635 Credit Score: Is It Good Or Bad (+ Can I Fix It)?
- A 635 credit score is considered "fair" and can limit loan and rental opportunities.
- Timely bill payments and checking for credit report errors can help improve your score.
- Call The Credit Pros to explore potential solutions tailored to your needs and take control of your credit today.
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A 635 credit score falls into the "fair" range. Missed payments, high debt, and a shorter credit history often bring down this score. This can limit your chances of securing loans, mortgages, or even rentals, so you need to take action.
Boosting your 635 credit score isn't hard. Pay your bills on time, keep your credit card balances low, and steer clear of unnecessary new credit applications. Check your credit report for errors regularly, and if you've got a stable income, think about becoming an authorized user on someone else's account to help improve your score.
The best thing to do now is call The Credit Pros. We’ll have a no-pressure chat to look over your 3-bureau credit report and craft solutions that fit your situation. Don’t wait—improving your credit can lead to better financial opportunities.
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Why Is My Credit Score Only 635?
Your credit score of 635 is considered "Fair" or "Poor," which indicates that lenders see you as a higher-risk borrower. Several factors may contribute to this score:
• You might have missed payments or made late payments. Payment history has the largest impact on your score, and even one late payment can significantly hurt it.
• The amount of debt you owe matters too. High credit card balances relative to your limits can lower your score.
• Your credit history length also affects your score. If you recently opened accounts or have a short credit history, this can negatively influence your score.
Remember that each credit agency uses slightly different scoring models, so your score may vary across agencies. You can improve your score by ensuring all your payments are on time and reducing your outstanding debts. For more specific strategies, check out the section on "5 best ways to boost a 635 credit score" in our article.
In a nutshell, focus on making timely payments, lowering your debt, and maintaining a longer credit history. You’ve got actionable steps to improve your credit score!
5 Best Ways To Boost A 635 Credit Score?
To boost your 635 credit score, you can follow these five effective strategies:
• Pay Bills on Time: Your payment history plays a crucial role in your credit score. You should prioritize paying all bills on time. Consider setting up automatic payments to help you never miss a due date.
• Reduce Credit Card Balances: Aim to lower your credit utilization ratio. Keep your credit card balances below 30% of your total credit limit. You can make multiple payments each month to keep these balances low.
• Avoid New Debt: Limit your new credit applications. Each application can lower your score. Focus on paying down existing debts instead of taking on new ones.
• Check Your Credit Report: Regularly review your credit report for errors. You need to dispute any inaccuracies, as they can negatively impact your score.
• Become an Authorized User: Ask a trusted friend or family member to add you as an authorized user on their credit card. This step can help you benefit from their positive payment history.
All in all, by paying bills on time, reducing credit card balances, avoiding new debt, checking your credit report, and becoming an authorized user, you can effectively improve your credit score over time and access better loans and credit products.
Major Factors That Keep My Fair Credit Score Low?
Major factors that keep your fair credit score low include your payment history, credit utilization, length of credit history, new credit inquiries, and the mix of credit accounts you maintain.
1. Payment History: This is the most crucial factor. Missing payments negatively impacts your score. Always pay your bills on time. You can set up automatic payments to avoid late fees.
2. Credit Utilization: This shows how much credit you use compared to your total credit limit. A high utilization ratio can lower your score. Aim to keep your credit card balances below 30% of your total credit limit.
3. Length of Credit History: The age of your credit accounts matters. Longer account history helps your score. Avoid closing old accounts, as this can reduce your average account age.
4. New Credit Inquiries: Frequently applying for new credit leads to hard inquiries, which may lower your score. Limit the number of new accounts you open within a short period.
5. Credit Mix: A variety of credit types, such as credit cards, mortgages, and installment loans, can positively affect your score. Only take out credit that you truly need.
The gist of it is that by addressing these factors-like paying bills on time and managing your credit utilization-you can improve your fair credit score. This improvement can make you more eligible for loans and better rates.
How Long To Improve My 635 Credit Score 100-150 Points?
