By CreditNinja
Modified on March 18, 2024

A 630 credit score is fair. Fair credit scores are generally considered to be FICO Scores between 580 and 669.

A fair credit score is better than a bad score, but your financing options may still be limited.

Fair credit signifies to lenders that you pose a moderate credit risk. Borrowers within this credit category may have a few missed payments or high credit utilization rates. Improving a 630 credit score can help borrowers qualify for better terms and lower interest rates.

Key Takeaways for a 630 Credit Score

Overview of Your
Credit Rating

A borrower with a 630 score has fair credit. Fair credit borrowers are also referred to as subprime borrowers because their credit history shows signs of financial mismanagement, such as late payments or high amounts of debt.

Borrowing Options With a
630 Credit Score

While you may still be eligible for an installment loan, such as a mortgage or car loan, you may not get the best terms. Low rates and extended repayment plans are generally only offered to borrowers with good or excellent credit.

Improving a 630
Credit/FICO Score

You can improve a fair score over time by maintaining a good payment history and reducing your credit card debt. It may also be beneficial to use credit-building tools, such as secured credit cards and credit builder loans.

Is a 630 Credit Score Good?

A 630 credit score is fair, not good. A good FICO Score starts at 670, which is 40 points higher. Good credit can help borrowers qualify for better financial products and offers. By establishing good credit habits and reducing your personal debt, you could obtain a good credit score in due time!

What Can You Get Approved for With a 630 Credit Score?

Fair credit borrowers can get approved for different types of financial products. But before you submit a loan or credit application, it’s important to evaluate several key terms and factors to ensure you make an informed financial decision.



Why It’s Important

Interest Rate

The percentage of the loan amount or credit card balance that you’ll pay in interest, typically expressed as an annual rate (APR for credit cards).

Determines the cost of borrowing money. Lower rates mean lower costs over time.


Any additional charges associated with the loan or credit card, such as origination fees, annual fees, late payment fees, or foreign transaction fees.

Fees can add significantly to the cost of a loan or credit card. Understanding them helps avoid unexpected expenses.

Repayment Terms

The length of time you have to repay a loan or the payment terms for a credit card (e.g., minimum monthly payment).

Influences your monthly budget and the total interest paid over the life of the loan or credit card.

Credit Limit

The maximum amount you can borrow on a credit card.

Determines your spending limit and can impact your credit utilization ratio, which affects your credit score.

Grace Period

The period during which you can pay your credit card bill without incurring interest charges, typically from the end of a billing cycle to the payment due date.

Allows you to avoid interest charges if you pay your balance in full within this period.

Rewards and Benefits

Incentives offered by credit cards, such as cash back, points, travel rewards, or insurance.

Can provide significant value if aligned with your spending habits and needs.

Penalty APR

A higher interest rate that may apply if you make a late payment or violate other terms of your credit card agreement.

Understanding the consequences of late payments can help you avoid costly penalties.

Balance Transfer Options

Terms under which you can transfer a balance from one credit card to another, often at a lower interest rate.

Can be a strategy to save on interest charges if you’re paying down high-interest debt.

Loan Security

Whether the loan is secured (requiring collateral) or unsecured.

Secured loans may offer lower interest rates but come with the risk of losing your collateral if you default.

Prepayment Penalties

Fees charged for paying off a loan early.

Important to know if you plan to pay off your loan ahead of schedule to save on interest.

Disclaimer: Before applying for a loan or credit card, it’s crucial to read the fine print and understand all the terms and conditions. 

Personal Loans

Personal loans generally have flexible approval requirements because most online lenders offer personalized terms. A personal loan can range from as little as $100 up to several thousand, depending on your creditworthiness, income, and the lender. But keep in mind that you may have to spend time making comparisons to find the best loan offer for your financial situation.   

Bank Loans

If you have fair credit, you may not qualify for certain bank loans. Banks are known for having strict approval requirements, such as good credit. While it’s not impossible to qualify for a bank loan, you should not expect attractive terms or rates. If you need a lot of money for a car repair or home improvement project, you may have to offer collateral

Credit Cards

Qualifying for credit card accounts with fair credit is possible with certain lenders, but it may be better to apply for secured cards instead. Secured credit accounts can help you build good credit habits that improve your credit scores over time. But in order to get a secured credit card, you must provide an upfront security deposit that doubles as your credit limit. Timely payments and responsible credit management can reflect positively on your credit score over time. 

These are some of the best secured credit cards for building credit:

  • Discover it® Secured Credit Card
  • Capital One Quicksilver Secured Cash Rewards Credit Card
  • Bank of America® Customized Cash Rewards Secured Credit Card
  • Chime Secured Credit Builder Visa® Credit Card
  • OpenSky® Plus Secured Visa® Credit Card

Car Loans

Car loans may be easier to get with a low credit score because the loan is secured by the vehicle. But be prepared to pay higher interest rates than someone with a good credit history. According to Experian’s State of the Automotive Finance Market report, the average auto loan interest rate for new cars in 2023 was 7.03%.¹ If you have low or fair credit, you will likely get a higher rate. You can reduce the interest costs by making a larger down payment or opting for a cosigner loan.   

