Credit Score of 640: Good or bad?
A credit score is a number with three digits (created by looking at a wide range of elements) that allow lenders to gauge a person’s credit worthiness. This post focuses on 640 credit score. We’ll look at several things, for instance what you can do with that score and if it’s bad or good.
What is a Good Credit Score in the US?
The most widely-used credit scoring model that helps lenders determine your creditworthiness is the FICO® Score. This model has scores ranging from 300 to 850.
• 800 or above is considered to have “exceptional” credit score.
• 740-799 are considered “very good” credit scores.
• 670-739 are considered “good” credit scores.
• 580-669 are considered “fair” credit scores.
• 579 is considered a “poor” credit score.
Most lenders consider a FICO® score of 703 “good”. In the second quarter of 2019, around 21% of Americans registered a score that lay in the “good” category. On the other hand, those who had a FICO® score of 703 or more were about 58%.
Can 640 Credit Score Get Mortgage?
A significant number of Americans normally have credit problems when faced with life’s issues such as loss of job, disease, a lack of credit, or even a global pandemic. In many cases it takes a while to recover, and this means postponing the buying of a residence.
Apparently, waiting isn’t the best strategy for some people – they may have poor credit but are determined to own a home.
All hope is not lost though. With a bad credit, one can still acquire a mortgage. And there are other things you can do if you’re in that state. The only downside is that it’s not cheap.
How to Increase Credit Score of 640?
Dispute Negatives: If you have evidence that your credit report’s negative information is false (or that there’s lack of the necessary documentation for the source of information), you can challenge the record and get it removed or corrected.
Pay Off Collections Accounts: Your Vantage Score 3.0 credit score will no longer be affected when you reduce your collection account’s balance to zero.
Reduce Utilization: Each month, strive to utilize no more than 30% of the credit available on your credit card accounts. Some things you can do to decrease credit utilization include paying several times per month, making bigger payments and spending less.
Pay On Time: The most vital credit score element is payment history. Not delaying monthly payments provides the borrower with a good track record and shows responsibility on their part. Usually, late payments (even a single one) negatively affect your credit score, especially if you’re looking to improve it.
640 Credit Score Personal Loan
Keep in mind that only a few lenders give loans to borrowers with “fair” credit. This is because many lenders see it as a greater risk. Nonetheless, there are numerous lenders who’d accept scores in the low 600s range. Note that the interest rates charged will probably be higher.
Before you apply, identify lenders that have fair credit scores. You also need to look for lenders who provide pre-qualification. The benefit of prequalification is it allows you share information with the lender without causing a hard credit check. This way, you credit score doesn’t go down temporarily. What’s more, it gives you the power to check if a specific lender can give you a loan.
Mortgage rate for 640 credit score
Get the latest mortgage rates for your credit score, below.