Improving your credit score from 635 by 100-150 points typically takes about 90 days, but your specific financial situation can influence this timeline. Key factors include your payment history, credit utilization, and existing debts. Here are actionable steps you can take to accelerate this process:
• Pay On Time: You contribute to 35% of your score with timely payments. Set up autopay or reminders to avoid missing due dates.
• Reduce Debt: Aim to lower your revolving credit utilization to below 30%. Paying down credit card balances can significantly boost your score.
• Remove Negative Items: Dispute inaccuracies on your credit report to improve your score. Negotiate with creditors to remove paid collections or late payments if possible.
• Increase Credit Limits: Requesting a credit limit increase can enhance your overall utilization ratio, especially if your spending habits stay the same.
• Use Experian Boost®: This feature lets you earn credit for timely utility and phone bill payments, helping to raise your score.
The combination of these actions will determine how quickly you see improvements. Remember, by paying on time, reducing debt, disputing inaccuracies, increasing credit limits, and leveraging tools like Experian Boost®, you can significantly enhance your credit score more efficiently.
Can I Realistically Get A Mortgage With A 635 Credit Score?
Yes, you can realistically get a mortgage with a 635 credit score. A score of 635 is in the “fair” credit range, meaning lenders may view you as a higher risk, which can impact your loan options.
To improve your chances, consider these key points:
• Pre-Approval: Apply for pre-approval to understand your budget and avoid surprises.
• Strong Financials: Demonstrate stable income and employment. Lenders prefer steady jobs and enough income to cover mortgage payments.
• Larger Down Payment: Be ready to provide a larger down payment, which reduces lender risk.
• Explore FHA Loans: Look into FHA loans, as they offer more lenient credit requirements. You can qualify with a minimum score of 580, with better terms for higher scores.
• Different Lenders: Remember that each lender has distinct criteria. One may approve your mortgage while another may not, even with the same credit score.
Additionally, assess your overall financial health. Factors like debts and monthly expenses matter significantly. Presenting a strong financial profile increases your chances of approval, despite your credit score.
At the end of the day, you can pursue a mortgage with your credit score by preparing well, exploring different options, and ensuring your financial situation appears robust.
Can I Get A Personal Loan With A 635 Credit Score?
Yes, you can get a personal loan with a 635 credit score. This score is generally considered "fair" on the FICO scale, meaning you likely qualify for several loan options. However, since your score isn't "good" or "excellent," expect higher interest rates compared to borrowers with better credit.
When you apply for a loan, lenders evaluate your creditworthiness, which includes your score and borrowing history. To boost your chances of approval, maintain strong qualifications like stable income and a solid employment history. This assurance is important, as a 635 score may categorize you as a higher-risk borrower.
Different lenders have varying requirements, but many consider scores in your range for personal loans. Compare offers from multiple lenders to secure the best terms. Some may even have lower minimum credit score requirements, giving you more choices.
Lastly, understand that a 635 credit score can still qualify you for a personal loan. Focus on improving your financial profile, and explore various lender options to find a suitable loan that meets your needs.
Can I Buy Or Lease A Car With A 635 Credit Score?
You can buy or lease a car with a 635 credit score, but you may face some challenges. Most lenders prefer scores over 661 for better terms. With a 635 score, you will likely encounter higher interest rates and may need a larger down payment.
When it comes to leasing, lenders consider your credit score along with factors like income and employment history. You might get approved for a lease, but expect higher monthly payments-possibly $10 to $125 more than someone with a better score.
Consider these tips to improve your chances:
• Look for credit unions or specialized lenders that may offer better deals.
• Show your reliability with consistent income and a good payment history.
• Work on boosting your credit score before applying for a loan or lease.
Leasing focuses more on the vehicle's depreciation and interest rates. If leasing feels difficult at your credit score, buying a car may be a simpler option, though it requires careful financial planning.
Finally, remember that while you can still buy or lease with a 635 credit score, improving your credit score or exploring specialized lenders will help you secure better terms and lessen the financial strain.
Credit Card (Secured Or Unsecured) Options With A 635 Credit Score?
With a credit score of 635, you have options for both secured and unsecured credit cards. Unsecured options may be limited, but here are some you can consider:
1. Unsecured Credit Cards:
• Credit One Bank® Platinum Visa® for Rebuilding Credit: This card is available for those with bad credit. You earn 1% cash back on select purchases, but it comes with an annual fee.
