Having a credit score of 650 can make getting approved for loans more challenging, but certainly not impossible While 650 is considered a fair credit score, it still allows you to qualify for certain loans and lines of credit. However, interest rates and terms may not be as favorable compared to borrowers with higher scores This article will explore the loan options available with a 650 credit score and provide tips on how you can improve it.
What is a 650 Credit Score Considered?
Before looking at the different loans available, it helps to understand where a 650 credit score stands. The FICO scoring model, used by 90% of lenders, ranks credit scores from 300 to 850.
- A 650 falls into the fair credit range, which is 580 to 669.
- It’s below the national average credit score of around 690.
- A 650 is not poor but it’s also not considered good credit.
So a credit score of 650 leaves room for improvement but still meets many lenders’ minimum requirements. While interest rates won’t be the lowest, a 650 score shows you still have an ability to repay debts responsibly.
How a 650 Credit Score Affects Loan Options
In general, the higher your credit score, the more likely lenders will view you as a low-risk borrower and offer better terms. Applicants with scores of 650 can expect:
- Higher interest rates compared to those with good or excellent credit.
- More stringent requirements like larger down payments.
- Shorter repayment terms to minimize risk.
However a 650 score meets the minimum threshold for government-backed loans like FHA VA, and USDA mortgages. You can also qualify for conventional loans but may need to provide additional financial documentation.
Mortgage Loans
For a 30-year fixed mortgage, applicants with credit scores from 640 to 659 can expect an average interest rate around 4% based on national averages. This compares to 3.4% for scores from 660 to 679, and 2.9% for scores above 760.
You’ll most likely be offered an adjustable-rate mortgage (ARM) with a 650 score, where the rate fluctuates after an introductory period. This involves more risk than a fixed rate.
Tips for improving mortgage loan terms:
- Shop multiple lenders for the best rates
- Opt for a 15-year mortgage term over 30 years
- Make a down payment over 20% to avoid private mortgage insurance (PMI)
Auto Loans
Since cars serve as collateral for auto loans, lenders take on less risk and may offer more flexibility. A 650 credit score meets many lenders’ requirements for approval but you’ll likely pay a higher interest rate.
The average new car loan rate for applicants with scores between 640-659 is 5.4% compared to 4% for scores above 760. Used car loans average around 8% interest for 650 scores.
Tips for better auto loan terms:
- Comparison shop rates across lenders
- Consider a shorter loan term (3 years instead of 5)
- Make a larger down payment if possible
Personal Loans
Personal loans allow you to borrow for any purpose, from consolidating high-interest debt to financing home improvements. Interest rates are driven by creditworthiness, so applicants with 650 scores will face higher rates.
Lenders may charge origination fees up to 8% of the loan amount. A 650 score makes you more likely to get a secured loan requiring collateral. Average rates for a 3-year $10,000 personal loan include:
- 650 score: 10% APR
- 680 score: 6% APR
- 740+ score: 3% APR
Tips for improving personal loan terms:
- Shop lenders to avoid origination fees if possible
- Opt for a shorter 12-24 month term over 3-5 years
- Provide proof of steady income to lower risk
Credit Cards
You can still get approved for credit cards with a 650 credit score but your options will be limited compared to those with higher scores. Expect high APRs, low credit limits, and little to no rewards.
Apply for cards meant for applicants working to build or rebuild credit, like secured cards that require a deposit. Making payments on time helps boost your score over time.
How to Improve Your 650 Credit Score
Here are some steps to take over 6-12 months that can increase your credit score and make you eligible for better loan terms:
- Pay all bills on time including utilities – the biggest factor in credit scores.
- Pay down balances below 30% of credit limits, focusing on cards with high utilization first.
- Avoid new credit card or loan applications during the improvement period.
- Correct any errors on your credit reports by disputing inaccurate information.
- Become an authorized user on someone else’s credit card account in good standing.
Checking your credit reports and FICO scores frequently lets you gauge progress. Shopping lenders and loans armed with an improved score of 680+ can save thousands in interest costs over the lifetime of a mortgage or auto loan.
