What does a 604 credit score mean?
Based on the FICO® scoring model, a 604 credit score puts you in the “fair” credit range. Even though this score isn’t great, it doesn’t always mean you’ll never succeed financially. It just means that you still need to put in some effort to strengthen your credit history.
Is a 604 credit score good or bad?
Compared to the average U.S. credit score of 714, a 604 falls short. However, it’s not the end of the world. Many lenders still consider borrowers with fair credit scores, albeit at higher interest rates and stricter terms.
What can you do to improve your 604 credit score?
Don’t despair! There are several steps you can take to boost your credit score:
- Pay your bills on time: This is the single most important factor in your credit score. Even a single late payment can significantly impact your score.
- Keep your credit utilization low: Aim to use no more than 30% of your available credit limit. The lower, the better.
- Become an authorized user on a responsible credit card: This allows you to benefit from the positive credit history of the primary cardholder.
- Dispute any errors on your credit report: Mistakes happen, and they can negatively impact your score. Regularly check your credit report for inaccuracies and dispute them with the credit bureaus.
- Consider a secured credit card: This type of card requires a security deposit, but it can help you build credit history if used responsibly.
What are the benefits of a higher credit score?
Improving your credit score can unlock a world of financial benefits:
- Lower interest rates on loans and credit cards: This can save you thousands of dollars over the life of your loans.
- Access to better credit card rewards: Higher credit scores often qualify you for cards with better rewards programs.
- Improved chances of getting approved for loans and mortgages: A good credit score makes you a more attractive borrower to lenders.
- Lower insurance premiums: Some insurance companies offer discounts to policyholders with good credit.
Remember, building a good credit score takes time and effort. But by following these tips, you can steadily improve your creditworthiness and unlock a brighter financial future.
Additional Resources:
- Experian: https://www.experian.com/blogs/ask-experian/credit-education/score-basics/604-credit-score/
- Credit Karma: https://www.creditkarma.com/credit-scores/604
FAQs:
Q: What is a good credit score?
A: A good credit score is generally considered to be 700 or above.
Q: How long does it take to improve my credit score?
A: It can take several months or even years to improve your credit score significantly. However, even small improvements can make a big difference.
Q: I have a 604 credit score. Can I still get a loan?
A: Yes, you can still get a loan with a 604 credit score. However, you may have to pay higher interest rates and fees.
Q: What is the best way to improve my credit score?
A: The best way to improve your credit score is to pay your bills on time, keep your credit utilization low, and dispute any errors on your credit report.
Popular Credit Cards for a 604 Credit Score
- Get Tailored Advice From WalletHub: Examining the Credit Analysis page of your complimentary WalletHub account is the best way to raise your 604 credit score. This will help you identify the issues and provide solutions. Improving your credit utilization and paying your bills on time each month should be top priorities if, for example, your grades are comparable to those of the typical person with a 600 credit score.
- Enhance Your Credit Utilization: Your credit utilization, or how the monthly balances on your credit card statements compare to the credit limits on those accounts, can be enhanced in four ways. To reduce the balances on your statements, you can cut back on spending, increase your payments, or pay your bills more than once a month. Additionally, you can ask for higher credit limits, but controlling that will be more difficult.
- Use a Secured Credit Card Responsibly: Making a down payment on a secured credit card is the most dependable way to start the process of repairing bad credit. The deposit lessens the risk to the issuer, enabling approval regardless of how low your score may be. Then, just maintaining the integrity of your account will cause positive information to be added to your credit report each month. If you are denied a credit card for people with fair credit, you should apply for a secured card instead. Rejections on a regular basis will lead to several hard inquiries on your credit report, which will make the process of rebuilding your credit more difficult.
- Pay All of Your Bills by the Due Date: Your credit score is largely influenced by your payment history, which you can directly influence. For this reason, making on-time payments is crucial. The best course of action is to have bank account payments made automatically each month. If nothing else, this will prevent your score from suffering from simply losing track of time.
- Watch Your Credit Report Regardless of your credit score, it’s a good idea to routinely check your credit report for inaccuracies and dispute any that you come across. You can protect yourself and your credit score by doing that and registering for a free, round-the-clock credit monitoring service.
What Does a 604 Credit Score Get You?
| Type of Credit | Do You Qualify? |
| Secured Credit Card | YES |
| Unsecured Credit Card | YES |
| Home Loan | YES (FHA Loan) |
| Personal Loan | MAYBE |
| Auto Loan | MAYBE |
Note: In certain situations, you might be able to qualify for a personal loan or auto loan, but the terms probably won’t be very favorable. If you apply for the average offer, you’re more likely to be rejected than approved.
This content is not provided or commissioned by any issuer. The views expressed here are solely the author’s and have not been examined, approved, or otherwise supported by the issuer.