• Fortiva® Mastercard® Credit Card: This card is designed for individuals with lower credit scores, offering a modest credit limit to help you rebuild credit.
2. Secured Credit Cards:
• Discover it® Secured Credit Card: This card requires a security deposit but offers cash back on purchases and has no annual fee.
• Capital One Quicksilver Secured Cash Rewards Credit Card: This option provides 1.5% cash back on all purchases and has no annual fee.
Secured cards are generally easier to obtain and can help you build your credit over time. As your score improves, you may qualify for better unsecured options. Big picture – focus on timely payments to boost your credit score and explore these options to enhance your financial future.
Should I Become An Authorized User With A Fair Credit Score?
Becoming an authorized user with a fair credit score can be a smart move. It lets you leverage the positive credit history of the primary cardholder, which can boost your score. A 2018 study showed that individuals with fair credit often increase their score by nearly 11% within just three months of becoming an authorized user.
Choose a cardholder wisely. If they consistently make on-time payments and keep low credit utilization, your score can significantly improve. However, if the primary cardholder misses payments or has high balances, it might harm your score too.
As someone with a fair credit score, you benefit from this status by adding to your credit history length, which impacts 15% of your FICO® score. This can lead to a substantial increase, especially if your score is lower to begin with.
Before you proceed, confirm that the credit card issuer reports authorized user accounts to the credit bureaus. Not all do, so this is a crucial step. Being strategic about your selection can lead to positive results for your financial health.
Overall, if you decide to become an authorized user, choose a responsible cardholder and ensure proper reporting to boost your credit score effectively.
Which Negative Marks On My Credit Report Affect My 635 Score?
Negative marks on your credit report can significantly affect your 635 credit score. Here are the types of derogatory marks that impact your score:
• Late Payments: Missing a payment stays on your report for about 7.5 years. The longer you are late, the more it hurts your score.
• Account Charge-Offs: If a lender charges off an account due to non-payment, it negatively affects your score for 7 years.
• Collections: When an account goes to collections, it can damage your score for up to 7 years.
• Repossessions: If a lender seizes an item due to unpaid loans, this mark stays for 7 years.
• Bankruptcy: Chapter 7 bankruptcies can impact your score for up to 10 years, while Chapter 13 stays for 7 years.
• Foreclosures: Losing your home can negatively affect your score for 7 years.
These marks signal to lenders that you are a higher risk, making it harder for you to obtain credit or resulting in higher interest rates. It's crucial to address any inaccuracies on your report by disputing them, as they can harm your score unnecessarily.
As a final point, improving your credit habits can gradually lessen the impact of these marks on your score. Monitor your credit report regularly to stay informed and take charge of your financial health.
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. By negotiating, you can settle with creditors for less than what you owe, which reduces your overall debt burden. However, it's essential to understand how this may affect your credit score.
When you settle a debt, it appears as "settled" instead of "paid in full." This can lower your score more than paying off debts entirely. Accounts marked as settled remain on your credit report and can still affect your score, but they help prevent further damage from missed payments.
To negotiate effectively, follow these steps:
• Contact your creditor directly to discuss a reduced payment plan.
• Propose a lump sum payment to settle your debt for less than the total owed.
• Always get a confirmation letter outlining the terms before making any payment.
If negotiating feels overwhelming, consider reaching out to a nonprofit credit counseling agency. They can assist you in managing your debts while looking out for your credit score.
Ultimately, while negotiating can help you lessen your debt, paying the full amount is better for your credit health if you're able to do so. Assess your financial situation and consider the long-term effects on your credit report before settling. To put it simply, negotiate if you need to, but prioritize full payments when possible, and focus on making consistent, on-time payments moving forward.
Best Site To Monitor My Credit Report?
To monitor your credit report effectively, you should use WalletHub. WalletHub offers daily updates to your full credit report for free, allowing you to stay on top of your credit situation continuously. This helps you quickly spot any changes or potential issues.
You can also consider Credit Karma. It provides access to two free credit reports and daily monitoring features. Experian is another solid choice, giving you your FICO score and a free credit report for one-time checks.
