Your score falls within the range of scores, from 580 to 669, considered Fair. A 631 FICO® Score is below the average credit score.
Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications. Other lenders that specialize in "subprime" lending, are happy to work with consumers whose scores fall in the Fair range, but they charge relatively high interest rates and fees.
17% of all consumers have FICO® Scores in the Fair range (580-669)(Video) Highmark CiBil Score को कैसे Increase करें | TransUnion CIBIL, Experian, EQUIFAX किसका मान्य होता है
Approximately 27% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.
How to improve your 631 Credit Score
Think of your FICO® Score of 631 as a springboard to higher scores. Raising your credit score is a gradual process, but it's one you can begin right away.
74% of U.S. consumers' FICO® Scores are higher than 631.
You share a 631 FICO® Score with tens of thousands of other Americans, but none of them has that score for quite the same reasons you do. For insights into the specific causes of your score, and ideas on how to improve it, get copies of your credit reports and check your FICO® Score. Included with the score, you will find score-improvement suggestions based on your unique credit history. If you use those guidelines to adopt better credit habits, your score may begin to increase, bringing better credit opportunities.
From Fair to anywhere: Raising your credit score
A FICO® Score in the Fair range typically reflects credit-management problems or mistakes, such as multiple instances of payments that were missed or paid 30 days late. Consumers with more significant blots on their credit reports, such as foreclosures or bankruptcies, may also see their FICO® Scores rise from the Very Poor range (300-579) into the Fair range once several years have passed after those events.
The credit reports of 42% of Americans with a FICO® Score of 631 include late payments of 30 days past due.
If you examine your credit report and the report that accompanies your FICO® Score, you can probably identify the events that lowered your score. As time passes, those events' negative impact on your credit score will diminish. If you're patient, avoid repeating past mistakes, and take steps that can help build up your credit, your credit scores will likely begin to increase.
Past deeds (and misdeeds) feed your credit score
Credit-scoring systems such as FICO® use information compiled in your credit reports to calculate your score. More recent events in your credit history tend to count more than older activities and, as with any type of analysis, some kinds of information carry more weight than others. Knowing which activities matter most can help you prioritize the steps to take when working toward a better credit score:
Late and missed payments are among the most significant factors to your credit score. More than one-third of your score (35%) is influenced by the presence (or absence) of late or missed payments. Lenders want borrowers who pay their bills on time, and individuals who have missed payments are statistically more likely to default (go 90 days past due without a payment) than those who pay their bills on time. If late or missed payments are part of your credit history, you can do yourself and your credit score a favor by developing a routine for paying your bills promptly.
Utilization rate on revolving credit is responsible for nearly one-third (30%) of your credit score. Utilization, or usage rate, is a technical way of describing how close you are to "maxing out" your credit card accounts. You can measure your utilization on an account-by-account basis by dividing each outstanding balance by the card's spending limit, and multiplying by 100 to get a percentage. You can also calculate your total utilization rate by dividing the sum of all balances by the sum of all spending limits.
|Balance||Spending limit||Utilization rate (%)|
Most experts agree that utilization rates in excess of 30%— on individual accounts and all accounts in total—tend to lower credit scores. The closer any of these utilization rates gets to 100%, the more it hurts your credit score.
Age is your friend. All other factors being the same, the longer you've been a user of credit, the higher your credit score is likely to be. There's not much that can be done about that if you're a new borrower, and it also doesn't help much if your recent credit history is marred by late missed payments or high utilization rates. If you manage your credit carefully and stay timely with your payments, however, your credit score will tend to increase with time. Length of credit history is responsible for as much as 15% of your credit score.
Your total debt and its composition are responsible for about 10% of your credit score. The FICO® credit scoring system tends to favor individuals with multiple credit accounts, consisting of a mix of installment loans (e.g., car loans, mortgages and student loans, with set monthly payments and fixed payback periods) and revolving credit (accounts such as credit cards that enable you to borrow against a spending limit and make payments of varying amounts each month).
