How does a 639 credit score rank?

Answer 1

FICA scroes range from 300 to 800. The higher the number the better. Any score 700 or above is considered good. A score of 639 is below average. Here is what all these scores mean to you.

720 and above: You have excellent credit and will likely be eligible to receive a lender's most favorable rates. In fact, you're in a position to shop around and demand the best possible conditions. Lenders will often allow you to borrow more than 80 percent of the value of your home, and may not require private mortgage insurance. You will likely be able to get a home equity loan or line of credit with an interest rate equal to the prime rate, or even below it. You can also look for a credit card that will reward you with a low interest rate -- while many cards charge 18 percent, you should be able to obtain a rate under 10 percent.

675 to 719: Once your credit score dips below 720, you may no longer be approved for the lender's best rate, but you should have little difficulty finding a good loan. On a 30-year fixed-rate mortgage, expect to pay up to half a percentage point more than someone in the top category. If your principal is $150,000, the difference between 6.5 and 7 percent works out to about $18,000 over the life of the loan.

620 to 674: With a below-average credit score, your options will be reduced, and you'll pay a premium on your loan -- perhaps as much as 2 percent more than borrowers with excellent credit. You may need to provide more documentation than those with higher scores, including a formal appraisal of your home's value. But if you make your payments regularly and work to improve your credit score, you should be able to refinance at a better rate, which can save you money over the life of the loan.

Below 620: A credit score under 620 puts you in the category of a "sub-prime" borrower. The good news, however, is that there are now more lenders offering sub-prime loans than ever before, with rates adjusted to reflect the added risk. If you are approved for a mortgage with a credit score this low, you'll likely pay about 3 percent more than someone with excellent credit. If you're looking for a home equity loan or line of credit, expect to pay double-digit interest rates. Of course, once again, if you make regular payments on the loan and get control of other areas of your financial life, you should gradually be able to improve your score and qualify for a lower rate.

Your credit score can also affect the rate you pay for car insurance. People with low credit scores are statistically more likely to make accident claims, and as a result, many insurance companies take this into account when they set your premiums.

Poor credit may even hamper your job search. While a company interviewing you is not permitted to access your score, they are allowed to request (with your written consent) a modified version of your credit report to see whether you have a history of meeting your financial responsibilities. Potential landlords may also access your credit report before you sign a lease.