A credit score is a three-digit number that rates your creditworthiness. FICO (Fair Isaac Corp) scores range from 300 to 850. The higher the score, the more likely you are to get approved for loans and for better rates.
It is based on your credit history, which includes information like the number accounts, total levels of debt, repayment history, and other factors.
There are a number factors that go into calculating your FICO credit score, including your repayment history, your debt utilization, the length of your credit history, your credit mix, and any new account openings.
A credit score can significantly affect your financial life. It plays a key role in a lender’s decision to offer you credit. Lenders are more likely to approve you for loans when you have a higher credit score, and are more likely to decline your loan applications when you have lower scores.
You can also get better interest rates when you have a higher credit score, which can save you money in the long-term.
- Excellent: 800–850
- Very Good: 740–799
- Good: 670–739
- Fair: 580–669
- Poor: 300–579
Who Calculates Credit Scores?
There are three major credit bureaus in the United States: Equifax, Experian, and TransUnion (These credit bureaus are also responsible for assigning a credit score to you). They each calculate your FICO score in different ways using the same information. Credit bureaus collect, analyze, and disburse information about consumers in the credit markets.
Can you get a Loan with a 621 Credit Score?
You aren’t likely to get a lender’s best rates on a personal loan without a good credit score, but a FICO score of 621 should allow you to qualify for one. This is especially true when it comes to personal lending marketplace like Upstart that specializes in loans for consumers with less-than-perfect credit histories.
With this credit score, you can get some loans at this range. You can be able to get a Home loan (FHA Loan), Personal loan, unsecured credit card and Auto loan.
If your credit score is a 621 or higher, and you meet other requirements, you should not have any problem getting a mortgage. Credit scores in the 620-680 range are generally considered fair credit. There are many mortgage lenders that offer loan programs to borrowers with credit scores in the 500s. Therefore, if you have a 621 or higher credit score, you should not be short on options.
How to Improve your 621 Credit Score?
Your low credit score will eventually increase from 621 to a decent (670-739) rating with consistent good credit behavior and practice. The following are a few strategies that could aid you in raising your credit score:
- Paying your bills on time
- Avoiding high credit utilization
- Debt management plan
- Credit builder loan
- Use a secured credit card
- Establish a credit mix
A 621 credit score is neither good nor bad. It falls between the two extremes. Given that it falls within the “Fair” credit score range, well-known credit scoring systems classify 621 scores as average.