Is 607 A Bad Credit Score? Can I Get An Auto Loan? Home?
If you’ve fallen behind on a few bills, odds are your credit’s taken a beating. FICO, a data analytics company, determines credit scores, classifies a 607 credit score as being “poor".
This lackluster score can be the direct result of accumulating late payments over time.
So, is 607 a bad credit score? While worse ratings exist, it’s by no means close to the 700-plus target score most people should aim to have. And it could be impacting your life right now and in the near future.
Related: How To Buy A House With Bad Credit?
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How Can a 607 Credit Score Affect My Financial Future?
Having a less-than-stellar credit score can impact your life in more ways than one. Even if you don’t want to be a homeowner, a poor credit score can affect your utility costs, renting options, and more. Here are some of the headaches a 607 credit score can cause:
Applications for Credit Lines and Loans Not Getting Approved
Scores in the low 600s can hamper your odds of getting approved for new credit lines and loans. To better your chances of being approved, ask a friend or family member to co-sign the application.
Your Job Application is in Jeopardy
Not all jobs take a peek at your credit score, but there’s no denying that some do. Job recruiters who work in upper management or the finance industry usually need applicants to have a good credit history. Those who don’t may get turned down entirely based on their lackluster credit score.
You Might Have Trouble Getting a Phone Contract
A 607 credit score can make it hard to secure a phone contract, with or without a deposit. And even if you can get your hands on a new phone contract, financing the device you want might not be an option.
You’ll Have to Put Down a Hefty Security Deposit for Credit Cards
Having a 607 means you could pay a hundred of dollars toward a security deposit for new credit cards. Worse off, security deposits won’t go toward any account balances. But, when you do decide to close the credit card, you’ll get your deposit back.
How Can I Improve My 607 Credit Score?
Thankfully, you’re not stuck with your low 600 credit score forever. Doing a few critical steps can significantly improve your score over time.
Take a Good Look Your Credit Score and Report
It’s worth giving your credit report a good look over. Look to make sure past paid debts are removed. If they aren’t, get in touch with the credit agency or financial institution to have them removed. It’s also a great idea to use the report to see just how your spending habits affect your credit score.
Put All Those Bills on Autopay
One of the easiest ways to increase your credit score is to pay your bills on time. Choosing to set up all your bills on “autopay” will make sure you never miss a payment. No more late payment fees and a growing credit score sounds like a win-win to me.
Keep Your Credit Cards, But Pay Them Off
Having a substantial line of available credit line will help raise your credit score. Pay off as much as you can on your credit cards to get your available credit balance up, but don’t cancel those cards. Keeping your credit balance low and credit line high is crucial to a good credit score.
Take a Deep Breath and Plan for the Future
Dealing with your credit shortcomings can be a daunting task. But the sooner you do it, the better off you’ll be in the long run.
So, start taking those above-mentioned credit-building steps and prepare for the bright financial future ahead of you. Your savings accounts and interest rates will thank you for it.