620 Credit Score. Is 620 a Good Credit Score or Bad?
Your credit score is the easiest way for a potential lender to see how likely you are to pay them back, and thus affects the likelihood of your receiving a loan in the first place. Using a range of 300 to 850, your credit score will rise or fall depending on whether you pay back debts on time.
Today, we’re going to look at whether or not a 620 credit score is a bad thing, and what you can do to potentially improve it. If you have a low credit score, you may have difficulty buying a car, getting a loan, or even a mortgage, so it’s important to do what you can to improve it, as it will take time.
While 620 may be a relatively low credit score, it is still decently higher than the bottom rating of 300, and it provides you something to work with so that you can improve it in the long run. Let’s take a closer look at what exactly a 620 credit score means for you and how it may affect you.
What Does a 620 Credit Score Mean?
When lenders look at your credit score, they will consider anything lower than 630 to be poor, so you will be more likely to be refused with a score of 620. If you have a score of 620, then you are one of the 44% of Americans who have a rating that is rated Fair or lower.
A credit score of 620 is a like a warning flag to potential lenders that you may be unreliable, and it’s nothing personal, just a simple way for them to calculate risk. The good news is that you can make decent progress with lenders if you work to improve your score, as 620 is a good position for those looking to get out of the “fair” bracket (580 – 669).
You’ll also find that just around 27% of lenders in this range are likely to become seriously delinquent, so it is essential to take steps to improve your credit rating so that this doesn’t occur. If you have a credit score in this range, you should take a close look at your credit report to see if you can do anything.
While a 620 credit score isn’t as bad as it can get, it will make lenders think that you are less reliable than average, and unless you take steps to fix it, you may not qualify for the best rates.
What Can a 620 Credit Score Get You?
Type of Credit | Do You Qualify? |
---|---|
Any Credit Card | NO |
No-Annual-Fee Credit Card | YES |
Big Initial Credit Card Bonus | NO |
Credit Card with 0% Financing | YES |
No-Foreign-Fee Credit Card | YES |
Favorite Store’s Credit Card | YES |
Airline/Hotel Credit Card | NO |
Best Mortgage Rates | NO |
Auto Loan with 0% Intro Rate | NO |
Lowest Auto Insurance Premiums | NO |
Personal Loan | MAYBE |
Apartment Rental | MAYBE |
If your credit score is currently at 620, you may be wondering what it can accomplish for you, and you can rest assured that you still have some breathing room. Since you are just on the cusp of a poor rating, you will be more likely to qualify for better rates than people below you, especially if your credit score is improving.
However, some agencies will see anything below 630 as dangerous to work with, so if you’re trying to get the best rates, we’d recommend waiting until you can bump your credit score up ten points. If you can’t wait for your score to rise, then you may have to pay higher interest rates to make up for it.
Nearly all subprime lenders will be willing to work with you if you have a credit score of 620, but we’d recommend exhausting all other options before opting for one of them. A subprime lender is one that is specialized in lending money to those with poor credit, and the price is a higher interest rate.
However, if you are capable of paying back the debt on time, then subprime lenders can help you rebuild your credit score, and they may be a necessary stepping stone.
What it Means if You’re at 620 Credit Score and Rising
If you’re taking steps to actively improve your credit score when it is at 620, you may find that your options are slowly expanding. Since 620 is the point where you start to rise out of the “poor” credit scores, people will be more willing to lend you money, especially if they see the effort to improve.
However, even if your credit score is rising, you’ll have to pay more when it comes to interest, and you’ll also have to keep an eye out for extra fees from the lenders willing to work with you. While you may not have access to the best terms, you have to look around for opportunities to improve your credit score.
Let’s take a look at what you can do with a score of 620, especially if it’s rising:
- Depending on the area, 620 is the point at which landlords may start considering you as eligible to rent an apartment, which will allow you to get a lease without having to sublet. However, keep in mind that every landlord has a personal preference when it comes to their tenants’ credit scores, so don’t be afraid to speak to them.
- Getting a car with a credit rating of 620 should be a little bit easier than getting other loans because of the nature of auto loans. Since the vehicle is readily available as collateral, car dealerships will be more willing to work with people who have a credit score in the 620 range. Don’t be afraid to shop around and make compromises if you have to.
- Personal loans are also a possibility for people who have a 620 credit score and rising, but you’ll find that your interest rates will often be unfavorable. Rates can be up to 20%, which can often make a loan not worth the effort.
- Secured credit cards are often a better option for people with a credit score of 620 and below. However, if your credit is rising reasonably fast, you may be able to find a credit card company willing to work with you.
What it Means if You’re at 620 Credit Score and Dropping
If your credit score is at 620 and dropping, then you’re in the danger zone, and you need to take whatever steps you can to arrest its fall. There are a few different things that you can do to ensure that things don’t get worse, and if possible, stop your credit score from getting lower than 600.
Restoring your credit score can take a long time, but if you’re patient, you’ll be able to work your way back up to a level where you aren’t in danger of sliding to a “very poor” rating.
Whatever you do, stop borrowing money until you can pay back your debts, if possible, as you will only continue digging yourself deeper into a hole that will be hard to get out of.
- First off, go over all of the money you owe and formulate a plan to pay it back gradually over time. Make it clear to your creditors that you are working to pay back your debts, and you may actually be able to arrange more favorable terms. At the very least, you may prevent a collection account from being opened.
- If you have dealt with your outstanding debts, you can now start borrowing money again, but only do so if you’re sure that you’ll be able to pay it back on time. This will allow you to rebuild your credit score over time, provided you don’t miss any of the payments.
- Don’t apply for credit too often, and be relatively sure that you’ll be approved, as each application will result in a slight, temporary credit drop.
- Try not to use more than 30% of your credit card spending limit, so that you can be sure to pay your bill every month without any problems.
How to Improve Your 620 Credit Score
The first thing that you’re going to have to do is take a look at your credit report. When you see your report, also be sure to go over your personal details and correct any mistakes like old phone numbers or addresses. However, your best bet to improve your credit score is to take a look at the items on it.
Keep in mind that you can dispute any item on your credit report if you find any charges that you don’t recognize. If the creditor doesn’t prove that the item is valid within 30 days, it will end up expunged from your record, and it will go a long way towards improving your credit score.
Another method to raise your credit score quickly is to focus on paying off any debts you currently still owe, especially if you can do so before they turn into collection accounts. Collection accounts are debts that have been sold off to third-party agencies, and even paying them off won’t ensure that they’re off your credit report.
If you have any collection accounts to deal with, contact the collection agency and see what you will have to do to get the account off of your record. This will often involve paying extra, so be prepared. Following this advice, you’ll be able to raise your credit score from 620 in no time.

Darryl founded Smith Financial Advisors Inc. in 2006 after over 30 years experience in financial services including Mergers & Acquisitions, Investment Banking and traditional Commercial Banking activities at Bank One. Smith Financial Advisors is a Registered Investment Advisor in the State of Illinois. The firm specializes in Investment management, financial planning, and retirement planning.