In the credit score range of 300 to 850, a score of 700 or higher is typically regarded as good.
In the credit score range of 300 to 850, a score of 700 or higher is typically regarded as good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2022, the average FICO® Score☉ in the U. S. reached 714.
You may be able to get a credit card or loan with better terms and a lower interest rate if you have a high credit score. That said, different lenders use their own criteria for deciding whom to lend to and at what rates. Here are some additional details about what makes a good credit score, what affects credit, and how to raise credit.
What does a 637 credit score mean?
A 637 credit score falls within the “fair” range, according to both Credit Karma and Upstart This means you’re not exactly a prime borrower, but you’re also not considered high-risk
What can you expect with a 637 credit score?
- Higher interest rates: Lenders view you as a riskier borrower, so you’ll likely face higher interest rates on loans and credit cards.
- Limited loan options: You might not qualify for the best loan terms or even be approved for certain loans at all.
- Higher security deposits: Some lenders might require higher security deposits for things like utilities or apartments.
How can you improve your 637 credit score?
- Pay your bills on time: This is the most important factor in your credit score. Aim to pay all your bills in full and on time every month.
- Keep your credit utilization low: This means using less than 30% of your available credit limit. Aim to pay off your credit card balance in full each month.
- Become an authorized user on a responsible credit card: This can help you build your credit history without having to open a new account.
- Dispute any errors on your credit report: Check your credit reports regularly for any errors and dispute them with the credit bureaus.
- Consider a secured credit card: This is a good option if you have bad credit or no credit history. You’ll need to make a security deposit, but this can help you build your credit over time.
What are some resources to help you improve your credit score?
- Credit Karma: Offers free credit scores and reports, as well as personalized tips on how to improve your credit.
- Upstart: Offers personal loans to borrowers with fair credit, and considers factors beyond just your credit score.
- AnnualCreditReport.com: Provides free credit reports from all three major credit bureaus once a year.
- Federal Trade Commission (FTC): Offers resources on credit reports, credit scores, and identity theft.
Remember, it takes time to build good credit. With time and perseverance, you should see an improvement in your credit score.
Additional tips:
- Avoid opening new credit accounts too often: This can hurt your credit score.
- Don’t close old credit accounts: This can help your credit history.
- Be mindful of your credit mix: Having a variety of credit accounts, such as a credit card and a loan, can help your credit score.
- Monitor your credit score regularly: This will help you track your progress and identify any potential problems.
- Seek professional help if needed: There are credit counselors who can help you develop a plan to improve your credit score.
You can raise your credit score from 637 to 637 by using these suggestions, which will enable you to get better loan terms and interest rates down the road.
What Is a Good Credit Score to Buy a House?
You should strive to have a credit score in the good range in order to improve your chances of being approved and being eligible for a lower-rate mortgage. Thats a FICO score of 670 or higher.
Depending on the type of mortgage loan you’re applying for and your lender, the minimum credit score required to purchase a home can range from 500 to 700. Most lenders require a minimum credit score of 620 to buy a house with a conventional mortgage. Other types of mortgages have different credit score requirements:
- Generally speaking, FHA home loans require a credit score of at least 500 if you put down 10% of the total or 80% if you put down 3%. 5% down.
- USDA loans do not have a minimum credit score requirement; however, lenders usually do.
- Additionally, there is no minimum credit score required for VA loans; however, lenders usually want a score of 620 or above.
Recall that the interest rate and terms of a mortgage loan are determined in part by your credit score. Lenders base the interest they charge on how risky they view you as a borrower. Therefore, even though it might be possible to obtain a mortgage with poor credit, it’s usually preferable to raise your score in order to be eligible for favorable terms before applying for a mortgage.
How to Improve Your Credit Scores
To improve your credit scores, focus on the underlying factors that affect your scores. At a high level, the basic steps you need to take are fairly straightforward:
- Make all of your debt payments on time, and at least the minimum amount due. Your credit scores can be negatively impacted by even a single late payment, which can remain on your record for up to seven years. Get in touch with your creditors as soon as you suspect you might miss a payment to see if they will work with you or provide hardship options.
- Keep your credit card balances low. When comparing the credit limit and current balance of revolving accounts, like credit cards, your credit utilization rate plays a significant role in the scoring process. Lower credit utilization can improve your credit scores. The overall utilization rate of people with excellent credit is typically in the single digits.
- Open accounts that will be reported to the credit bureaus. Make sure that any credit accounts you open will be added to your credit report if you don’t have many credit accounts. These could be revolving accounts like credit cards and credit lines, or installment accounts like student, auto, home, or personal loans.
- Only apply for credit when you need it. A hard inquiry resulting from applying for a new account may slightly lower your credit scores. While the effect is usually negligible, applying for a lot of different credit cards or loans in a short amount of time may result in a bigger credit score decline.
Other factors can also impact your scores. For example, increasing the average age of your accounts could help your scores. However, thats often a matter of waiting rather than taking action.
Checking your credit scores might also give you insight into what you can do to improve them. For instance, you can look at how you’re doing in each of the credit score categories when you check your free Experian FICO® Score 8.
Additionally, you’ll receive a summary of your score profile that shows you what’s improving and detracting from your score.
637, 644, 645, 647, or 653 Credit Score? Watch This Til the End
FAQ
Can I buy a house with a credit score of 637?
Can I get a personal loan with 637 credit score?
Can you get a credit card with a score of 637?
What is an excellent credit score?
What are the consequences of having a 637 credit score?
Although a 637 credit score is not poor, it is also not good either. As a result, some lenders might reject credit applications from borrowers with 637 credit scores as having bad credit, while others might approve your loan but are likely to charge high-interest rates and fees.
How can I improve my 637 credit score?
Some of the ways that might help you increase your 637 credit score are: The holy grail of improving your credit score is to pay your bills on time. If your credit score is 637 and you are looking for ways to increase your credit score, this is the way to go.
Are lenders willing to work with consumers with a 637 credit score?
Very few personal loan lenders will approve you for a personal loan with a 637 credit score. However, there are some that work with bad credit borrowers. But, personal loans from these lenders come with high interest rates.
What is the average credit score in the US?
The average credit score in the U.S. is at an all-time high of 711. This coincides with what the Consumer Financial Protection Bureau defines as ” prime .” About 1 in 5 American adults either have no credit history (“credit invisible”) or are unscorable.