The Bottom Line
A credit score of 650 allows you to qualify for loans but likely with higher interest rates and stricter requirements compared to applicants with good credit. Mortgages, auto loans, personal loans, and credit cards remain accessible options.
Focus on making timely payments, limiting balances, and avoiding new debts in the short term. You can boost your score and open the door to better loan terms fairly quickly. Monitoring your credit gives you the information needed to shop lenders smartly.
It can be hard to qualify for good financial products with bad credit; some lenders can help.Updated Fri, Jun 13 2025
If your credit score is less than ideal, you may feel like you face additional challenges when it comes to accessing good financial products, like the best credit cards or the best personal loans. However, there are a few lenders that actually cater to applicants with lower credit scores in the poor/fair range (669 and below for the FICO® Score model, and 660 and below for the VantageScore® model) to help them borrow money for emergency expenses, a medical bill, debt consolidation and other financing needs.
Below, CNBC Select rounded up five of the best personal loan lenders that still accept applicants who have credit scores below 670. We looked at fees, interest rates and flexible repayment options for different credit scores. (You can read more about our methodology below.)
In the meantime, remember that if you are applying for loans — or any line of credit — with a lower credit score, you are likely to receive higher interest rates because lenders will see you as more of a “riskier” borrower. Its important to compare rates with different lenders and do your homework before signing on the dotted line to make sure youre comfortable with your new loan terms.
Best personal loan lenders for a credit score below 670
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Annual Percentage Rate (APR)
7.8% – 35.99%
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Loan purpose
Debt consolidation, credit card refinancing, wedding, moving or medical
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Loan amounts
$1,000 to $50,000
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Terms
36 and 60 months
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Credit needed
Credit score of 300 on at least one credit report (but will accept applicants whose credit history is so insufficient they dont have a credit score)
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Origination fee
0% to 12% of the target amount
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Early payoff penalty
None
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Late fee
The greater of 5% of last amount due or $15, whichever is greater
- Open to borrowers with fair credit (minimum 300 score)
- Will accept applicants who have insufficient credit history and dont have a credit score
- No early payoff fees
- 99% of personal loan funds are sent the next business day after completing required paperwork before 5 p.m. Monday through Friday
- High late fees
- Origination fee of 0% to 10% of the target amount (automatically withheld from the loan before its delivered to you)
- $10 fee to request paper copies of loan agreement (no fee for eSigned virtual copies)
- Must have a Social Security number
Whos this for? Sometimes, a potential borrower may have a low credit score because they have extremely limited credit activity. Other times, a lack of credit history may result in them having no credit score at all. Because of this,Upstart accepts applicants with no credit history — though this lender also looks at applicants with a FICO score of 300 or higher. Just keep in mind that if you are approved for the loan with a lower (or no) credit score, you may be subject to a higher interest rate.
You can apply for loan amounts as low as $1,000 and as much as $50,000. And while there are no penalties for paying off your balance early, Upstart does charge an origination fee (up to 12% of the amount you borrow) and late fees ($15 or 5% of the past due balance, whichever is greater).
When it comes to repaying the balance, loan terms range from 36 to 60 months, which can be appealing to borrowers who think they may need a longer time horizon to repay the entire loan.
How Much of a Home Loan Can I Get with a 650 Credit Score
FAQ
What credit score do I need for a $5000 loan?
Can I get a $15,000 personal loan with a 650 credit score?
Qualification Requirements for a $15,000 Personal Loan
You will likely need a credit score of at least 660 for a $15,000 personal loan. However, many lenders don’t state a minimum required credit score because they will vary the terms for each borrower depending on their credit history.
What credit score is needed to buy a $300K house?
What credit score is needed for a $1000 personal loan?
What Credit Score Is Needed For A Personal Loan? Most lenders require a minimum credit score between 640 and 650. However, some borrowers may be able to qualify for a higher-interest-rate personal loan if they have a lower score.