Is your credit score stuck at 650? Well, there are a few things we can assume about this stagnation. Within those reasons, we can see where you need to act to get out that rut. 

3 Reasons Your Credit Score Is Stuck At 650

1. Your Credit Utilization Is Too High 

When you have revolving credit accounts, lenders want to see that you handle them responsibly. 

High utilization of credit makes you seem like a risk, which lowers your credit score or keeps it stagnate.

Credit Utilization accounts for 30% of your credit score. 

If your credit-to-debt ratio is 30 percent or higher, your utilization is too high. For a serious change, you should aim for 10 percent.

Using around 10% or less of your available credit is ideal.

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2. Your Credit History Includes a Negative Items

If everything is ideal with your finances at the moment, a low or stagnant credit score could be due to a major negative factor in your credit history. 

Foreclosures, defaults, and bankruptcies drive your credit score down and remain on your record for years.

The good news is that most of these negative items fall off your report after a maximum number of years, often seven. 

In the meantime, keep making timely payments and managing money in a positive way, and eventually, you’re left with a strong financial situation likely to create a higher credit score quickly.

In the meantime, you can receive financial and legal advice to repair your credit.

3. Your Credit History Isn’t Diversified Enough

Credit Mix makes up another 10% of your credit report. Types of credit include:

  • Installment accounts, such as car loans, home mortgages, student loans, and personal loans
  • Revolving accounts, including all types of credit cards, home equity lines of credit and gas cards
  • Open accounts, such as those with the utility of natural gas companies

Even if the accounts on your credit report are closed or no longer in use, they still count toward whether your credit history is diversified. 

If the only accounts on your credit report are revolving accounts, for example, your credit history is not diversified and your score may suffer as a result.

4. Your Credit Report Has Errors

One easy step to fixing your credit is simply ensuring there aren’t any errors in your credit report. 

If you make your car payment religiously but it’s reported late on your credit report, the bank may have made an administrative error. 

Contact them for assistance and report the error to all three major credit bureaus.

But don’t overlook other types of errors that aren’t related to payment history. 

Decimal in the wrong place can change the entire story about how much debt you owe, and a misspelled name or incorrect social security number can cause other people’s debts or credit histories to show up on your record.

Ensuring small errors and typos don’t impact your credit score is one reason you should monitor it regularly and consider working with professionals to initiate credit disputes as needed.

Get Consultation From These Credit Repair Companies 

Lexington Law or Call For Free Consultation Now: (833) 838-5600

Ovation or Call For Free Consultation Now(855) 634-7274 or Call For Free Consultation Now: (833) 840-9600

Why Does Your Credit Score Stay the Same or Go Down?

A lot of factors can cause negative impacts on your credit score, including: 

  • Age of your accounts
  • Your credit utilization
  • Your payment history
  • Errors 

Call to get your free consultation from one of these companies, and a credit report card that breaks down how you’re doing in the five key areas that affect your credit – payment history, credit utilization, credit age, account mix, and inquiries. 

James Willaims

Hey There, James here. I am the co-founder and editor of this site. I have over 10 years experience in business and 5 in the credit repair world

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