How bad is 600 FICO score?

by Bob
I’ve recently learnt that my FICO score is 600. It sounds pretty good to me, but my friends say that it’s a bad score and I don’t stand a chance securing an auto loan I intend to apply for in 3 months.

Is it a fair assumption to expect to be granted? What can I do to raise it in the next 3 months?

Any advice is appreciated.

BOB

Don’t get your hopes too high

by: Anat
Bob,

The following describes what you can expect with respect to your loan:

  • 760 – 849
    The lender will generally offer you their best interest rate.
  • 700 – 759
    There won’t be any trouble in getting a loan at good interest rate.
  • 660 – 699
    There really shouldn’t be any problem in getting a loan at good interest rate.
  • 620 – 659
    Although you may qualify for the loan but not at good interest rates.
  • 580 – 619
    Sadly this is a poor score. And although you may qualify but the interest rates will be very high if you take out a loan.
  • 500 – 579
    It’s doubtful that you may qualify for the loan, and if you qualify, the interest rates will be extremely high.

As you can see, you don’t stand a good chance of being approved, and even if you will – you will pay high interest rates.

You should take steps to improve your credit score, be be aware that it takes A LOT of time.

A credit score is based on a 12 month activity and usually goes up between 5 to 10 per month. A good score is between 660-749. It will probably take you 12 months of activity to get to this level.


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Pretty low :-(

by: Tracy
A 600 FICO score is pretty low.the average FICO score is roughly between 650-725.

With a 600 FICO score you are subjected to higher interest rates because you are viewed as a credit risk.


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Very!

by: Jane
FICO scores range from 300 to 850. A score of 600 is not good at all. The median score in 2010 was 723 which means 600 is in the lower 50% of scores.

With a FICO score of 600 you are in a risk of being in the subprime group which would make you ineligible for most loans including FHA loans which are given to risky borrowers.


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