Credit applications and new credit accounts typically have short-term negative effects on your credit score. When borrowers apply for new credit or take on additional debt, they assume greater risk of being able to pay their bills. Credit scoring systems like FICO® typically cause scores to dip a bit when that happens, but scores will typically rebound within a few months as long as you keep up with all your payments. New-credit activity can contribute up to 10% of your overall credit score.
Public records such as bankruptcies have severe negative impacts on your credit score if they appear on your credit report. Because they do not appear in every credit report, these entries cannot be compared to other credit-score influences in terms of percentage, but they can eclipse all other factors and severely lower your credit score. A bankruptcy, for instance, can remain on your credit report for 10 years, and may effectively prevent you from getting credit for much or all of that time.
Improving Your Credit Score
Fair credit scores can't be made into exceptional ones overnight, and bankruptcies, foreclosures and some other negative issues that contribute to Fair credit scores only resolve themselves with the passage of time. But no matter the cause of your Fair score, you can start handling credit more, which can lead in turn to credit-score improvements.
Seek a secured credit card. A secured card can benefit your credit score, even if you don't qualify for traditional credit cards. Once you've confirmed that the lender reports card activity to the national credit bureaus, you put down a deposit in the full amount of your spending limit—typically a few hundred dollars. When you use the card and make regular payments, those activities will be recorded in your credit files. And as long as you keep your usage rate on the card below about 30%, and stay on schedule with your monthly payments, they'll help you build stronger credit.
Consider a credit-builder loan. As the name implies, these are specialty loans designed to help build or shore up borrowers' credit profiles, by demonstrating the ability to make regular monthly payments. When you take out one of these loans, the credit union places the money you've borrowed in a savings account that generates interest. Once you've paid off the loan, you get the cash and the interest it has accrued. It's a neat savings tool, but the real payoff comes as the credit union reports your payments to the national credit bureaus, which can lead to credit-score improvements. (Double-check with the lender to make sure they report activity to all three national credit bureaus before you apply for a credit-builder loan.)
Consider a debt-management plan. A debt-management plan (DMP) can be helpful to borrowers who find themselves overextended and unable to keep up with credit payments. Working in conjunction with an authorized credit-counseling agency, you negotiate a manageable repayment schedule, effectively closing all your credit accounts in the process. This is a major step that can seriously harm your credit score in the near-term, but it's less damaging than bankruptcy and can eventually give you a clean start on rebuilding your credit. Even if a DMP isn't for you, a good non-profit credit counselor (as distinct from credit-repair company) can help you find strategies for building up your credit.
Pay your bills on time. If you could do only one thing to improve your credit score, nothing would help more than bringing overdue accounts up to date, and avoiding late payments as you move forward. Do whatever you can to remind yourself to pay the bills on time: Use automatic payments, set calendar alarms, or just write yourself notes and pin them where's you'll see them. Within a few months you'll train yourself in habits that promote higher credit-scores.
Avoid high credit utilization rates. Credit utilization, or debt usage, is the basis for about 30% of your FICO® Score. Keep your utilization rate below about 30% can help you avoid lowering your score.
Among consumers with FICO® credit scores of 631, the average utilization rate is 67.9%.
Try to establish a solid credit mix. You shouldn't take on debt you don't need, but prudent borrowing, including a combination of revolving credit and installment debt, can be beneficial to your credit score.
Learn more about your credit score
A 631 FICO® Score is a good starting point for building a better credit score. Boosting your score into the good range could help you gain access to more credit options, lower interest rates, and fewer fees. You can begin by getting your free credit report from Experian and checking your credit score to find out the specific factors that impact your score the most. Read more about score ranges and what a good credit score is.