Remember, you’re entitled to a free annual credit report from Equifax, Experian, and TransUnion through AnnualCreditReport.com, but this is only once a year. Using services like WalletHub or Credit Karma enables you to monitor your credit more frequently without additional costs.
Always review the features and limitations of each service. Some might charge for extra features like identity theft protection or premium support. Make sure you read the fine print before signing up.
In short, for the best site to monitor your credit report, consider WalletHub for continuous updates and Credit Karma for periodic checks. These services empower you to manage your credit score effectively.
Should I Consider A Credit Builder Loan W/ Fair Credit?
Considering a credit builder loan with fair credit is a wise decision. This type of loan helps you improve your credit score by enabling you to make regular, on-time payments. With a 635 credit score, which is classified as fair, a credit builder loan can assist in boosting your score.
These loans usually don’t require a good credit score for approval. Lenders often look at your income and employment history instead, making these loans accessible for those with fair credit. Remember, your payment history has a significant impact on your credit score. By making timely payments, you can positively affect your score.
Yet, you should proceed with caution. Missing payments can further harm your score. Some credit builder loans may also have upfront fees or higher interest rates. It’s crucial to compare different options before applying. Additionally, confirm that the lender reports your payment history to all major credit bureaus. This ensures you make the most out of the loan.
To finish, evaluate your financial situation carefully. If you can handle the payments without strain, considering a credit builder loan can be a great step towards improving your credit score.
Is A 635 Credit Score Different Between Fico And Vantage
Yes, a 635 credit score can differ between FICO and VantageScore systems. Both scales range from 300 to 850, but they assess creditworthiness using different criteria and methods.
FICO scores focus on five key categories: payment history, amounts owed, credit history length, types of credit in use, and new credit. Each category holds a specific weight that impacts your overall score. A 635 FICO score typically indicates fair credit, which may influence loan approvals and interest rates.
In contrast, VantageScore organizes credit information into six categories with different emphasis. For example, it rewards you for paying off balances fully each month, unlike FICO. A 635 VantageScore also indicates fair credit, but lenders may interpret it differently depending on which model they prefer.
Given these differences, your 635 score may be viewed more or less favorably based on the scoring model a lender uses. Understanding which score potential creditors check when applying for loans or credit is crucial.
In essence, be aware that your 635 score can reflect differently between FICO and VantageScore, impacting your access to credit. Stay informed to navigate your credit journey effectively.
Does A 635 Credit Score Affect My Chances Of Renting An Apartment?
A 635 credit score affects your chances of renting an apartment. Many landlords consider this score "fair," limiting your rental options. Typically, landlords prefer scores above 650. In competitive markets, they may even require scores above 740.
However, not all hope is lost. Some landlords may overlook a lower score if you show strong financial stability, like a consistent income or a good rental history. Other factors, such as location and building type, also play important roles. In areas with lower demand, landlords may accept lower scores.
Remember, landlords assess other parts of your application, including income verification and rental history. If your credit score is below the average required in your area, consider improving it before applying. You might also explore options like having a co-signer or offering a larger security deposit to reassure landlords.
To wrap up, focus on strengthening your application by showcasing your financial stability and exploring options like co-signers or larger deposits. By taking these steps, you can improve your chances of successfully renting an apartment despite a 635 credit score.
Can A Credit Repair Company Actually Boost My 'Fair' Score
Yes, a credit repair company can potentially boost your 'fair' credit score. These companies work by disputing inaccurate information on your credit report, which can lead to an improved score. If you find mistakes in your credit report, a credit repair company can save you time by managing the dispute process.
However, it’s important to understand that these companies cannot remove accurate negative information. For example, if you have a correctly reported late payment, no company can erase it. You can dispute inaccuracies on your own, often at no cost.
When you choose a credit repair company, make sure it’s legitimate. Avoid scams by looking for companies that transparently explain their services and fees.
If you decide to go this route, remember that improving your credit score also relies on your habits. You should focus on making timely payments and managing your credit utilization effectively.
On the whole, consider utilizing a credit repair company if you spot inaccuracies, while also committing to positive financial habits that lead to a better score.