A 625 credit score could indicate a past credit struggles or lack of credit history. Whether you are looking for a personal loan, a mortgage, or a credit card, credit scores in this range may make it difficult to be approved for unsecured credit, which does not require collateral or a deposit. The “Poor” range of scores, as determined by the Credit Karma data from 2021.
Is 625 a good credit score?
If your credit history includes signs of past credit struggles, like delayed or delinquent payments, accounts in collections, or no credit, you might have trouble getting approved for new credit. And, if you are approved, you may find the approval comes with higher interest rates and fees. Building up your credit score may be helpful. No particular credit score guarantees acceptance or better terms or offers.
Not only are there several credit scores calculated using data from several possible credit reports, but it is also not always clear what kind of score the creditor may decide to look at or what their criteria may be to approve. We suggest viewing your credit score as a guideline to help determine what lenders look at when checking your credit. Understanding the factors that go into your scores can help you know what ones you should be focused on to improve your overall credit picture in lenders’ eyes. Here’s what you need to know about building credit — and how to navigate a credit application while doing so.
What credit cards can I get with a credit score of 625?
Figuring out what exactly goes into your credit score can be tricky. With all of the different credit factors–payment history, for example, and the age and numbers of your accounts–that could go into every credit score, there is not just one way to build up your credit. The route that is best for you depends on your particular credit profile. Paths are determined by 2021 credit Karma data. But there are a few general principles you should focus on that will help you build credit over time, such as making at least the minimum payment on time and building up a positive payment history.
If you are still circling below 640, paying attention to these factors could be the big difference on the road to achieving fair credit (and beyond). It is a good idea to periodically review your credit report to ensure there are no errors or mistakes that may affect your score. It is also essential to check your statements to catch any potential signs of identity theft.
If you notice inaccuracies, you can dispute them directly with your credit reporting agency. Credit Karma immediately lets you make errors in your TransUnion reports, thanks to our Direct Dispute(TM) feature. Your payment history is a significant factor in your credit score. Paying your bills on time, each time, on accounts reported to the three major consumer credit bureaus helps you establish a positive payment history.
Call the lender immediately if you make a late payment and catch it before it is reported to a credit bureau. The lender might be able to help you work through the issue before your late charge is added to your report. But, once accurately reported, it may be hard to get a late fee removed from your credit report. Keeping the balances on your credit cards low may help with your credit utilization rate, which is the percentage of available credit you use at any given moment.
The general recommendation is to keep balances under 30% of your limit. It is an excellent general rule of thumb and a nice round number you can recite from memory. But if you can get away with keeping utilization below 30%, it is even better.
Carrying a balance on a card does not provide any benefit for credit-building, as long as you can afford to pay the entire balance each billing cycle. When it comes to credit-building strategies, the best thing to do is consistently charge your accounts, keeping your total owed below 30% of your credit limit. If possible, pay off the balance each month on the statement and on time to avoid incurring interest charges for these purchases.