By CreditNinja Reviewed by Matt Mayerle
Modified on May 15, 2024

Consumers with a 605 credit score are typically said to have “fair” credit.

Generally, anything between the range of 580 and 699 is considered a fair credit score.

Consumers with fair credit scores may have trouble finding approval for certain loan products or may have to deal with higher interest rates and increased fees when they are approved. 

Thankfully, there are steps people can take to start improving their credit history. If that sounds interesting to you, you’ve come to the right place! Keep reading to learn more about how credit scores work and what you can do to get a better credit score and reap the benefits!

Key Takeaways for a 605 Credit Score

Overview of Your
Credit Rating

605 is a fair credit score. Since this score is on the lower end, consumers with a 605 credit score are often considered a high lending risk.

Borrowing Options With a
605 Credit Score

Consumers with a 605 credit score may have trouble finding approval for traditional loan products. The best way to find approval and get better deals is to work on improvement.

Improving a 605
Credit/FICO Score

The most important thing people can do to improve their credit is work on their payment history. Avoiding bad debts and lowering credit utilization will also help.

Is a 605 Credit Score Good?

605 isn’t one of the best credit scores out there. Since 605 falls within the “fair” credit score range, consumers with this kind of score are often referred to as “subprime” consumers. Subprime consumers often have a poor credit history and may have trouble keeping up with payments on loans or other bills. In fact, 28% of consumers in the “fair” credit score range are predicted to be delinquent on some kind of due payment in the future.1

How Do Credit Scores Work?

Your credit score is a three-digit number that indicates your creditworthiness to lenders and other financial providers. Based on the most recent credit scoring models, credit scores are broken down into the following categories: 

Credit Score Range

Credit Score Rating

800 – 850

Excellent credit score

740 – 799

Very good credit score

670 – 739

Good, or average credit score

580 – 669

Fair credit scores

300 – 579

Poor credit score 

What Can You Get Approved for With a 605 Credit Score?

Finding a loan with a fair credit score may not be the easiest task. You’ll definitely want to research lenders and compare offers before you submit an application. Some loan types you may consider are: 

Personal Loans

A personal loan is a type of installment loan that consumers can use for just about any purpose. There are short-term personal loans that can work well for small financial emergencies, or long-term personal loans which may work well for debt consolidation or other expensive endeavors. 

Personal loan interest rates are often dependent on credit scores, meaning people with fair credit may have to deal with higher rates. But, there are bad credit lenders who offer products like credit builder loans which may help you secure a personal loan at competitive rates. 

Bank Loans

Consumers can also access personal loan products via a bank. However, not many banks are willing to work with people who have a lower credit score. And so, you may have a better chance of receiving approval for a personal loan when you go with a credit union instead. 

Credit Cards

Credit cards are a revolving line of credit consumers can use instead of taking out a loan. However, unless you have a strong handle on your spending habits, credit cards can pose a huge debt risk. Products like a secured credit card may help consumers with the cash they need without putting them at risk of acquiring unaffordable debt. 

Auto Loans

An auto loan is a type of secured loan people can use to purchase a vehicle. While finding an auto loan may be difficult with fair credit, consumers can improve their chances of finding a good deal by using the following tips: 

  • Contribute a larger down payment
  • Ask a friend or family member with good credit if they can cosign a loan with you
  • Purchase a vehicle that is less expensive 

Other Secured Loans 

Secured credit, like title loans, is another way consumers with lower credit scores can access loans. However, keep in mind that secured loans like car title loans typically come with very high-interest rates and short repayment terms. And, if you fail to repay the loan on time, you risk having your vehicle repossessed. So, you’ll want to have a good financial plan in place before you commit to a loan like this.  

Cash Advance Loans

If you need cash in a pinch you may be tempted to look into cash advance loans, such as payday loans. These types of loans typically have easy credit qualifications, meaning just about anybody can get approved. But, just like title loans, payday loans also usually come with higher rates and shorter terms. 

Products to Help Improve a 605 Credit Score

Check out a few products that can help improve your credit scores over time. 

Budgeting Apps

The key to boosting your credit score and maintaining it is to have a good handle on your budget. Budgeting apps can help you watch your spending, monitor your income, and stay on track with paying bills and reaching other financial goals. 

Some apps you can download today are: 

  • Goodbudget
  • YNAB (You Need a Budget)
  • PocketGuard
  • Empower Personal Dashboard
  • Honeydue
  • Oportun
  • Stash

Credit Monitoring

In addition to checking your credit report regularly, you can also enlist the help of professional credit monitoring services such as: 

  • Aura
  • LifeLock
  • IdentityGuard
  • myFICO
  • Kaspersky
  • Webroot Premium
  • Albert
  • Norton
  • McAfee
  • Zander

Credit Repair Companies

If the idea of organizing your finances seems completely overwhelming, consider working with a credit repair company to ease that burden. 

Some companies you can look into are: 

  • Credit Saint
  • The Credit People
  • Sky Blue
  • Safeport Law
  • The Credit Pros
  • Lexington Law
  • CreditRepair.com

Emergency Fund

If you don’t already have one, consider setting up a savings account or emergency fund. That way, if you run into financial emergencies, you have a monetary safety net instead of dealing with stress or having no other options besides sketchy quick cash loans

According to the certified financial planner, Ohan Kayikchyan, $1,000 is a good initial goal for a savings account, “It’s all about establishing that savings habit,” Kayichyan says.2

Benefits of Improving Your 605 Credit Score

Improving your credit scores can come with tons of awesome benefits like: 

  • Easier approval on auto loans and other new credit products 
  • Better insurance rates 
  • Higher credit limit on loans or credit cards 
  • Lower interest rates 
  • Special pre-approval offers

How to Improve Your 605 Score

Check out the following tips to help you improve your credit scores. 

