637 Credit Score: Good Or Bad? And What Can I Get With A 637 Credit Score?

What determines your credit score?

• Payment history. Your payment history has the biggest effect on your credit score and is exactly what it says: a record of your bill and credit payments. This tracks the number of on-time and late payments you make, whether on loans, credit card accounts, utility bills or other services.
• Amounts owed. This refers to how much available credit you have compared to how much credit you owe. You can also think of this as your credit utilization ratio, which should ideally be kept below 30%. For instance, if you've reached the credit limit on numerous credit cards, this will likely lower your score.
• Length of credit history. How long you keep a credit account open matters, even if you don't actively use that credit line. This factor considers the age of your oldest and newest credit accounts as well as the average age of all your accounts together.
• Credit mix. While it may sound counterproductive to have multiple credit accounts, a mix of different accounts is actually a good thing. Having a couple of credit cards, an auto loan, and a mortgage shows lenders that you can manage several types of credit responsibly.
• New credit. "New" credit specifically looks at how many credit accounts you opened recently and the number of credit inquiries made into your account. Each time you apply for a new loan or line of credit, the lender will make an inquiry into your credit history to review your score and payment history.

What does it mean to have a 637 credit score?

A 637 credit score is below the average credit score. Though a small percentage of Americans have credit scores below 669, Experian found that these borrowers were likely to become "seriously delinquent," or more than 90 days late on a bill or debt payment. With this in mind, it makes sense that lenders would be hesitant to offer financing to an applicant with a 637 credit score. How you reached this score isn't quite as clear. Maybe you made some late payments in the past in addition to reaching your credit limit on a line of credit. If you recently had to declare bankruptcy, this could also drop your credit score substantially.

How does this score compare to others?

Unfortunately, as we mentioned above, a 637 credit score isn't great. You may have a difficult time getting an auto loan, and you may not have access to a high credit limit on a secured credit card either. And as you can see from the data below, the average credit score is only increasing with time.

What does a 637 credit score get you?

Even though a 637 credit score is considered "Fair," you'll still have some financing options available to you, as you can see below. As you can see, your best bet when applying for loans or credit lines with a 637 credit score will be secured lines of credit. These could be secured credit cards — where you must provide a security deposit — or secured personal loans, which are secured by an asset. With secured loans or credit lines, the lender has funds or an asset that can then be sold to cover your overdue payment, which reduces the lender's risk.

Popular credit cards for a 637 credit score

Most of the best credit cards to apply for with a 637 credit score are secured cards. However, that's not the only type available to applicants with fair credit scores. Using our comparison tool below, you can compare different credit cards that accept applicants with a 637 credit score. In addition to reviewing what APRs you qualify for, make sure you know what fees you'll pay as well, such as an annual fee.

Popular personal loans for a 637 credit score

Just as with credit cards, the most popular personal loans for consumers with scores around 637 will mostly be secured personal loans. While these aren't the only personal loans available, they'll probably offer applicants with fair credit scores the best loan terms.

Auto loans with a 637 credit score

Unfortunately, applicants with FICO scores around 637 may have a tough time getting auto loans. Though this score doesn't outright prevent you from getting an auto loan, you may have poor loan terms with a high interest rate. Instead, you may be better off saving up and improving your credit score before applying for auto loans. As you can see from the table below, a higher credit score can save you hundreds of dollars over the life of the loan. That being said, the auto loan lenders below have previously accepted applicants with a 637 credit score.

Mortgages and home loans with a 637 credit score

Consumers with credit scores below 620 typically make up a small percentage of successful mortgage applicants. This means mortgage lenders may refuse to work with applicants that have credit scores around 637. By creating a savings plan and improving your credit score first, you may receive better financing down the line. For example, if you get your credit score above 620, you may qualify for a conventional home loan instead. Just as higher credit scores save you money in auto loan interest rates, improving your score can save you even more money on a mortgage. However, there are still mortgage lenders who will accept applicants with a 637 credit score. For instance, the U.S. Department of Veterans Affairs does not have minimum credit score requirements, so you may receive home financing through a VA loan.

Student loans with a 637 credit score

Fortunately, student loans are some of the easiest loans to receive with a credit score of 637. Since most students are still building credit at this time, it makes sense that student loans would have less strict credit requirements. In fact, federal student loans generally don't have credit requirements at all. However, private student loan lenders usually have more stringent requirements and may not accept an applicant with a 637 credit score. Because of this, your chances will be much better if you have a cosigner.

How to improve a 637 credit score

With all of this in mind, there is some good news if you fall in the "Fair" credit range: You have a lot of room to achieve a higher credit score over time.

