630 credit score: How good or bad is it?

by Stable MARK | Updated: July 10, 2022
Stable MARK content is free. When you purchase through referral links on our website, our partners compensate us. Advertiser Disclosure

Is your 630 credit score good? Many people don't know what a good credit score is. We want to inform you about the importance of a good credit score and what you can do to improve your credit rating.

Let’s get started to understand what it means, what you can get with a 630 credit score and how to improve it.

A 630 credit FICO score
Figure 1: 630 falls within the FICO credit score range concidered fair

17% of all consumers have credit scores that fall within the "Fair" range, which is between 580 and 669.

Is 630 a good credit score?

No definitive answer exists as to whether 630 is a good credit score. This is because what is considered a "good" credit score varies from person to person and situation to situation. Some people may consider any score above 630 to be good, while others may only consider a score of 700 or higher to be good.

There are a number of factors that contribute to whether or not a credit score is considered good. For example, the purpose of the credit score may play a role. Someone who is looking to get approved for a mortgage may have a different opinion of what constitutes a good credit score than someone who is trying to get a new credit card.

In general, however, a credit score of 630 is generally seen as being on the lower end of the spectrum. This means that there is room for improvement, but it is still possible to get approved for loans and lines of credit. With some work, it is possible to raise a credit score from 580 to 700 or higher.

83% of credit scores for U.S. consumers are higher than 630.

U.S. average FICO credit score by age - Q2 2019
Figure 2: U.S. average FICO credit score by age - Q2 2019. Source: Amex

It may be difficult for you to obtain a loan or a card

If you have a 630 credit score, it may be difficult for you to obtain a loan or credit card. This is because lenders view applicants with lower credit scores as higher-risk borrowers. As a result, you may be offered less favorable terms, such as a higher interest rate or a smaller loan amount.

While a 630 credit score is not good, it is not the worst score either. There are still some lenders who may be willing to work with you, so it's important to shop around and compare your options before making a decision.

About four out of ten Americans who have a FICO® Score of 630 have at least one late payment on their credit report.

What does a 630 credit score get you?

Credit Cards For 630 Credit Score

Suitable For
Mission Lane Visa® Credit Card
low annual fee
Mission Lane Visa® Credit Card
OpenSky® Secured Visa® Credit Card
low-interest credit-building
OpenSky® Secured Visa® Credit Card
Capital One Platinum Credit Card
no annual fee
Capital One Platinum Credit Card
Capital One QuicksilverOne Cash Rewards Credit Card
flat-rate cash back
Capital One QuicksilverOne Cash Rewards Credit Card
Mission Lane Cash Back Visa® Credit Card
up to 1.5 percent cash back
Mission Lane Cash Back Visa® Credit Card
Credit One Bank Wander® Card
Credit One Bank Wander® Card
Milestone® Mastercard®
fraud protection
Milestone® Mastercard®
Avant Credit Card
no penalty apr
Avant Credit Card
Indigo® Mastercard®
bankruptcy forgiveness
Indigo® Mastercard®
Upgrade Cash Rewards Visa®
low-interest and low cost
Upgrade Cash Rewards Visa®
Credit One Bank® Platinum X5 Visa®
rewards on internet, TV, and cellphone service
Credit One Bank® Platinum X5 Visa®
Table 1: What can you get with a 630 credit score
Item Does 630 credit score qualifies?
No annual fee credit card Yes
Credit card with 0% financing Yes
Favorite store’s credit card Yes
No-foreign-fee credit card Yes
Airline/Hotel credit card No
Initial credit card bonus No
Any credit card No
Apartment rental Maybe
Personal loan Maybe

The average credit card debt among consumers with a FICO® Score of 630 is $5,998.

The ground for your credit score

Your credit score such as the FICO Score is based on your history of managing debt, as recorded in your credit file. The scores are basically a summation of the way you've handled credit and bill payments. Good credit habits usually result in a higher credit score such as 650 credit score, while bad or erratic habits usually result in a lower score such as 600 credit score.

Here's a more detailed breakdown of the specific factors that influence your FICO® Score:

Public Information: Negative public records, like bankruptcies, on your credit report, can lower your credit score significantly.

Payment history: Accounts that are overdue or have missed payments can negatively impact your credit score. On the other hand, a history of making timely payments will improve your credit score. This is simple, and it is also the largest factor influencing your credit score, accounting for up to 35% of your FICO® Score.

Credit usage rate: The credit utilization ratio is determined by adding the balances of all revolving credit accounts and dividing that number by the total credit limit. For example, if an individual has a $4,000 balance on their credit card with a total credit limit of $10,000, then their credit utilization ratio would be 40%. It is generally accepted by most experts that maintaining a credit utilization ratio below 30% will help avoid lowering one's credit score. Credit usage itself is responsible for approximately 30% of an individual's FICO® Score.

