Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future. Some lenders dislike those odds and choose not to work with individuals whose FICO Scores fall within this range. A 658 credit score may not suffice for many lenders.
Lenders focused on “subprime” borrowers, on the other hand, may seek out consumers with scores in the Fair range. However, they typically charge high fees and steep interest rates. Consumers with FICO Scores in a good range or higher are generally offered significantly better borrowing terms.
How to Improve your 658 Credit Score
The average FICO Score is 675 somewhat higher than your score of 658, which means you have got a great opportunity to improve. 70% of US consumers FICO Scores are higher than 658. What’s more, your score of 658 is very close to the good credit score range of 670-739. With some work, you may be able to reach that score range. This could mean access to a greater range of credit score and loans, at better interest rates.
The best approach to improving your credit score starts with a check of your FICO score. The report that is delivered with the score will use details from your unique credit report to suggest ways you can increase your score. If you focus on the issues spelled out in a report and adopt habits that promote good credit scores, you may see steady score improvements, and the broader access to credit score that often comes with them.
Moving Past a Fair Credit Score
While everyone with a FICO score of 658 gets there by his or her unique path, people with scores in the fair range often have experienced credit management challenges. Credit score reports of individuals with fair credit scores in a fair range often list late payments and collections accounts. This indicate a creditor has given up trying to recover an unpaid debt and sold the obligation to a third-party collection’s agent. Some people with FICO scores in a fair category may even have major negative events on their credit reports, such as foreclosures or bankruptcies – events that severely lower scores.
Full recovery from these setbacks can take up to 10 years, but you can take steps now to get your score moving in a right direction. Studying the report that accompanies your FICO score can help you identify the events that lowered your score. If you correct the behaviours that led to those events, work steadily to improve your credit, you can lay the groundwork to build up a better credit score.
