Understanding Your 642 Credit Score

A 642 credit score is a fair score. That means that you’ll be right in the middle with your finances. You will be seen as a moderate credit risk.

A fair credit score borrower will have a good amount of borrowing options to choose from, which can be very helpful!

With the right steps, consistency, and avoiding negative financial actions, improving a 642 is possible.

Sometimes, when people pay off credit cards, they may want to close them. However, doing so can hurt your credit scores. This is because closing a credit card reduces your credit limit, which in turn can increase your credit utilization. And so whether it is a revolving loan or credit card that you paid off, it will be in your credit score’s best interest to keep those accounts active and open on your credit reports.

The most impactful thing you can do when trying to improve your credit is to make sure that you pay your credit accounts on time. When you make timely payments that will reflect positively on your credit report and credit history, over time, these payments can really add up and boost your credit score! So much so you end up with good or excellent credit scores.

Your credit utilization measures your available credit against your current debt. Keeping this ratio under 30% can be good for your credit score, while having it over that percentage can hurt it. A good place to start when trying to lower this rate is simply paying off debt.

Consumers have three credit reports, as there are three credit bureaus; Equifax, Experian, and Transunion. Sometimes errors can happen. When that does happen it’s up to the consumer to fix them. Otherwise, they will remain on your credit reports and can hurt your credit scores.

This is why monitoring your credit reports is important, and will often be advice for those looking to improve their credit scores. The good news is that the process of disputing errors can be pretty straightforward, it all begins with filling a dispute with the right bureau.

Below we’ve provided contact information for each that can help you get started: