So, you’ve checked your credit score and it’s sitting at 640. This falls within the “fair” credit range, which isn’t exactly stellar, but it’s not the end of the world either. Let’s dive deeper into what this score means for you and how you can improve it.
What Does a 640 Credit Score Mean?
A 640 credit score is considered “fair” and indicates that you have a somewhat limited credit history or have experienced some credit challenges in the past. While this score won’t unlock the best loan rates and credit card offers, it’s not a deal-breaker. You can still qualify for many financial products, but the terms might not be as favorable as someone with a higher score.
What Can You Do with a 640 Credit Score?
- Credit cards: You can likely qualify for some credit cards, but expect higher interest rates and annual fees. Secured credit cards are a good option to build your credit history and improve your score.
- Personal loans: You may qualify for personal loans, but the interest rates will be higher than those offered to borrowers with good or excellent credit.
- Auto loans: Auto loans are readily available with a 640 credit score, but the interest rates will be higher, leading to larger monthly payments.
- Mortgages: Obtaining a mortgage with a 640 credit score is possible, but you’ll likely need a larger down payment and may face higher interest rates.
How to Improve a 640 Credit Score:
- Pay your bills on time: This is the most crucial factor in improving your credit score. Make sure to pay all your bills, including credit card bills, utility bills, and rent, on time every month.
- Reduce your credit utilization: Aim to keep your credit card balances below 30% of your available credit limit. This demonstrates responsible credit usage to lenders.
- Dispute errors on your credit report: Review your credit report for any errors and dispute them with the credit bureaus. Even small errors can negatively impact your score.
- Become an authorized user on a responsible credit card: If you have a friend or family member with good credit, ask them to add you as an authorized user on their credit card. This can help improve your credit score over time.
- Apply for a secured credit card: Secured credit cards require a security deposit, which acts as your credit limit. Using the card responsibly and paying your balance on time can help build your credit history and improve your score.
Additional Resources:
- WalletHub Credit Score Simulator: Use this tool to see how different actions can impact your credit score.
- Credit Karma: Get your free credit score and report from Credit Karma.
- AnnualCreditReport.com: Get your free credit reports from all three major credit bureaus.
Remember: It takes time and effort to improve your credit score. By following these tips and being patient you can gradually increase your score and unlock better financial opportunities.
What Does a 640 Credit Score Get You?
| Type of Credit | Do You Qualify? |
|---|---|
| Store Credit Card | YES |
| Unsecured Credit Card with No Annual Fee | YES |
| Unsecured Credit Card with Rewards | YES |
| Home Loan | YES |
| Auto Loan | YES |
| Personal Loan | MAYBE |
| 0% Intro APR Credit Card | NO |
Note: While qualifying for a personal loan or credit card may be possible in certain situations, finding a good offer will likely be challenging.
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.
Popular Credit Cards for a 640 Credit Score
People with credit scores below 700 receive more than 40% of all auto loans. Still, it’s important to compare your auto loan options carefully if you want to get a decent APR.
640 – 659 Credit Score: Key Things to Know
FAQ
What credit score is Tier 3?
How much of a loan can I get with a 640 credit score?
|
Lender
|
Loan Amounts
|
APRs
|
|
Upstart
|
$1,000 – $50,000
|
6.4% – 35.99%
|
|
Oportun
|
$300 – $18,500
|
10.07% – 35.95%
|
|
OneMain Financial
|
$1,500 – $20,000
|
18% – 35.99%
|
|
RISE
|
$500 – $5,000
|
60% – 299%
|
Can I buy a home with 640 credit score?
Is a 640 credit score good to buy a car?
Is a 640 credit score a fair score?
Our content is accurate to the best of our knowledge when posted. A 640 credit score is generally a fair score. While a lot of people have fair scores, you may still find it difficult to get approved for credit without high fees and interest rates with a score in this range. “Fair” score range identified based on 2023 Credit Karma data.
What is a 640 FICO ® score?
A 640 FICO ® Score is a good starting point for building a better credit score. Boosting your score into the good range could help you gain access to more credit options, lower interest rates, and fewer fees.
Can you get a credit card with a 640 credit score?
With a 640 credit score, you might be able to get a traditional credit card. While most credit card issuers don’t publish minimum credit scoring standards, some will approve applicants in the fair credit range.
What is the best credit card for a 640 credit score?
The best type of credit card for a 640 credit score is a card with high approval odds and low fees, like a starter credit card, a store credit card, or a secured credit card. Each type of card is available to people with fair credit, and some offers have extra perks like rewards.