Understand How Your Credit Reports Work 

Your credit report is an official record of your financial history as compiled by the three major credit bureaus, Experian, TransUnion, and Equifax

These reports will have information from the following financial categories: 

  • Payment history
  • Length of credit history
  • Credit mix
  • Debts 
  • Recent inquiries for new credit accounts 

Typically, you may receive a free credit report from each of the major credit reporting agencies at least once a year. However, you may want to check your credit reports more often than that. Being familiar with your most recent credit report can tell you how your financial decisions and spending are affecting your credit history in real time. You’ll also get a better idea of how likely you are to get approved for certain loan or credit card products. 

Make All Your Payments On Time 

One of the most important habits you can pick up to help improve your credit scores is making all your due payments on time. Paying back loans and other financial obligations regularly and on time is extremely important to lenders and financial institutions, which is probably why it is the most impactful factor that contributes to your credit score. Payment history makes up a whopping 35% of your total credit score! 

Don’t Spend Your Full Credit Limit Every Month

Just because you have a credit card doesn’t mean you have to spend your full credit limit each month. In fact, if you have a revolving line of credit like a credit card, try not to use it unless absolutely necessary. By having higher credit limits and lower balances, you’ll improve your credit utilization, which can show the credit bureaus that you are a financially responsible borrower. 

Prioritize Repaying Existing Debts 

Along with working on your credit utilization, you’ll also want to focus on lowering your debt-to-income ratio. You can do this simply by repaying your outstanding debts, such as credit card debt and balances on existing personal loans. You may also want to consider contributing more than just your minimum amount due. That way, you can pay off your debts faster and potentially save a little money on interest rate charges along the way. 

Avoid Applying For New Credit Accounts  

Lastly, try to avoid applications for new credit accounts, like credit cards or additional personal loans. Instead, work on repaying what you already owe and save yourself the hassle of acquiring even more debt. 

FAQs About 605 Credit Scores

Joint accounts, if managed well, can positively impact your credit score by adding a history of timely payments and increased credit mix to your report.

A credit freeze doesn’t directly affect your credit score but can safeguard against identity theft, preventing unauthorized accounts from damaging your credit further.

Regularly monitoring your credit score, such as monthly, allows you to track improvements and quickly address inaccuracies or fraudulent activities, which is crucial for scores in the fair range like 605.

What Interest Rate Can I Get With a 605 Credit Score?

Interest rates play a huge role in determining the total cost of any kind of funding. Before you apply for a loan or other financial product, think about what kind of rates you are likely to receive and how those will affect your monthly payments. 

Below is a breakdown of some popular loan types and what the interest rates may look like for consumers in the fair credit range:

Loan Type

Typical Interest Rate Range

Factors Influencing Interest Rate 

Impact of a 605 Credit Score

Personal Loan

5% – 36%

Credit score, income, loan amount, loan term.

Higher interest rates, potentially closer to the upper end of the range. Approval for lower amounts or with additional requirements (e.g., a cosigner).

Mortgage

2.5% – 7%

Credit score, down payment, loan term, fixed or adjustable rate.

May face higher interest rates and may require a larger down payment. Some lenders might require mortgage insurance.

Auto Loan

2.5% – 13%

Credit score, loan term, new or used vehicle.

Likely to receive interest rates towards the higher end of the range. May also face stricter loan terms.

Credit Card 

13% – 25%

Credit score, card type (standard, rewards, secured, etc.).

Approval for cards with higher interest rates and lower credit limits. Consideration for secured credit cards may be necessary.

Student Loan

2.75% – 12%

Loan type (federal vs. private), borrower’s credit score (for private loans).

Federal student loans have fixed rates and do not consider credit scores. Private loans will have higher interest rates, and approval might require a cosigner.

Disclaimer: The information provided in the table above is intended as a general guideline and may vary depending on individual lender policies and the specific circumstances of the borrower. Interest rates and loan approval chances can be influenced by factors beyond credit score, including market conditions and changes in federal rates.

Can I Buy a House With a 605 Credit Score?

Purchasing a home is probably one of the most extensive financial endeavors we’ll ever take. There are so many factors that go into buying a home, which may be more difficult to navigate when you have a fair credit score. Thankfully, there are special loan programs and products, like FHA loans, that may help people with a less-than-perfect credit history be able to purchase a home. 

What Are FHA Loans?

FHA loans are mortgages issued by the Federal Housing Administration (FHA) and insured by the U.S. Department of Housing and Urban Development (HUD). The goal of FHA loans is to assist people who may have lower credit scores in purchasing a home. 

An FHA loan can also come with other benefits, such as: 

  • Lower down payments
  • Lower closing costs
  • Easy credit qualification (the minimum credit score for FHA loans is about 580)

The FHA also offers a special Energy-Efficient Mortgage for people who want to implement energy-saving improvements to their homes. The FHA can also help senior citizens who already own their homes take advantage of its equity with a Reverse Mortgage.

Top 5 Resources for a 605 Credit Score

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