Products To Help Improve a 630 Credit Score

These are a few products that can help you improve your current credit score: 

Debt Consolidation Loans 

A debt consolidation loan is an installment loan that allows you to merge multiple high-interest debts into a single payment. Consolidating debt can help you organize your finances and potentially reduce your interest costs if you can secure a better rate than you currently have. According to CNBC, 39.7% of high-score borrowers use personal loans to consolidate debt.²   

Credit Building Loans

A credit builder loan can help you build a good credit history that boosts your credit score. Lenders will set up a savings account with the loan amount, and you will make monthly payments toward the loan. 

Lenders usually report your credit builder loan payments to at least one of the three major credit bureaus every month. Consistently making timely payments can help you improve your credit score over time! Once you pay the full loan amount, the lender will release the funds to you.  

Automatic Payments

One of the best ways to improve a bad credit score is to maintain a reliable payment history. Signing up for automatic payments is the easiest way to avoid missing payments. Every month, the amount due is automatically deducted from your payment method on file, so you don’t have to keep track of due dates.  

Benefits of Improving Your 630 Credit Score

Take a look at some benefits you can receive if you improve your fair credit score:

Lower APRs

Improving your fair credit history can help you qualify for a lower annual percentage rate on loans and credit accounts. A lower APR can greatly reduce the amount you pay to borrow funding. Suppose you need a $1,000 loan with a 6-month repayment plan. A 10% APR would cost you $29.37, but a 20% APR would be $59.14! 

Higher Credit Limits

A higher credit score can help you secure a higher credit limit. Your credit limit is the maximum amount you can charge on a revolving credit account. Using more than 30% of your total credit limits can decrease your credit scores. However, a higher credit limit means you can spend more without negatively affecting your credit score.  

More Financing Options

High credit scores can increase your financing options. When you have good or excellent credit, you may have no issues qualifying for the best loan deals and credit card rewards. However, a bad or fair credit score can make lenders wary of working with you, which may result in less-than-ideal terms.

How To Improve Your 630 Credit Score

There are several steps you can take to improve your credit scores. Take a look at some helpful tips below. 

Avoid Late Payments

Your payment history is the most important factor that affects your credit score. When a payment is more than 30 days late, it can be reported to a credit bureau and added to your credit report. A late payment will significantly decrease your credit score and remain on your credit report for up to seven years. The best way to improve your credit history is to ensure you pay your bills on time. 

Reduce Your Credit Usage

Using too much credit can prevent you from improving your credit score. Unfortunately, a high credit utilization rate can decrease your credit score and make you appear financially irresponsible on a credit report. Credit utilization is the percentage of your total credit used from the total credit available to you. Consistently maintaining a ratio lower than 30% can help you obtain a good credit score over time. 

Monitor Your Credit Reports 

You are entitled to get a free credit report annually from TransUnion, Experian, and Equifax. Monitoring your credit report information is critical because errors are possible. Incorrect information, such as a missed payment or incorrect balance, can further decrease your 630 credit score. If you want to improve your credit, make sure you request your credit reports at least once a year. 

FAQs About 630 Credit Scores

Absolutely! Paying off debt early can positively impact your credit score, especially if it’s credit card debt. Reducing your credit utilization rate can lead to a better credit score. However, the impact of installment debts, like personal loans, might not be as immediate.

It’s a balance. Repaying high-interest debt should generally be a priority because it can improve your credit score by lowering your utilization ratio. However, it’s also important to build an emergency fund to avoid new debt in case of unexpected expenses. A good strategy is to allocate funds towards both debt repayment and savings.

The main difference between a secured loan and an unsecured loan is the risk level to the lender, but repaying either type of loan on time can positively impact your credit score. Timely payments contribute to a positive payment history, which is a significant factor in your FICO score calculation. However, defaulting on a secured loan could lead to the loss of your collateral, so it’s crucial to manage these loans carefully.

The time it takes to see an improvement in your credit score after repaying debt can vary. For credit card debt, you might see a positive change in your credit score within a month or two after the creditor reports the lower balance to the credit bureaus. For installment loans, the impact might take a bit longer to reflect.

What Interest Rate Can I Get With a 630 Credit Score?

With a credit score of 630, you can generally expect to receive high interest rates. Lenders tend to view borrowers with fair credit scores as somewhat risky, so they offer higher interest rates to offset that risk. While you may not qualify for the lowest rates on the market, shopping around and comparing offers from multiple lenders can help you find the most competitive rate available to you. 

Can I Buy a House With a 630 Credit Score?

Fair credit borrowers can qualify for conventional loans, but they may obtain better terms with a Federal Housing Administration (FHA) loan. An FHA loan is a mortgage backed by the government. Since FHA loans come with financial reassurances, mortgage lenders may issue higher loan amounts and better terms. FHA loans are meant for first-time home buyers who have low incomes or low credit. If you have a 630 score, an FHA loan may help you secure a minimum 3.5% down payment and better interest rates. 

Top 5 Resources for a 630 Credit Score

Related Credit Scores

605 610  615  620  625  639  640  642  644  645