Do you have a 629 credit score?
What does it mean to have a credit score of 629? Is that good or bad? And how can you improve your credit score if it’s not where you want it to be right now? We will answer all these questions and more in this blog post.
You might think having a low credit score is the worst thing ever, but let us assure you – there are plenty of ways to improve your situation. So if your current credit rating isn’t up to scratch, don’t worry – we know exactly what steps you need to take for things to get better.
Improving your financial health is easier than most people think! All it takes is some time and effort on your part, and soon enough, everything will be back on track again.
Keep reading to learn where your 629 credit stands and what you can do to improve it.
Understanding the Credit Score Range
Before we talk about your credit score of 629, let’s cover the basics. A credit score is nothing more than a number used to predict how likely you are to pay back money that you borrow. The higher the number, the more likely you will repay what you owe on time – if not early. As a general rule of thumb, the higher your score, the better.
So what are some good credit scores to have? Well, it really depends on who you’re asking, but as a very broad benchmark, 580 and below is considered “poor” and 740 and above is considered very good.
Although this might seem low compared to what you were expecting, the reality is that most people tend to overestimate their creditworthiness. So don’t feel too bad if you fall below this figure!
Below is a breakdown of the FICO score ranges and what it means:
- 300-580 Bad Credit: This is the lowest range and means that you’ve had some severe problems.With this lower credit score, your credit will be very limited, and it’ll probably take a while before things start to improve.
- 581-669 Fair Credit: If your score falls in this range then it’s not great, but you’re definitely not the worst off. You should still be able to get some loans and other forms of credit, but you’ll often find yourself paying more than someone who has a higher rate. This is range is typically considered the minimum credit score requirement range if you want to get approved for credit or a loan.
- 670-739 Good Credit: This is the range most people achieve when they first start out. It means that your credit score is actually fairly good, and lenders will see you as a pretty safe bet. You won’t pay too much for loans or credit cards, and you’ll be able to get the most favorable interest rates available on the market.
- 740-799 Great Credit: A score of 740+ is what most people think of when they hear the phrase “a good credit score.” With this higher credit score, it’s a great range (in terms of rates) that you can get, and it gives you access to some really great benefits. The best part is that getting an excellent score is definitely achievable if you know what to do.
- 800-850 Excellent Credit: It’s nearly impossible to miss a payment with a credit rating of 800+, which means the interest on your loans or credit cards will be very low. This is the highest score that lenders usually look at, and it’s essentially the point where financial problems become almost non-existent.
With a 661 Credit Score, are considered FAIR credit scores. This means that there’s plenty of room for improvement but that your credit isn’t terrible by any means. The good news is that you’re in the perfect position to take control of your financial destiny and push yourself in the right direction.
Now that we’ve established the Credit Score ranges, we’ll discuss what factors go into your credit.
Credit Score Factors
There are multiple factors that affect your credit rating: some good and some bad. As a responsible borrower, you’ll want to understand what these factors are and how they can affect you long term. So let’s break down the major ones:
1) Your Payment History. This is easily one of the most important aspects of your entire credit score. Lenders care about the money you owe to them, and they’re very interested in finding out if you pay back what you owe. This is why your payment history (or lack thereof) has such a significant impact on your credit score.
2) How Much You Owe. Of course, lenders don’t want to give you too much money. If you have a good credit score, this is great for you, but if it’s bad, then they will be much more reluctant to hand out funds (and at worse rates). So how does your credit rating benefit from having less debt? Simple: the lower your outstanding loan amount, the lesser chance that you’ll default on payments and the less overall money you’ll owe.
3) The Length Of Credit History. This is another important factor with regard to your credit rating. Lenders like it when you’ve been borrowing for a long time (especially if you paid them back) because this means that they can make more judgments based on how responsible you are financial. So if you have a good history, your credit will benefit.
4) New Credit. Although your history is important, it’s also really good to have a few other things on your side. One of the most valuable aspects to consider is the number of “credits” or accounts you’ve opened recently. For example, opening up three credit cards at once will negatively affect your score even if you pay them back responsibly.
5) Credit Mix. This is another vital aspect of your credit rating. It tells lenders about your willingness to take on different types of debts, and the better you get at it, the more likely they are to approve new loans. Again, this is a very good sign for your financial health, so do all that you can to improve this factor if it currently isn’t up to snuff.
Getting Approved with a 629 Credit Score
Getting approved for a credit card with a 629 score might be a little more complex, but there are still options that you can look into. Most major credit card companies have something for everyone – even those with sub-par credit scores. So all you need to do is keep at it until you find the right one. Some of the best credit cards for fair credit include Discover cards and Capital One.
Getting approved for auto loans with a 629 score is also much easier when compared to other credit cards. If you can find a reasonable rate, then you might be able to get the car that you’ve been dreaming of. But, again, it’s all about persistence and looking until you find the right company. The last think you want to do is pay higher interest rates because of your average credit score.
