628 Credit Score: Is It Good Or Bad (+ Can I Fix It)?
- A credit score of 628 is considered fair and can limit your borrowing options.
- Taking steps like timely payments and correcting errors can help improve your score.
- Call The Credit Pros for personalized guidance to potentially boost your score and enhance your financial opportunities.
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A credit score of 628 is fair and signals higher risk to lenders. This score can limit your financial options, like getting a mortgage or a personal loan. To improve your score, make timely payments, reduce your credit utilization below 30%, and correct any errors on your credit report. Every positive step you take pushes your score higher and makes a real difference in your financial future.
If you're unsure how to start, call The Credit Pros. We’ll chat in a relaxed, no-pressure way to evaluate your credit report from all three bureaus. This personal approach helps us tackle your unique situation and outline practical steps to raise your score. The sooner you act, the better your chances of opening important financial doors.
Don't let a fair score hold you back. Reach out today, and let’s boost your credit together!
On This Page:
Why Is My Credit Score Only 628?
Your credit score is 628, which is considered "fair," indicating you might be seen as a higher-risk borrower by lenders. Several factors could lead to your score being at this level.
• Payment History: If you miss payments, especially those overdue by 30 days or more, it significantly impacts your score. Late payments can stay on your credit report for seven years.
• Credit Utilization: High credit card balances relative to your limits can lower your score. Aim to keep your credit utilization below 30% for a healthier score.
• Length of Credit History: A relatively short credit history may also bring down your score. A longer history shows lenders you manage credit responsibly.
• Types of Credit: If you only have one type of credit account, such as just credit cards, consider diversifying. A mix of credit types, like auto loans and personal loans, can help boost your score.
• Recent Inquiries: Multiple recent credit inquiries may signal to lenders that you are aggressively seeking credit, which can lower your score temporarily.
To improve your score, make timely payments, reduce debt, and check for inaccuracies on your credit report. Big picture, focus on consistent payments and credit management, and you'll likely raise your score over time.
5 Best Ways To Boost A 628 Credit Score?
To effectively boost your 628 credit score, focus on these five strategies:
1. Make Timely Payments: Pay all your bills on time. Your payment history significantly influences your credit score, accounting for 35% of your FICO Score.
2. Reduce Credit Utilization: Maintain your credit utilization ratio below 30%. Pay down existing balances and use no more than this percentage of your credit limit, which also constitutes 30% of your score.
3. Correct Credit Report Errors: Get copies of your credit reports from Experian, TransUnion, and Equifax. Check for inaccuracies and dispute any errors, as correcting these can positively affect your score.
4. Limit New Credit Applications: Avoid frequently applying for new credit accounts. Each application results in a hard inquiry, which can slightly lower your score, so apply strategically.
5. Use a Secured Credit Card: If you struggle to get approved for traditional credit cards, consider a secured credit card. Make regular, on-time payments to build a positive credit history.
Overall, by implementing these steps-timely payments, reduced credit utilization, corrected errors, limited applications, and using secured credit cards-you can steadily improve your score and achieve your credit goals. Regularly monitor your progress to see how well you're doing.
Major Factors That Keep My Fair Credit Score Low?
Several major factors keep your fair credit score low. Addressing these can help improve your situation.
• Payment History: This factor affects about 35% of your credit score. Late payments, defaults, or missed payments can significantly harm your score. To improve, pay your bills on time. Set reminders or automate payments.
• Credit Utilization: This accounts for around 30% of your score and measures how much of your available credit you use. Aim to keep your utilization below 30%. High usage can lower your score, so pay down existing balances.
• Length of Credit History: The age of your credit accounts makes up about 15% of your score. A longer credit history usually helps your score. If you close old accounts, it shortens your credit history and negatively impacts your score.
• Credit Mix: Having a variety of credit types, such as credit cards, loans, and mortgages, accounts for about 10% of your score. A diverse credit mix can boost your score, so avoid focusing on just one type of credit.
• New Credit: Opening many new accounts in a short time can negatively impact your score. Each credit inquiry can lower your score slightly, so be cautious about applying for new credit.
As a final point, focus on paying your bills on time, managing your credit utilization, and maintaining a diverse credit mix to improve your score from its current fair level. You have the power to take control of your credit situation.
