a lower price if you prove that someone else already has.
|Loan Size||Lower End||Higher End|
|Small personal loan||5.94%||10.50%|
|Medium personal loan||10.51%||19.99%|
|Large personal loan||20%||35%|
Credit: Numbers taken from Credible.
Home Loan with a 600 Credit Score
Interested in getting a mortgage or home loan with a 600 credit score? While it may be challenging, it is definitely possible. If this is your current situation, again—you are going to have to choose between waiting until you are in better financial standing or paying more in interest. This is probably the hardest line to obtain if you do not have a great borrowing history.
There are a few different programs you can seek out, ranging from FHA to mortgages and conventional programs. After you choose which is best for you, take a look at typical rates for them. You should look for anything between 0.81% and 4% annually. Anything more than this, and you are not getting the best price! And if you have a 600 credit score and want to buy a house, you are going to need the best deal possible. These rates are a bit lower than the other categories given the long period of time that you will likely be paying them for.
How to Improve Your Credit
Wondering, “will I get approved for a car loan with a 600 credit score?” As discussed, the answer is likely yes. Still, you can increase your chances of doing it for cheaper by following the steps detailed below to bump your numerical value.
Dispute Any Potential Mistakes
If, while reviewing your profile, account, reports, and documents, you believe that you have found a mistake, then you can take action! All you have to do is send the credit bureaus a letter containing the following information:
- Your contact and account information;
- The line items you believe are incorrect; and
- EVIDENCE that proves the error is genuine and the fault of the bureau.
After you send in your challenge, it can take up to 30 days to hear back about whether or not it was successful. Remember that you can only challenge lines that are actually inaccurate. For example, if you know you paid something off, but it is still appearing in your account as late, you can challenge this. However, if you really missed a payment, you cannot get it taken off of your account through a dispute.
In the case that you missed something owed and it was your fault though, as long as you have a decent payment history, you can try calling up your financial institution and asking for one-time forgiveness.
Close What You Can’t Afford, and Start Paying Everything on Time!
Before trying to pick from the pool of your local credit union or bank, take a deep dive through your economic behaviors. Often, you will find that you do not have your ducks in a row. It is best to first fix all of your bad money habits and increase your FICO score before trying to borrow anything more. While it can help your numerical value to have multiple lines open, it can do more harm to have multiple lines if you are not paying on time.
Cancel any lines that you cannot afford given your current income or lifestyle. If you have outstanding debts, bunker down for a few months and do some heavy-duty saving. Then, pay them all off. Yes—all of them. Another nice trick is to stop carrying cards around with you. Save them for automatic bill paying, that way you never overspend and never forget to send in your dues.
Hire a Professional
Do terms like credit utilization rate and APR make your head spin? You are not alone in this experience. That is why there are people who can help you boost your score or obtain the financing you need for a living! These entities include but are not limited to places like Lexington Law, Sky Blue Credit, and The Credit People. For more detailed information, check out our list of credit repair companies you can trust!
Whether you need short-term help or someone to hold your hand for years, you will surely find someone you can afford and that meets your needs in our recommendations. We have done all of the necessary research so that you don’t have to! Plus, thanks to new American laws, no entity can advertise things that they actually cannot do for you! Thus, if they say they can help you, then they really can!
Obtain Necessary Financing Today!
Reading the above article answered many of your looming questions, such as, “how bad is a 600 credit score?” and “where can you get a loan with a 600 credit score?” If you still have pending questions about your current economic status but are sick of doing research, you are not out of luck! There are professionals out there who help people like you for a living. No matter how bad you feel your current reality is, there is an organization out there that can help you climb out of your hole. Just have faith that there’s a method for how to fix a 600 credit score! And in the meantime, you can make whatever your numerical value is work for you.