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

You might have already read articles about improving your credit score. Maybe you’ve already begun your credit-building journey. But you might wonder what you can qualify for with your credit score as it is right now.

A credit score of 630 certainly isn’t terrible, but it’s not at the top of the range, either. So what can you get approved for with a 630 credit score? Let’s take a closer look.

(pst.. Kikoff users with a starting credit score under 600 saw 86pt increases* in a year with on-time payments. Sign up here)

What can you get approved for with a 630 credit score?

A credit score of 630 needs some work, and if you don’t need credit immediately, it might be a better idea to try to improve it before applying. 

However, if you need to access credit right away, there’s still a good chance that you’ll be approved. You might just have to shop around or choose lenders who specifically focus on those with fair credit.

Here’s a look at the kinds of credit cards, personal loans, auto loans, and mortgages you might be able to get approved for with a score of 630.

Certain credit cards

Not all lenders will approve you for credit cards with a 630 credit score. To avoid having multiple hard inquiries on your credit report, try to use pre-approval tools to see if you qualify before sending in an application.

If you want to maximize your approval odds, your best bet is to apply for student credit cards and secured credit cards. These two types of cards work differently, but both are sometimes offered to people with fair credit scores or thin credit profiles.

Student credit cards are unsecured just like regular credit cards. However, they generally have low credit limits. If you get a student credit card and show that you can use it responsibly, the lender might increase your credit limit over time. This is more likely if you improve your credit score over time as well.

If you can’t qualify for a student credit card, you might consider secured credit cards. These cards offer lenders more protection, so they’re accessible even if you have bad credit. Here’s how they work:

• You apply and are approved
• You make a refundable deposit that becomes your credit line
• You make purchases and pay them off as agreed
• If you don’t make payments, the lender can use your deposit to cover their losses

When you close your account, or the lender upgrades you to a non-secured credit card, you’ll receive your deposit back.

Some personal loans

Qualifying for personal loans with a score of 630 may be difficult, but it’s not impossible. If you’re part of a local credit union, it might be worth applying there first. Because credit unions are more focused on their members than on generating shareholder profits, they are sometimes willing to lend to people who have been turned down by other lenders.

Another option is to look for online lenders who specialize in loans for fair credit or bad credit. Although you might only be approved for a loan with a high interest rate, you’re more likely to get approved with these lenders than with a standard bank.

Auto loans

Getting approved for a car loan with a 630 credit score is usually easier than getting approved for a personal loan with the same score. That’s because auto loans are secured by the vehicle you’re buying.

If you stop making payments on an auto loan, your lender can repossess the car and sell it to get their money back. If you stop paying on a personal loan, the lender may not be repaid.

FHA/USDA mortgages

With a 630 credit score, you’re relatively unlikely to qualify for a conventional mortgage. However, Federal Housing Administration (FHA) loans and U.S. Department of Agriculture (USDA) loans are worth considering.

FHA loans are especially accessible. You usually must have a credit score of at least 580, and you’ll likely have to pay a 3.5% down payment. 

USDA loans are also available to people with credit scores of 580 or higher. However, these loans come with additional restrictions. You can typically use them to purchase rural or suburban homes, and they’re generally offered to homebuyers with low to moderate incomes.

Is 630 a good credit score?

A FICO score of 630 is classified as “fair,” meaning it’s below average, but it’s not considered “poor.” FICO scores range from 300 to 850, and they can be divided into five ranges:

• Exceptional: 800-850
• Very Good: 740-799
• Good: 670-739
• Fair: 580-669
• Poor: Less than 580

When you have fair credit, many lenders will still approve you. However, you may not qualify for the lowest interest rates.

What interest rates can you expect with a 630 credit score?

The exact interest rate you’ll qualify for depends on the lender, the credit you’re applying for, and other relevant facts in your credit profile. However, with a score of 630, you may have to pay substantially higher rates than someone with good credit.

For instance, if you’re applying for a car loan, a score of 630 falls into the “subprime” range. That means you’d likely have to pay interest rates of 10% to 13% on a new car and rates of 17% to 19% on a used one.

Those rates may not sound terrible. However, someone with a super prime (781-850) score typically only has to pay 3.5% to 5% on a new car and 3.7% to 7% on a used one. That extra interest adds up over time, adding hundreds or thousands of dollars to the price of the car.

Interest rates for personal loans tend to be higher than those for auto loans. It’s not uncommon for someone with a 630 score to pay an 18% to 35% APR on a personal loan.

Ready to improve your credit score?

What can you get approved for with a 630 credit score? If you’re willing to shop around, you can likely be approved for most types of credit. However, you could get stuck with high interest rates and other undesirable loan terms.

Improving your credit score often improves the kind of credit you can access. And if you want to improve your credit score but aren’t sure how, Kikoff is here to assist. Kikoff is a credit-builder app designed for people with fair credit, poor credit, and limited credit histories.

When you get started, you can access a wealth of tools, including credit lines, secured credit cards, and personalized financial insights.

Want to see how much your score can improve? Kikoff is free to join, and we don’t check your credit. Get started with us today!