How Long To Improve My 628 Credit Score 100-150 Points?
To improve your 628 credit score by 100-150 points, you typically need 3 to 6 months, but it could take longer based on your situation. Here’s how you can make progress:
• Reduce your credit utilization by keeping it below 30% of your total available credit. This change can positively impact your score quickly.
• Pay all your bills on time, including credit cards, utilities, and other recurring payments. Timely payments matter since they account for 35% of your score.
• Address negative items on your credit report. If you have late payments or collections, work on settling them to enhance your overall credit profile.
• Use tools like Experian Boost to gain credit for paying accounts not usually reported. This may help raise your score faster.
• If you're comfortable, become an authorized user on someone else's credit card with a good payment history. This can improve your score by association.
To put it simply, focus on lowering your credit utilization, making on-time payments, addressing negative items, using available tools, and leveraging good credit relationships. Stay consistent and monitor your progress to see improvements.
Can I Realistically Get A Mortgage With A 628 Credit Score?
Yes, you can realistically get a mortgage with a 628 credit score. Your score is in the "fair" range, meaning it won’t guarantee approval but also won’t entirely prevent you from qualifying.
You have options. For example, the Federal Housing Administration (FHA) allows borrowers with a score of at least 580 to qualify for a mortgage with a 3.5% down payment. If you can afford a 10% down payment, your score can go as low as 500, although this is uncommon.
Different lenders have varying criteria. Some may accept your 628 score, while others may need a higher one. To enhance your chances, prepare a strong application by demonstrating stable income and keeping your debt minimal.
Keep in mind that as a higher-risk borrower, you might encounter higher interest rates. Therefore, shop around for the best rates and terms.
In short, you can secure a mortgage with a 628 credit score by exploring FHA options, presenting a solid application, and comparing lender offers for better rates. Each step improves your chances and gives you more control over your mortgage journey.
Can I Get A Personal Loan With A 628 Credit Score?
Yes, you can get a personal loan with a 628 credit score. This score is in the "fair" range, which means lenders may view you as a higher-risk borrower. This perception can impact your loan approval chances and the terms you receive.
• Look for lenders that cater to borrowers with fair credit. Some have minimum score requirements below 628, increasing your chances of approval.
• Expect potentially higher interest rates. Lenders may charge more due to your below-average score compared to borrowers with stronger credit.
• Strengthen your application by demonstrating a solid income and steady employment history. This shows your ability to repay the loan, even with a lower credit score.
• Consider applying for a secured loan. These loans require collateral and might be easier to obtain, but remember, they pose the risk of losing your asset if you default.
• If possible, find a co-signer. If someone with better credit is willing to co-sign, it could enhance your chances of approval and improve your loan terms.
To finish, while you can obtain a loan with a 628 score, expect less favorable terms. We advise exploring your options and working on improving your credit for better opportunities in the future.
Can I Buy Or Lease A Car With A 628 Credit Score?
Yes, you can buy or lease a car with a 628 credit score. Although your score is below the "good" range typically starting at 700, it doesn’t completely eliminate your options.
When leasing a vehicle, lenders often focus on your credit score to assess your risk. A score of 628 is considered fair, so you might face higher interest rates or need a larger down payment compared to those with better scores. Generally, leasing companies prefer scores above 670, so your choices may be limited. However, your income and debt-to-income ratio also play a significant role in approval.
If you decide to buy a car, some lenders accept scores as low as 600. Expect higher interest rates, which lead to higher monthly payments. You may need a co-signer or a substantial down payment to improve your chances.
To improve your situation, consider boosting your credit score before applying. You can do this by:
• Paying down existing debts
• Making payments on time
• Checking your credit report for errors
In essence, while you can buy or lease a car with a 628 credit score, focusing on improving your credit can help you secure better financing options and reduce your costs.
Credit Card (Secured Or Unsecured) Options With A 628 Credit Score?
With a 628 credit score, you have options for both secured and unsecured credit cards, though your choices may be limited.
For secured credit cards, you need to make a deposit that acts as collateral, helping you build or rebuild your credit. Consider options like the Capital One Platinum Secured Credit Card or the Discover it® Secured Credit Card. Both can pave the way to transitioning to unsecured cards after you show responsible use.
Secured options set you up for better credit in the future.
