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

With a 639 credit score, you can likely get approved for an unsecured credit card, a personal loan, an auto loan, or a mortgage. That includes an FHA loan with 3.5% down. You'll pay more than borrowers with good credit, because your score sets your rate. The nearest cutoff is 640, just 1 point away, where Fannie Mae's upfront mortgage fee drops. Beyond that, you're 22 points from prime auto rates and 31 points from good credit.

Is 639 a poor credit score?

No. FICO's fair range runs from 580 to 669, so 639 sits in the upper half of it. At 670, you'd move into good credit.

A score in this range usually means your credit report shows one or more of these issues:

• An older late payment. A payment 30 days or more late stays on your report for seven years. Its effect on your score shrinks as it ages, especially when newer on-time payments build behind it.
• High card balances. Using a large share of your available credit lowers your score. Unlike a late payment, this changes as soon as your balances come down.
• A short or thin credit history. A thin credit file, meaning a report with only a few accounts or accounts that haven't been open long, gives scoring models less to go on.

Many lenders will work with a 639 score. What changes is the terms, including higher rates, lower limits, and, in some states, higher car insurance premiums than borrowers with good credit get.

Read more >> What Can You Get Approved For With a 665 Credit Score?

What can you get approved for with a 639 credit score?

At 639, approval opens up across financial products, but prices can still run high.

Credit cards

Unsecured cards designed for fair credit are realistic with a 639 credit score. Expect a modest limit and a higher APR than cards for good credit. Some rewards cards may approve you, though many target good credit. Before applying, check whether the issuer offers prequalification, which uses a soft credit check that doesn't harm your credit.

If you're turned down, a secured credit card is a reliable option. With these cards, you put down a refundable deposit that usually becomes your credit limit. You generally get it back if you close the account in good standing or are graduated to an unsecured card with steady on-time payments.

Personal loans

A personal loan is realistic at 639, though the rate can be higher than a borrower with good credit would get. Include credit unions when comparing lenders: Federal credit unions can't charge more than 18% on most loans.

Online lenders and banks that work with fair credit are another option. Compare offers using prequalification, so only the lender you choose runs a hard credit check.

Auto loans

Approval for a car loan at 639 is usually straightforward, because the loan is secured by the vehicle you're buying. If you stop paying, the lender can take it back and sell it. That lowers the lender's risk, but it also means falling behind puts your car at risk.

A 639 score falls in Experian's near prime tier (601 to 660), 22 points below prime. Your credit score plays a major role in the interest rate you're offered on a car loan. On a $20,000, 60-month new car loan at average rates, a near prime borrower would pay about $3,000 more in interest than a super prime borrower, and about $2,000 more than a prime borrower. Experian sorts these tiers by VantageScore 4.0, so your FICO score may place you a little differently.

Use an auto loan calculator to check payment amounts before you sign.

Mortgages

With a 639 credit score, mortgages are within reach, with costs depending on the type:

• FHA loans. Borrowers with scores of 580 or higher can qualify with 3.5% down. On a $250,000 home, that's $8,750 up front. Each lender can set higher minimums.
• Conventional loans. Fannie Mae no longer sets a minimum score for loans run through its automated system, but lenders still set their own minimums. Fannie Mae does charge lenders an upfront fee on the loans it buys, based on your score and down payment. At 20% down, the fee for scores of 639 and below is 2.75% of the loan amount, compared with 0.375% at 780 or higher. On a $200,000 loan, that's $5,500 versus $750, paid through a higher rate or more cash at closing. At 640, the fee drops to 2.25%, which is $1,000 less on the same loan.
• USDA loans. These are for homes in eligible rural and suburban areas with income limits. USDA doesn't set a minimum score, but lenders typically look for 620 to 640. At 639, you're within that range, though a lender that wants 640 would need 1 more point.

A lender can show you an FHA and a conventional quote side by side. Our mortgage calculator can help you compare the monthly payments.

What interest rates can you expect with a 639 credit score?

Expect rates above what borrowers with good credit get. The Federal Reserve's averages across all borrowers were 22.15% for card accounts charging interest and 11.86% for 24-month bank personal loans. With a 639 score, your offers will likely come in near or above them.

The rate applies to the whole balance, so even a small rate difference adds up. Your nearest cutoff is 640, 1 point up, where Fannie Mae's mortgage fee drops. Lenders may use a different score than the one you see, so ask which one they pull. Beyond that, prime auto rates start at 661, 22 points above your score, and good credit starts at 670, 31 points up.

5 ways to raise a 639 credit score

1. Check your credit reports for errors. You can get all three for free every week at AnnualCreditReport.com. If something is wrong, like an account that isn't yours or a late payment you made on time, dispute it with the bureau. Disputing is free.
2. Bring any past-due accounts current, if you can. If you're juggling more than one, the National Foundation for Credit Counseling (NFCC) can connect you to free or low-cost counseling at 800-388-2227.
3. Pay every bill on time. Payment history is the biggest factor in your score, making up 35% of a FICO Score.
4. Bring down card balances before your statement closes. Your issuer usually reports the statement balance, so using less of your available credit on that date can show up in your score within a month. That boost lasts only while the balances stay low.
5. Apply only when you need to. Each application can add a hard inquiry, which takes a few points off for about a year. Prequalify first where you can, since it uses a soft check. When you shop for an auto loan, mortgage, or student loan, FICO counts those inquiries as one if they fall within 14 to 45 days, depending on the FICO version. Card and personal loan applications each count separately.

If your report is thin on accounts, adding one helps. A Kikoff Credit Account reports your payments to all three bureaus.

Read more >> How to Build Credit

Bottom line

At 639, most lenders will approve you for a range of products. What your score decides now is the price. One more point, to 640, moves you into Fannie Mae's next mortgage fee band. At 661, 22 points up from 639, you'd reach Experian's prime auto tier, and at 670, 31 points up, you'd reach good credit in FICO's ranges.

Kikoff brings credit building, bill and rent reporting, AI-powered disputes, credit monitoring, and debt negotiation into one place. Sign up with no credit check. Plans start at $5 a month.