Is 630 a good credit score? Truth is a 630 credit score is in the fair range. With that being said, know that you may have to pay higher rates on loans, credit cards, and others. Continue reading to learn more about a 630 credit score.
Is 630 A Good Credit Score
A 630 credit score just as mentioned already is considered a fair credit score. Your credit score as you should know helps to determine whether you will qualify for products such as credit cards and loans, and what type of interest rate you will be charged by a lender in the industry.
The share of Americans on the other hand that had scores between 600 and 649 was 9% in 2019, as per FICO, the credit scoring company.
How Can a 630 Credit Score Affect Your Financial Life
Just as mentioned already, it may affect your interest rates, credit cards, and others. In this section, I will however be focusing more on paying higher rates than others with a credit score of 630. As someone with a 630 credit score, you should know that you have just crossed over into the “fair” territory of credit score bands. Of course, you can always qualify for financial products, such as a mortgage or even a car loan, but you will very much likely pay higher interest rates than someone with better credit in question.
And in a bid to keep your score from falling back into the bad range, you should do well to continue practicing good credit habits to beef up your score.
Special Tips to Work on Your 360 Credit Score
In order to beef up your 630 credit score, there are a couple of practices that you can start picking up and they are;
- You should consider applying for a secure credit card and this very type of credit card as you should know is always backed by cash deposit.
- You should get a credit-builder loan or a secured loan directly from a credit union. What does a credit builder do? Well, it is simple. A credit builder loan lets you to build your score and then put away money for a goal at the same time.
- If however you know a family member or a friend with a high credit score as well as a long credit history, you can easily ask them to add you as an authorized user on their credit card.
- You should continue to practice good credit habits. Do well to pay all your bills on time and then make use of no more than 30% of the credit limit on all of your credit cards as the lower is always the better in this case. Those that I just mentioned are the two biggest factors that are affecting your credit score. You also can open a new credit card account in a bid to increase your available credit and then lower your usage ratio, but you should make sure to conduct research just before you apply.
That’s it. When you follow up with the practices mentioned in this post, your 630 credit score will reportedly be on the up.
MORE RELATED POSTS