For unsecured credit cards, qualifying may be tough, but there are still cards aimed at individuals with fair credit. These often come with higher interest rates and lower credit limits. The Upgrade Cash Rewards Visa is one option that offers cash back while helping you build credit.
To increase your chances of approval, keep your payment history consistent and your credit utilization low. Exploring ways to boost your score can further improve your future credit options.
To wrap up, focus on secured cards to start rebuilding your credit, consider unsecured cards designed for fair credit, and actively work on improving your payment habits and credit score for even better opportunities down the line.
Should I Become An Authorized User With A Fair Credit Score?
Becoming an authorized user with a fair credit score, like 628, can benefit you. It may help improve your credit score over time. Research indicates that individuals in your situation often see score increases-sometimes as much as 24% in six months-especially if the primary user manages their credit well.
Keep key factors in mind. If the primary cardholder has a strong credit history, their positive payment habits can improve your score. This connection can also lower your credit utilization ratio, which plays a significant role in determining your score.
Verify whether the credit card issuer reports authorized user activity to major credit bureaus-Experian, TransUnion, and Equifax. If they don’t report, you may not see any improvement from this arrangement.
Be selective about your primary account holder. If they miss payments or maintain high balances, it could negatively impact your credit score. You definitely want to avoid a situation where their poor financial habits harm your credit history.
On the whole, if you can align with someone who has a solid credit track record and the lender reports authorized user activities, becoming an authorized user can be a smart move to enhance your credit standing.
Which Negative Marks On My Credit Report Affect My 628 Credit Score?
Negative marks on your credit report significantly affect your 628 credit score. Here are the main types of negative marks that can impact your score:
• Late Payments: Missing a payment can lower your score. Payments that are 30 days late remain on your report for up to 7.5 years, significantly damaging your score.
• Collections: If you don’t pay your debts, accounts may go to collections. These marks stay on your report for 7 years from the date of the first missed payment.
• Charge-offs: When a creditor writes off a debt as a loss, it’s called a charge-off. This stays on your credit report for 7 years and can severely impact your score.
• Bankruptcy: Bankruptcy is one of the most damaging marks. Chapter 7 bankruptcy remains on your report for up to 10 years, while Chapter 13 stays for 7 years. Both drastically reduce your score.
• Foreclosures: Losing your home to foreclosure leaves a mark on your credit report for 7 years, causing significant damage to your credit score.
• Civil Judgments and Tax Liens: These derogatory marks can also appear on your report. Paid tax liens disappear after 7 years, while unpaid ones may linger indefinitely.
Each negative mark reduces your score and makes it harder for you to qualify for credit or loans with favorable terms. Focus on correcting inaccuracies by disputing incorrect information with the credit bureaus. Adopt good credit habits to improve your score moving forward.
Bottom line - addressing negative marks and correcting inaccuracies on your credit report can help you improve your score and enhance your chances of obtaining better credit options.
Should I Negotiate And Pay Off Debts To Improve My Fair Credit Score?
Yes, you should negotiate and pay off debts to improve your fair credit score, but proceed with caution. When you negotiate, you often agree to pay less than what you owe. This can lower your overall debt but may initially hurt your credit score. Your credit score depends largely on your payment history, and settling a debt changes your original agreement, which can result in a negative mark on your report.
Here’s what you need to know:
• Paying off debts lowers your credit utilization ratio, a crucial factor in your score.
• Settled debts appear as “paid-settled,” which can temporarily lower your score.
• You must weigh whether settling your debt offers more long-term benefits than simply paying it off.
Consider contacting your creditors or partnering with a reputable debt settlement company to explore your options.
In a nutshell, negotiating and paying off your debts might lead to short-term credit score drops, but avoiding future late payments can benefit you in the long run. Always assess your financial situation to make the best decision.
Best Site To Monitor My Credit Report?
The best site to monitor your credit report is WalletHub. You get full credit reports updated daily, helping you stay on top of your credit health without delay. You’ll gain a comprehensive view of your financial situation and never miss important updates.
For your free annual credit report, you can use AnnualCreditReport.com. This is the only federally authorized source to access reports from Equifax, Experian, and TransUnion. Remember, it allows only one report per bureau every twelve months.
