Although you are typically regarded as a subprime consumer if your credit score is 639, this won’t always stop you from taking out loans. As of 2021, the average FICO credit score in the US is 714; scores between 580 and 669 are regarded as “fair” credit scores.
This post will explain what your 639 credit score indicates, whether you can get a particular kind of loan, and what you can do to raise your credit score.
No, a 639 FICO score is not considered good. It falls within the range of scores, from 580 to 669, considered Fair. This means that some lenders may see you as a risky borrower, and you may have difficulty getting approved for loans or credit cards with favorable terms
What Does a 639 FICO Score Mean?
A 639 FICO score indicates that you have a fair credit history but there are some areas where you could improve. This could include things like having a limited credit history a few late payments, or a high credit utilization ratio.
What Can You Do to Improve Your 639 FICO Score?
There are several things you can do to improve your 639 FICO score:
- Pay your bills on time. This is the most important factor in your credit score. Even one late payment can have a negative impact.
- Keep your credit utilization low. This is the amount of credit you are using compared to your total credit limit. Aim to keep your credit utilization below 30%.
- Become an authorized user on a credit card with good credit. This can help you build your credit history without having to open a new account.
- Dispute any errors on your credit report. This can help remove negative information that is dragging down your score.
What Can You Get with a 639 FICO Score?
You might still be able to get approved for some credit types even with a 639 FICO score. Here are a few options:
- Secured credit cards: These cards require a security deposit, which reduces the risk for the lender.
- Unsecured credit cards: These cards do not require a security deposit, but they may have higher interest rates and fees.
- Personal loans: You may be able to get approved for a personal loan with a high interest rate.
- Auto loans: You may be able to get approved for an auto loan with a high interest rate.
What Should You Do If You Have a 639 FICO Score?
The best course of action if your FICO score is 639 is to work on raising it. This will help you save money on interest and fees and provide you with more credit options down the road.
Additional Resources
- Credit Karma: https://www.creditkarma.com/credit-scores/639
- WalletHub: https://wallethub.com/credit-score-range/639-credit-score
Frequently Asked Questions
Q: What is a good FICO score?
A: A good FICO score is considered to be 670 or higher.
Q: How can I check my FICO score?
A: Credit Karma and WalletHub offer free FICO score checks.
Q: How long does it take to improve my FICO score?
A: It can take several months or even years to improve your FICO score. However, even small improvements can make a big difference.
Q: What is the difference between a FICO score and a credit score?
A: A FICO score is a type of credit score that is used by many lenders. There are other types of credit scores, but FICO scores are the most commonly used.
A 639 FICO score is not considered good, but it is not the end of the world. There are several things you can do to improve your score and get access to better credit options. By following the tips above, you can start working towards a better credit future.
Can I get a mortgage with an 639 credit score?
Yes, your 639 credit score can qualify you for a mortgage. And you have a couple of main options.
If your credit score is 580 or higher, you can get an FHA loan with just a 3 percent down payment to purchase a home. 5%. Although these Federal Housing Administration-guaranteed loans have drawbacks (like the need for FHA mortgage insurance), they can be a fantastic choice for people who wish to buy a home.
To get a conventional mortgage, the minimum credit score requirement is 620 per Fannie Mae’s lending standards. However, a credit score on the lower end of the spectrum comes with certain caveats. For instance, in order to obtain a conventional loan with a percentage of 20620, you will need to have a maximum debt-to-income ratio of 2036% and be ready to make a down payment of 2025%. You can obtain a conventional loan with as little as 5% down payment (or even 3% in certain cases), but the minimum credit score needed to qualify for this loan is 660 based on the most recent Fannie Mae underwriting guidelines.
Can I get a personal loan with an 639 credit score?
A good credit score is necessary to get the best rates from lenders on a personal loan, but a score of 639 on your FICO should get you approved. This is particularly true for personal lending platforms like Upstart, which focus on providing loans to borrowers with imperfect credit histories.
It’s also important to emphasize that your credit score is only one component of loan approval. You’ll also need income to justify the loan, as well as an acceptable level of indebtedness. In actuality, borrowers with excellent credit frequently have their loan applications denied if they have an excessive amount of outstanding debt.