Getting approved for a mortgage loan with a 629 score might be difficult, but it’s not impossible. If you take the time to find the right mortgage lenders (or broker), you may get one of these loans. Some good places to start include Upstart and Lending Club.
Home Equity Loans
You can also get these loans with a 629 score, but keep in mind that this will improve your credit rating. If you need the money, it’s worth looking into (because they’re good for improving credit history), but if you don’t think you’ll pay them back, it’s best to leave them alone.
You can get a personal loan with a 629 score, but you’ll need to make sure that the APR is low enough for you to pay it back. If it isn’t, then there’s no reason to take one of these loans and instead put the money into savings (and improve your credit rating). It important to research the financial institution you are considering and reading the fine print. You want to make sure you are not paying any additional fees.
629 Credit Score Guide – Improve Your 629 Credit Rating
Before you begin to start the journey of improving your 629 credit score, it’s important to understand what’s on your credit report. You can get a free credit report by visiting AnnualCreditReport.com. You can pull all 3 major credit bureaus with no strings attached. The steps to pull your credit report are easy and link you directly with Experian, TransUnion and Equifax all in one place.
Once you’ve obtained a copy of your report, you can begin workin on on higher scores by following the steps below:
1) Improve Your Payment History. This is the most important aspect of your credit score, so if you want to get better results here, the best way is paying off any remaining debts before applying for a loan or new credit card. While it’s not possible to change history that has already passed, you can still take control of the future by improving your payment history now by making timely monthly payments.
2) Improve Your Debt Usage. Another critical factor is how much debt you currently have compared to your credit limit. So if you want to improve your score, it’s a good idea to try and lower this amount as much as you can, particularly if you have any credit card balances. It means that you’ll have to use less of your available credit in the future, which will help pay off your debts much faster.
3) Make Sure You Have the Right Credit Mix. If you’ve never had any loans or credit cards before, then improving your credit rating is going to take a very long time. However, the more loans and credit cards you have, the better your score will be. This means that it’s well worth getting a car loan or even a few credit cards to boost your score in the short term.
4) Don’t Open New Accounts If Possible. While applying for new accounts will significantly improve your credit history, it’ll also have a negative effect on your score. Again, this is because you have a limited number of “inquiries” per year – which can be considered a credit risk. So try to improve your score by focusing on the other factors if possible.
5) Pay Off Debt Before Adding More. Taking out a new loan or credit card will significantly damage your score, so try to pay off any remaining debts before applying for anything else. This is even more important if you already have a high credit score because lenders will assume that you’re desperate for money (and instead try to take advantage of your need).
6) Improve Your Score by Asking for Lower Rates. If you currently owe money on any loans (or credit cards), you might want to try asking the lender for a lower interest rate – just explain that your score is low and that you’re finding it difficult to pay off what you owe.
7) Improve Your Score by Using Different Lenders. If you currently owe money to one lender, ask them if it’s possible to transfer the debt to someone else (preferably a better lender). This will improve your credit history and payment history, which will affect your score positively.
8) Improve Your Score by Asking for Lender Contact Details. The more regularly you pay off your debts, the better it’ll look to lenders. To encourage this, try asking one of your creditors for their customer service number – so that you can call them whenever you need to make a payment (instead of having to use online options).
9) Improve Your Score by Remembering the Golden Rule. The golden rule of credit scores is that the more you owe, the worse your score will be. So try to pay off as much debt as possible before applying for new loans or credit cards – this way, you’ll avoid lowering your score even further.
10) Get a Secured Credit Card. Unfortunately, it can take up to ten years for new customers to build up a good credit score (even if they only open one new card). While this is the case, you can improve your score by getting a secured credit card. You’ll be charged an annual fee for using it, but this will quickly be paid off once you start making payments on time each month.
Credit Repair Companies
Consider using a credit repair company if you’re in the market to get a home loan or auto loan and want to take advantage of the best rate. For the right fee, these companies can help you to get back into the good graces of creditors and lenders who may have denied your application in the past because of lower scores from late payments or collections.
There is a lot of misinformation out there about what these companies can and cannot do for your credit. In many cases, it is possible to rebuild your credit yourself through patience and persistence, but some people just don’t have the time or the motivation to fight their errors with creditors. A company offering professional services can be helpful in getting things back on track quickly.
A credit score of 629 is generally considered to be a fair score. It means that you have a history of paying your debts on time, and you’re likely to get approved for most loans or lines of credit.
However, there are still ways that you can improve your score – especially if it’s not as high as you would like it to be. It could take some time to see an improvement depending on what actions you’ve taken. We’ve outlined 10 tips in this article that will help you boost your credit rating over time. It’s important to reduce the amount you owe such a credit card debt, student loans and conventional loans to avoid paying high interest rates.
So don’t despair if your current score is lower than you’d like – start implementing these tips today and see how your score improves gradually!