If you want ongoing credit monitoring, consider Credit Karma. It provides two free credit reports, daily updates, and helpful tools to improve your understanding of credit.
For those focusing on FICO scores, myFICO is a great option. You’ll access detailed credit reports from all three bureaus, which is beneficial since lenders commonly use FICO scores.
Always understand the features and any costs associated with each service. Your choice should fit your monitoring needs and financial goals.
All in all, utilize WalletHub for daily credit monitoring, AnnualCreditReport.com for annual reports, Credit Karma for ongoing tracking, and myFICO for FICO score insights. This strategy will empower you to manage your credit effectively.
Should I Consider A Credit Builder Loan W/ Fair Credit?
Yes, you should consider a credit builder loan if you have fair credit. A credit builder loan helps you improve your credit score. Instead of receiving the loan amount upfront, you make fixed monthly payments over six to 24 months. These payments get reported to major credit bureaus, positively impacting your credit score.
With fair credit, your options for traditional loans may be limited. Credit builder loans have more flexible approval requirements, focusing on your income and employment history rather than just your credit score. This makes it easier for you to qualify.
On-time payments account for 35% of your credit score. By consistently making payments on a credit builder loan, you can gradually enhance your score.
Before you proceed, compare interest rates and terms among various lenders, as they can differ significantly. Also, ensure that the lender reports to all three major credit bureaus-Experian, TransUnion, and Equifax.
The gist of it: If you're looking to strengthen your credit and can manage the monthly payments, a credit builder loan is a smart choice for you with fair credit.
Is A 628 Credit Score Different Between Fico And Vantage
Yes, a 628 credit score differs between FICO and VantageScore models. Both scoring systems range from 300 to 850 but interpret scores in distinct ways.
Your 628 score is considered "fair" in both models. However, the specific thresholds vary slightly. For example, FICO categorizes scores from 580 to 669 as fair, while VantageScore uses a range of 601 to 660. This means a 628 score falls into the fair category for both, but the scoring criteria can impact how it’s assessed.
Each model employs different algorithms and weighs factors like credit utilization and payment history differently. Thus, even with identical credit histories, your scores may vary.
Understanding these differences is essential because lenders might use either model to evaluate your creditworthiness. Always check both scores for a complete picture of your credit situation.
Remember, knowing your scores under both models can help you understand your credit standing and make informed decisions moving forward.
Does A 628 Credit Score Affect My Chances Of Renting An Apartment?
Yes, a 628 credit score affects your chances of renting an apartment. This score is considered fair, and many landlords prefer tenants with scores above 620, indicating a moderate level of creditworthiness.
With a score of 628, landlords may still review your application, especially if you provide strong supporting documents. They typically assess your credit history, current income, and rental references. Your recent payment history is especially important-landlords want to see timely bill payments.
If you’re concerned about being denied, consider these steps:
• Get a co-signer with a better credit score.
• Offer a larger security deposit or pay several months' rent in advance.
• Explain any issues on your credit report to the landlord.
Remember, different landlords have varying requirements, and some might not even conduct a credit check. Apply to multiple places to improve your chances of finding an apartment that will accept you.
At the end of the day, focus on presenting your best self: consider a co-signer, offer more upfront, and communicate openly about your credit history for a better shot at securing your rental.
Can A Credit Repair Company Actually Boost My 'Fair' Score
Yes, a credit repair company can boost your 'fair' credit score. They help you dispute inaccuracies on your credit report, potentially leading to an improved score. If you have errors, like incorrect late payments or issues from identity theft, they can work to remove these blemishes.
However, no one, including credit repair companies, can change or remove accurate information on your report. If you have legitimate derogatory marks, such as late payments, they can guide you on improving your credit habits, but they cannot alter the facts.
When choosing a credit repair company, select a reputable one. Be wary of scams promising unrealistic results. Most companies charge monthly fees for their services, and you should be cautious of any upfront costs.
Before hiring a credit repair company, you have the option to dispute errors yourself at no cost. Under the Fair Credit Reporting Act, you can access your reports and contest inaccuracies without paying a third party. If you aim to improve your 628 credit score, this option may be more economical and empowering.
Lastly, remember that while a credit repair company can assist with disputes, you hold the responsibility for maintaining good credit practices and ensuring accurate reporting.