By CreditNinja
Published on April 12, 2024

A 639 credit score falls within the “fair” credit category, which includes scores between 580 and 669.

Lenders consider individuals with “poor” or “fair” credit to be subprime borrowers.

Most financial institutions have a minimum credit score requirement. Some lenders only work with good credit scores, which are higher than 670 points. By improving your credit score, you could increase your lending options and secure better terms. 

Key Takeaways for a 639 Credit Score

Overview of Your
Credit Rating

639 is a fair credit score. Fair credit indicates that a borrower is a moderate credit risk. Many borrowers with fair credit have a history of late payments or too much credit card debt.

Borrowing Options With a
639 Credit Score

You may still be eligible for various types of secured and unsecured loans. However, rates and terms on financial products will be less than ideal.

Improving a 639
Credit/FICO Score

You can steadily improve your credit score over time by avoiding late payments, reducing your credit usage, and limiting your credit inquiries.

Is a 639 Credit Score Good?

FICO is a data analytics firm whose credit scoring model is used in 90% of lending decisions.1 A 639 FICO Score is categorized as “fair.” But if you can raise your current score by 31 points, you can upgrade to the “good credit” category, which includes scores between 670 and 739. Good credit scores generally receive better rates and terms on loans and credit cards.

What Can You Get Approved for With a 639 Credit Score?

These are some loan options you may be eligible to get with a 639 credit score: 

Personal Loans

You may be eligible for a personal loan with a fair credit history. Most online personal loan lenders have flexible credit score requirements, so you could qualify for quick cash loans. Personal loans can provide small or large lump sums, which makes them ideal for all types of unexpected expenses.     

Bank Loans

Your eligibility for a bank loan depends on the financial institution and the loan type. Banks offer various financial products, such as mortgages, home equity loans, and unsecured loans. It may be easier for you to get approved for secured bank loans with fair credit. While you could qualify for an unsecured loan, be prepared for an unattractive interest rate. 

Credit Cards

Credit card issuers usually require good credit for qualification. If you do get approved for an unsecured credit line, your annual percentage rate (APR) may be excessively high. According to a Bankrate survey, the highest APR on a credit card is currently 33.24%!² 

If you want to get better loan deals in the future, consider secured credit cards instead. Responsibly managing a secured card can improve a fair credit score over time. However, in order to qualify, you must provide a refundable security deposit.

These are some of the best secured card options:

  • Capital One Platinum Secured Card (minimum $49 deposit)
  • First Progress Platinum Elite Mastercard® Secured Card (minimum $200 deposit)
  • Discover it® Secured Credit Card (minimum $200 deposit)
  • Chime Credit Builder Secured Visa® Credit Card (no deposit; uses linked checking account)
  • BankAmericard® Secured Card (minimum $200 deposit)
  • OpenSky® Plus Secured Visa® Credit Card (minimum $300 deposit)

Car Loans

Car loans are secured loans that are generally easy to get for borrowers with fair credit. Your interest rates may be higher compared to someone with better credit, but there are ways to reduce your total loan fees. If you’re thinking of applying for an auto loan, it’s important to first consider the cost difference between a new and used car with low credit.

These are some cost factors to consider before applying for an auto loan: 

Cost Factor

New Vehicle

Used Vehicle


Purchase Price



New cars depreciate quickly in the first few years.

Insurance Costs

Generally higher

Generally lower

Insurance rates can be influenced by the age and value of the vehicle.

Registration Fees

Higher in the first few years


Fees often decrease as the vehicle ages.


Rapid in the first 3 years


Used cars have already undergone major depreciation.

Maintenance & Repairs

Lower initially, warranty covered

Potentially higher, no warranty

Older vehicles may require more frequent repairs.


Manufacturer’s warranty included

Limited or no warranty

Extended warranties for used cars can be purchased but at a cost.

Fuel Efficiency

Often better


Newer models may have better fuel technology.

Financing Rates

Lower rates may be available

Higher rates possible

New car purchases often come with promotional financing offers.

Disclaimer: This table provides a general overview. For a more detailed and personalized comparison, specific models and their respective costs, insurance quotes, and other ownership expenses should be considered.

Products To Help Improve a 639 Credit Score

These are a few financial products that can help you improve a fair credit score:

Credit Builder Loans  

A credit builder loan can help you start a savings fund and improve your credit history. Before applying, consider how your preferred loan amount and repayment length. 

When you start the application process, the lender will open a secure savings account with your desired loan amount. As with any installment loan, you will make monthly payments until the loan is fully paid off. Your payments will be reported to the major credit bureaus. If you maintain a positive payment history and avoid late payments, you can boost your 639 credit score over time. Once you complete the repayment process, the lender will give you access to the savings account.     

Automatic Payments

If you want to improve a poor credit score, it’s essential to maintain a positive payment history. One way to avoid late payments is to sign up for automatic payments. When you opt-in for autopay, your bills are automatically paid on time. 

