Is 640 a good credit score? A 640 credit score as you already should know is generally a fair score. And while many people have fair scores, you however may still get to find it really hard to get approved for credit without any form of high fees and interest rates with a score recorded in this very range.
Is 640 A Good Credit Score
Credit scores for those people that do not know are numbers that lenders use to help decide just how risky you might be to lend to. Higher scores in this regard signal to lenders that you may be very much more likely to pay back any money you get to borrow. And even though a fair credit score can be relatively middle-of-the-road, having fair credit can make it really tough to qualify for certain loans as well as credit cards. You just may find that you will be needing to pay more in fees or agree to higher interest rates in a bid to access these and other forms of credit products.
But how can you tell as to exactly how good your credit is? Well, it is a tad bit complicated. For beginners, you really do not have just one single credit score. It’s much more likely that you have many different credit scores that are generated by many different credit-scoring models.
The most widely and recognized credit scores, such as those that are developed by FICO and VantageScore, usually fall in the 300 to 850 range. But some scores on the other hand make use of different ranges. Credit-scoring models hugely rely on a variety of factors in order to calculate your scores, drawing on credit-report data from the three main consumer credit bureaus in the industry.
How to Build Your 640 Credit Score
The best and most effective way to build your credit from fair to good and even beyond depends solely on your specific credit profile. But even at that, there are some really overall healthy habits that you can practice. And with that being said, here are some tips to help you address the factors that can directly affect your credit.
Check On Your Credit Reports and Dispute and Inaccuracies
A good way to begin building good credit is by checking on your credit reports. It seems quite simple, but reviewing your reports regularly can help you to identify any errors that could be affecting your credit negatively. Checking on your reports at most times can also help you to spot signs of identity theft just before they wreak havoc on your credit.
If it is that you do find errors or suspicious discrepancies on your reports, disputing them could easily help you to get them removed and improve your scores ultimately.
Diversify Your Credit Mix
Showing lenders in the industry that you have experience in regard to managing a mix of different types of credit can also help the health of your credit. Your various accounts in question may just include a revolving credit line (such as a credit card) or an installment loan that you get to pay back over time.
We really do not recommend applying for new loans in a bid to build credit. Not only can that debt in question really be expensive, but the application may get to result in a hard inquiry if the lender checks your credit reports while they are deciding on whether to lend to you. Hard inquiries as you should know are reflected on your reports and can easily affect your scores, especially in the event that you rack up a bunch of them in a short period of time.
Give It Time
The age of your credit history or just how long it is that your current credit accounts have been open is yet another factor that may swing your credit needle. It is really one key reason why you should think long and hard just before canceling any credit cards. And closing an old or sparingly used credit card account may just seem like good financial hygiene, but it really could cut down the average age of your credit history and then affect your scores negatively.
You will want to balance the decision in regards to closing an old, unused account with the negative impact that it could have on the age of your credit history, as well as your credit utilization rate in the long run.
MORE RELATED POSTS
