My credit score is 630. What can I do?

The 630 score is in the fair range on the scale, which is not bad. You will, however, have to pay higher interest rates on loans or credit cards.

credit score
According to FICO, nearly 9% of Americans had scores between 600 and 649 in 2019. If you pay every bill on time and never use more than 30% of the credit limit, you can easily increase your credit score.

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Your credit score decides if you are eligible for credit cards and loans, and also determines the interest rate a lender will charge you. Both FICO and VantageScore use the 300-850 point range, and fair credit starts around 630.

There is no specific number that would qualify you for a loan or credit card as lenders and credit card issuers have varying scores required to approve. The 630 score is in the fair range on the scale, which is not bad. You will, however, have to pay higher interest rates on loans or credit cards.

What am I eligible for?

With a 630 credit score, you can qualify for a mortgage or car loan, but you will pay higher interest rates than someone else with a good credit score.

Also, you should be careful and not miss out on essential payments as you might quickly enter the bad range. But you can also consider prioritizing your credit score improvement for some months and soon enter the good range.

What can I do to enter the good range? Any expert advice?

Well, you’re in the right place. Here’s what you can do:

  • Apply for a secured credit card since a cash deposit supports it.
  • Credit unions offer credit-builder loans or secured loans. These loans are great options to increase your score when you’re simultaneously saving money.
  • If you know anyone with a high credit score and long credit history, you can try contacting them and request them to add you as an authorized user on their credit card.
  • Continue the excellent work! Pay every bill on time and never use more than 30% of the credit limit from every credit card you have unless you really have to, like a hospital emergency. The lower you use it, the better it is. These two factors are crucial to building your credit score.

This page is purely informational. Line does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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