Catch up on past-due payments

We know it's easier said than done, but repaying your old bills and debts can help improve your credit score. This is especially true when it comes to the most recent versions of FICO and VantageScore credit scores. Newer credit scoring models ignore collections that have a zero balance. So, if you pay or settle a collection and it's updated to reflect the zero balance on your credit reports, your FICO® 9 and VantageScore 3.0 and 4.0 scores may improve. However, scores generated by older models that do not ignore zero-balance accounts will not improve. However, it can be tricky to know how to best tackle your debts when you first start out. Luckily, you have a few options available to you:

• Do it yourself. This is the most obvious plan. Using a calendar, day planner, or money management tool, start budgeting and tracking your payments regularly. It won't be easy, but by creating a solid repayment strategy you can chip away at your debts and lower your credit utilization ratio. You should also consider which debt repayment strategy is right for you before starting.
• Apply for a debt consolidation loan. If you have multiple debts to pay off, consolidating your debts into one payment can make repayment easier to track and manage. While you may have to search for a secured loan, consolidating your debts can help debt payments feel more manageable.
• Consult a debt settlement company. If your debts seem too large to tackle, talking to a debt settlement company may help you reduce your debts to something more doable. While they won't pay your debts for you, a debt settlement company can help reduce the amount you owe to a particular creditor.

Review your credit reports for errors

Sometimes, a poor credit score isn't your fault. Though we'd all like to believe mistakes won't be made when it comes to our credit, there's always a chance you could have an error on your credit report. It could be the result of fraud, where your information was stolen and used to open a credit line or loan, or a simple mistake by the major credit bureaus. Regardless of what happened, make sure to regularly review your credit report for any errors. If you don't have the time to monitor your credit score yourself, consider hiring a credit repair company instead. Their job is to review your credit history and report any false information on your behalf, which could end up improving your score.

Be patient after a foreclosure or repossession

After a foreclosure or repossession, you may feel like you need to work quickly to better your credit score. The reality is that a foreclosure or repossession typically happens after multiple missed payments and attempts to collect those payments. Because of those attempts, a foreclosure won't be the only bad mark on your credit report. And once a repossession is part of your credit history, you'll likely see your score drop significantly, often 100 or more points. What does this mean for you? Patience. Instead of scrambling to repay every debt you have and anxiously monitoring your score, understand that repairing poor credit doesn't happen overnight. It may take several months or years to return your credit score to its previous glory. On top of that, repossession may stay on your credit report for up to seven years. That doesn't mean stop trying, but rather be patient and take small steps towards your debt repayment goal. If you're not sure where to start, read this guide. You can also reach out to a certified financial planner or a credit counseling company. They can help you budget and create a debt repayment strategy that works with your finances.

Open a secured credit card account

One way to show your creditworthiness is through a secured credit card. To use a secured card, you first have to pay a security deposit, which the card issuer holds onto. If you ever miss a card payment, the card issuer uses the security deposit towards your balance. This can be a great way to improve your credit score and manage credit card debt more effectively. Take a look at some of the secured credit cards below and compare card features to find the best one for your spending habits.

FAQs

How long does it take to go from 637 to an 800 credit score?

Raising a credit score from 637 to 800 is a significant jump and takes time. Depending on your specific situation, it could take anywhere from a couple of years to a decade or more. Improvement depends on many factors, including paying off debt, making payments on time, and avoiding new debt.

How to get my credit from 637 to 700?

Improving your credit score from 637 to 700 involves making consistent on-time payments, paying off debt, keeping low credit card balances, not applying for new credit frequently, and rectifying any inaccuracies on your credit report. It's a process that may take several months to a year.

What credit score do you start with?

When you're new to credit, you don't start with a credit score. Only after about six months of credit activity will a FICO score be generated for you. Initial scores often range from the mid-600s to the mid-700s.

How to raise your credit score 200 points in 30 days?

Raising your credit score by 200 points in 30 days is unlikely. Credit improvement takes time, usually a few months to several years. It involves making on-time payments, paying off debt, and maintaining low balances on your credit cards.

What is a perfect credit score?

The highest possible score under the FICO scoring model is 850, which is considered a perfect credit score. However, anything above 800 is usually categorized as exceptional and can qualify you for the best interest rates and credit terms.

Can you get anything with a 637 credit score?

Yes, with a 637 credit score, you can still qualify for some types of credit, such as personal loans or auto loans, but expect less favorable terms and higher interest rates. You may also be eligible for certain credit cards, particularly those designed for individuals with fair or average credit.

Is 637 a good credit score?

A 637 credit score is typically considered "fair". It's not in the poor range, but it's also not in the good or excellent range. It may limit your options and result in higher interest rates.

What is the difference between FICO credit scores, VantageScore, and PLUS?

• FICO scores are more widely used by lenders. About 90% of lenders use FICO scores, while only about 60% use VantageScore. FICO scores are more complex than VantageScore. FICO scores use a variety of factors to calculate your score, including your payment history, credit utilization, length of credit history, and recent inquiries. VantageScore uses a simpler model that focuses on your payment history and credit utilization.
• Also, VantageScore scores are more forgiving of recent inquiries. VantageScore counts multiple inquiries, even for different types of loans, within a 14-day period as a single inquiry. FICO scores only dedupe multiple inquiries from student loan, auto loan, and mortgage applications.
• PLUS is a newer credit scoring model that is still gaining traction. It is designed to be more transparent than FICO and VantageScore, and it uses a variety of factors to calculate your score, including your payment history, credit utilization, length of credit history, and credit mix.

Can you get approved for a loan with a 637 credit score?

How can I raise my credit score from 637 to 700?

What credit score do you start with?

What is the lowest credit score?

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