How bad is 600 FICO score?

[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

[Anat]

Don’t get your hopes too high

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.

[Author]

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