What score does Experian consider good? ›
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750.Is a credit score of 631 good or fair? ›
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.What kind of credit score is 631? ›
Your score falls within the range of scores, from 580 to 669, considered Fair. A 631 FICO® Score is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.What can I get approved for with a 630 credit score? ›
As someone with a 630 credit score, you have just crossed over into the “fair” territory of credit score bands. You can qualify for financial products, like a mortgage or car loan, but you will likely pay higher interest rates than someone with better credit.Do banks look at Experian score? ›
While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage: FICO® Score 2 (Experian) FICO® Score 5 (Equifax)Is Experian a real credit score? ›
Experian is one of the three major credit bureaus, along with Equifax and TransUnion. These companies compile information about your credit into reports that are used to generate your credit scores. Credit Karma isn't a credit bureau, which means we don't determine your credit scores.Can I buy a house with 631 credit score? ›
Conventional Loan Requirements
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.
Can I get an auto loan with an 631 credit score? The short answer is yes, but you're likely to get a significantly higher-than-average interest rate. To put it into perspective, as of November 2022, the typical borrower with prime credit (720 or higher FICO score) got an APR of 5.34% on a 60-month new auto loan.Is 631 a good credit score TransUnion? ›
What is a good credit score with TransUnion? The credit reference agency, TransUnion, provides the data TotallyMoney uses to build your Free Credit Report. Their credit scores are out of 710, and they define a good credit score as anything that's 604 or more.What raises credit score? ›
Factors that contribute to a higher credit score include a history of on-time payments, low balances on your credit cards, a mix of different credit card and loan accounts, older credit accounts, and minimal inquiries for new credit.
What is a credit score of 613 considered? ›
A FICO® Score of 613 places you within a population of consumers whose credit may be seen as Fair. Your 613 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.What is the average credit score? ›
Credit scores help lenders decide whether to grant you credit. The average credit score in the United States is 698, based on VantageScore® data from February 2021. It's a myth that you only have one credit score. In fact, you have many credit scores.How to get your credit score from 630 to 700? ›
- Pay on Time, Every Time. ...
- Reduce Your Credit Card Balances. ...
- Avoid Taking Out New Debt Frequently. ...
- Be Mindful of the Types of Credit You Use. ...
- Dispute Inaccurate Credit Report Information. ...
- Don't Close Old Credit Cards.
Your score falls within the range of scores, from 580 to 669, considered Fair. A 633 FICO® Score is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.How to raise a 630 credit score? ›
- Make your payments on time. ...
- Set up autopay or calendar reminders. ...
- Don't open too many accounts at once. ...
- Get credit for paying monthly utility and cell phone bills on time. ...
- Request a credit report and dispute any credit report errors. ...
- Pay attention to your credit utilization rate.
Bottom Line: Is Experian Safe to Use? Experian is trusted by millions of consumers and businesses and is safe to use. Their free and premium services are readily available but with several layers of protection to shield your information from fraudsters.Which credit score is most used? ›
FICO ® Scores are the most widely used credit scores—90% of top lenders use FICO ® Scores. Every year, lenders access billions of FICO ® Scores to help them understand people's credit risk and make better–informed lending decisions.How do I find out my real credit score? ›
- Check your credit card, financial institution or loan statement. ...
- Purchase credit scores directly from one of the three major credit bureaus or other provider, such as FICO.
- Use a credit score service or free credit scoring site.
Experian's advantage over FICO is that the information it provides is more thorough than a simple number. A pair of borrowers could both have 700 FICO scores but vastly different credit histories.Is Experian or Credit Karma better? ›
Credit Karma will provide those, as well as regular alerts of any issues that affect your credit. But, if you're looking for a higher level of credit monitoring, and you prefer getting it from one of the three major credit bureaus, Experian should definitely be your first choice.
What's better Equifax or Experian? ›
2 Experian has a slight edge over Equifax because it tends to track recent credit searches more thoroughly. Experian breaks down a credit report into sections, which include the following: Personal information including past addresses. Employment.What is the poorest credit score? ›
- Very Poor: 300-499.
- Poor: 500-600.
- Fair: 601-660.
- Good: 661-780.
- Excellent: 781-850.