Length of credit history: Credit scores usually improve the longer your credit history is. If you're new to credit, there's not much you can do about that except avoid bad habits and establish a track record of making payments on time and good credit decisions. Length of credit history can make up to 15% of your FICO® Score.

Total debt and credit: The FICO® Score is determined by a multitude of factors, one of which being the types of credit you have. This includes installment loans (loans with set payments and a repayment schedule) and revolving credit (accounts with a credit limit that you can borrow from and make variable payments on). The mix of credit you have can influence up to 10% of your FICO® Score.

Recent applications: When you apply for a loan or credit card, the lender will request your credit score and credit report. This is known as a hard inquiry and it can have a short-term negative effect on your credit score. As long as you continue to make timely payments, your credit score will rebound quickly from the effects of hard inquiries. Checking your own credit is a soft inquiry and it does not impact your credit score. Recent credit applications can account for up to 10% of your FICO® Score.

The average credit utilization rate (the amount of credit used compared to the amount of credit available) for consumers with FICO credit scores of 630 is 78.2%.

How to improve and rebuild your 630 credit score

It is possible to improve your credit score, but it will take some time and effort. If you have a 630 credit score, you can improve it by following some simple steps.

Do You Need Credit Repair?

by more serious issues

Credit Repair Companies

by minor issues

Do It Yourself

Seek a secured credit card: Having a secured card can help improve your credit score, as long as the lender reports the card activity to major credit bureaus. You put down a deposit, which is typically a few hundred dollars, for your spending limit. So, when you use the card and make regular payments, those activities will be on your credit history. If you keep your monthly usage below 30% and make timely payments, it will help you establish better credit.

Consider a credit-builder loan: If you're looking for a loan to help improve your credit score, a credit-builder loan could be a good option. With this type of loan, the money you borrow is placed in a savings account and accrues interest. Once you've paid off the loan, you get the money plus any interest that has accrued. This can be a helpful way to save money and also improve your credit score. Be sure to 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) may be helpful for borrowers who find themselves overextended and unable to keep up with credit payments. Working together with an authorized credit-counseling agency, you might negotiate a manageable repayment schedule, which would effectively close all your credit accounts in the process. This could be a major step that might seriously harm your credit score in the near-term, but it would be less damaging than bankruptcy and could eventually give you a clean start on rebuilding your credit. Even if a DMP isn't right for you, a good non-profit credit counselor (as distinct from a credit-repair company) could help you find strategies for building up your credit.

Pay your bills on time: If you want to improve your credit score, the best thing you can do is bring any past-due accounts current and avoid late payments in the future. To help remind yourself to pay on time, consider setting up automatic payments, calendar alarms, or simply leaving yourself notes in places where you'll see them. With a few months of practice, you can develop habits that will raise your credit score.

Avoid high credit utilization rates: It is beneficial for your credit score if you keep your balances low. Your "credit utilization ratio" is the percentage of your available credit that you are using at a given time. A lower number is better for your score. Credit utilization, or debt usage, is a factor that contributes to approximately 30% of your FICO® Score. Keeping your utilization rate below 30% can help you avoid lowering your score.

Evaluate your credit report: I would recommend that you frequently check your credit report. You are allowed to request one free report from each of the three credit reporting agencies annually. Ensure that there are no inaccuracies on your report that could lower your score for no reason. Obtain your credit report and take note of all negative aspects that are preventing your 630 score from increasing.

Dispute negative items: We suggest checking your credit report for errors and disputing any inaccuracies that you may find. You can customize and send dispute letters to the Bureaus in order to request the removal of negative items from your report.

Extra tips for improving your credit score

If necessary, work with a reputable credit counseling or repair service. If you have bad credit, there is no shame in seeking help from a professional service. Just be sure to choose a reputable company that will help you improve your score in a legitimate way.

It is beneficial to have a mix of different types of credit when applying for loans. Lenders feel more confident lending to someone who has demonstrated responsible borrowing habits with different types of debt, such as installment loans and revolving lines of credit.

It is highly recommend signing up for a credit monitoring service. By keeping an eye on your progress, you can spot any potential issues early on and avoid them before they cause any major damage.

Keep old accounts open even if you don't use them often.

Limit new applications for credit.

As a conclusion

A 630 FICO® Score is a good starting point for building a better credit score. You can get there by making your payments on time, keeping your balances low, and using credit responsibly. It may take some time and effort, but it's worth it to have a good credit score.

Benefits of improving your score to:

640 650 660 670 680

Drawbacks of worsen your score to:

620 610 600 590 580

Share this article

Stay On Top Of Industry Trends

By providing my email address, I agree to StableMARK.com’s Privacy Policy