The best feature is that you can customize the amount you want to pay monthly. If you want to reduce your interest fees, you can commit to paying a specific amount more than the minimum to reduce the principal.   

Debt Consolidation Loans  

A debt consolidation loan is a large installment loan that allows you to merge multiple outstanding credit accounts. Combining your debt into one account can help you better manage your finances and avoid late fees. Many people use debt consolidation loans to help them pay off high-interest credit card debt. If you can secure a better rate on a debt consolidation loan, you could greatly reduce your interest fees.

Benefits of Improving Your 639 Credit Score

You can look forward to receiving the following benefits when you get a good credit score: 

Higher Loan Amounts

Improving fair credit scores can help borrowers qualify for higher loan amounts and credit limits. When you need thousands of dollars for a home or car repair, you could quickly get the funds with good credit. A higher credit limit can also reduce your credit utilization rate, which directly impacts your credit score. 

Lower APRs

Lenders use high rates to reduce the risk of lending to subprime borrowers. But if you have an exceptional credit history, you could get the best APRs on financial products. A low APR can greatly reduce your monthly payment amount and keep more money in your pocket.  

More Housing Options

A higher credit score can increase your housing options. When you apply for a rental property, the landlord will take your credit score into consideration. A good credit history indicates that you are likely to pay your rent on time, which may help you get approval for all types of housing options. 

How To Improve Your 639 Credit Score

Consumers can improve low credit scores by following these helpful financial tips: 

Limit Your Credit Inquiries

You can improve low credit scores by limiting the number of credit inquiries you make. Every loan application you make will stay on your credit report for two years and decrease your current credit score by a few points. Too many inquiries on a credit report can negatively impact your credit profile and make you appear financially unstable. It’s in your best interest to avoid having more than six credit inquiries on a credit report. 

Monitor Your Credit Reports

Your credit reports directly affect approval for financial products, insurance, and housing. That’s why it’s crucial to monitor your credit reports at least once a year. You can download your free credit report from each of the major credit bureaus through the Annual Credit Report website. Monitoring your reports can help you identify errors that decrease your credit score. 

Reduce Your Credit Usage

Your total credit card balance can negatively affect your credit score. If you want to improve your score quickly, focus on debt repayment. Ideally, you should not use more than 30% of your total credit limits. The best way to pay off credit card debt is to pay more than the minimum every month. 

If you’re struggling with high interest rates on multiple cards, you can also try consolidating your debt with a balance transfer credit card. Just ensure that your new rate is lower and that the balance transfer fees do not outweigh the benefits. 

FAQs About 639 Credit Scores

Credit bureaus update your credit score as they receive new information from creditors, which is typically once a month. However, the exact timing can vary depending on when your creditors report your payment history and other credit activities.

Yes, increasing your credit limit can potentially improve your credit score, especially if you maintain or reduce your current balance. A higher credit limit can lower your credit utilization ratio, which is the percentage of your available credit that you’re using. This is a key factor in calculating your credit score.

Taking out a personal loan with a fair credit score can be beneficial if you use it wisely. For instance, consolidating high-interest debts into a single, lower-interest personal loan can help you manage payments more effectively and potentially save on interest charges. Additionally, consistent on-time payments on a personal installment loan can improve your payment history and help boost your credit score over time.

When you apply for a personal installment loan or any credit, the lender may perform a hard inquiry to check your credit report, which can slightly lower your credit score. Typically, a hard inquiry might reduce your score by five points or fewer. The impact of a hard inquiry diminishes over time, and it will completely fall off your credit report after two years. To minimize the effect, try to limit the number of new credit applications you submit.

To use a personal loan to improve your payment history, make sure to make all your loan payments on time and in full. Setting up automatic payments can be a helpful way to ensure you never miss a due date. Over time, a consistent record of timely payments on personal loans can reflect positively on your credit score.

What Interest Rate Can I Get With a 639 Credit Score?

Borrowers with poor or fair credit scores typically get higher rates than borrowers with good or excellent credit. While you still have loan options available to you, the rates and terms will be unattractive. Financial institutions offer higher rates to individuals with low credit, because they are a higher credit risk. If you want better financial offers in the future, it’s essential to improve your FICO Score. 

Can I Buy a House With a 639 Credit Score?

It is entirely possible to buy a home with a 639 FICO Score. However, your rates will depend on the type of mortgage you get, as well as other factors. Many borrowers with low credit use FHA loans to purchase a primary residence. 

An FHA loan is a mortgage backed by the United States Federal Housing Administration. FHA loans are meant for prospective home buyers with low credit and low to moderate income. Since your credit is higher than 580, you could provide a down payment as low as 3.5% of the home’s purchase price! Talk to an FHA-approved lender for more information and to see if you qualify. 

Top 5 Resources for a 639 Credit Score

Related Credit Scores

610  615  620  625  630  640  642  644  645  650