- Lower your credit utilization rate. The fastest way to get a credit score boost is to lower the amount of revolving debt (which is generally credit cards) you're carrying. ...
- Ask for late payment forgiveness. ...
- Dispute inaccurate information on your credit reports. ...
- Add utility and phone payments to your credit report.
- Pay credit card balances strategically.
- Ask for higher credit limits.
- Become an authorized user.
- Pay bills on time.
- Dispute credit report errors.
- Deal with collections accounts.
- Use a secured credit card.
- Get credit for rent and utility payments.
In general, you'll need a credit score of at least 600 to qualify for a traditional auto loan, but the minimum credit score required to finance a car loan varies by lender. If your credit score falls into the subprime category, you may need to look for a bad credit car loan.What can I do with a credit score of 631? ›
Credit Rating: 631 is considered a bad credit score. Borrowing Options: Most borrowing options are available, but the terms are unlikely to be attractive. For example, you could borrow a small amount with certain unsecured credit cards or a personal loan for damaged credit, but the interest rate is likely to be high.How accurate is credit karma? ›
Here's the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.Why is my Experian score so much higher? ›
This is due to a variety of factors, such as the many different credit score brands, score variations and score generations in commercial use at any given time. These factors are likely to yield different credit scores, even if your credit reports are identical across the three credit bureaus—which is also unusual.Why is my Experian score so much lower? ›
Credit scores can decrease for a number of reasons, including high balances, missed payments and closed accounts. You can review recent factors that may be affecting your credit score by checking your credit score for free with Experian.Do banks use TransUnion or Equifax? ›
In any case, the card issuer can pull your credit report with any of the three major credit bureaus — or even all of them. This means that your credit report could come from Equifax, Experian and TransUnion or any combination of these bureaus.
How can I raise my credit score 50 points fast? ›
To raise your credit score by 50 points, you can dispute errors on your credit report, pay your bills on time and lower your credit utilization. Credit scores rise and fall based on the contents of your credit report, so adding positive information to your report will offset negative entries and increase your score.How can I raise my credit score 40 points fast? ›
- Check for errors on your credit report. ...
- Remove a late payment. ...
- Reduce your credit card debt. ...
- Become an authorized user on someone else's account. ...
- Pay twice a month. ...
- Build credit with a credit card.
It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.Can I buy a car with a 613 credit score? ›
You should be able to get a car loan with a 613 credit score without a problem. Truthfully, people can get a car loan with almost any credit score—the difference will be what kind of interest rate you can secure. A score of 613 may get you an interest rate of between 11.92 percent and 4.68 percent on a new car loan.Can you buy a house with a 613 credit score? ›
Generally speaking, you'll need a credit score of at least 620 in order to secure a loan to buy a house. That's the minimum credit score requirement most lenders have for a conventional loan. With that said, it's still possible to get a loan with a lower credit score, including a score in the 500s.Can I get a loan with 613 credit score? ›
A 613 credit score can be a sign of past credit difficulties or a lack of credit history. Whether you're looking for a personal loan, a mortgage or a credit card, credit scores in this range can make it challenging to get approved for unsecured credit, which doesn't require collateral or a security deposit.Is Experian more accurate than FICO? ›
Experian's advantage over FICO is that the information it provides is more thorough than a simple number. A pair of borrowers could both have 700 FICO scores but vastly different credit histories.Is TransUnion or Experian more accurate? ›
Although Experian is the largest credit bureau in the U.S., TransUnion and Equifax are widely considered to be just as accurate and important. When it comes to credit scores, however, there is a clear winner: FICO® Score is used in 90% of lending decisions.Is 670 Experian good? ›
A FICO® Score of 670 falls within a span of scores, from 670 to 739, that are categorized as Good. The average U.S. FICO® Score, 714, falls within the Good range.Is Experian The most important score? ›
A: As a general matter, no one credit bureau report is “more important” than the others. In today's economic environment, they are all vitally critical to your personal finances.