Is 603 a Good Credit Score?

By Kim Franke-Folstad

A 603 credit score is toward the lower end of what’s considered the “fair” range. People with that score may have a difficult time qualifying for some credit cards or loans, and getting the same interest rates and other perks that may be available to borrowers with higher scores.

Read on to learn how a 603 credit score might affect you as a borrower.

What Does a 603 Credit Score Mean?

It’s up to each lender to decide how it will assess your various credit scores. There are multiple scoring models to choose from, but lenders most often use FICO® Scores to determine a borrower’s risk.

FICO calculates your credit score based on such factors as payment history, amounts owed, length of credit history, credit mix, and new credit. Here’s a look at how FICO Scores are categorized:

•   Poor: 300-579

•   Fair: 580-669

•   Good: 679-739

•   Very Good: 740-799

•   Excellent: 800-850

Some lenders might see a 603 credit score as a red flag — a sign that you may have had past credit problems or perhaps lack a credit history. As a result, they could look at you as a riskier borrower than someone with a higher score. But that doesn’t necessarily mean you won’t be eligible for a loan or credit card.

What Else Can You Get with a 603 Credit Score?

If you have other factors working for you — say, a low debt-to-income (DTI) ratio, stable employment, a good income, cash in the bank or other assets — you still may qualify for credit with a 603 credit score. Some credit cards and loans are designed for borrowers with fair or poor credit, though you may have to pay a higher interest rate or secure the loan with some type of collateral.

Can I Get a Credit Card with a 603 Credit Score?

If you’re trying to build or rebuild your credit, you may find that the best credit card offers you get are for secured credit cards vs. unsecured credit cards. And that isn’t necessarily a bad thing. Using a secured card can be a useful way to improve your credit reputation.

A secured card works a lot like a traditional credit card, except that you’ll be asked to provide a deposit that “secures” the card. (Your credit limit with a secured card is usually equal to your deposit.) The credit card company will hold onto your deposit just in case you default on your payments. You’ll get the deposit back if you close your account or if you transition to an unsecured card later on.

If you’re looking for an unsecured credit card, gas station and retail cards may be worth exploring. They often have lower credit limits and are easier to obtain. Plus, making your payments on time with this kind of card can also help you improve your credit score.

Whether you qualify for a secured or unsecured card, it’s likely your interest rate and other costs will be on the high end until you can prove or improve your creditworthiness. It can be a good idea to compare offers so you’ll know you have a good chance of getting the card before you apply.

Remember to look for cards that come with useful credit-building elements, such as free credit score monitoring and/or an app that makes tracking your spending quick and convenient. It’s also important to ensure the credit card you choose reports to all three of the major credit bureaus regularly.

Can I Get an Auto Loan with a 603 Credit Score?

The minimum credit score required to get a car loan can vary from one lender to the next. And some lenders may use an industry-specific scoring model for auto loans that can work a bit differently than a basic FICO® Score. Still, as with most types of borrowing, the higher your credit score, the more likely you are to qualify for financing — and better financing terms.

Can I Get a Mortgage with a 605 Credit Score?

Eligibility requirements can vary with different types of mortgages, and individual lenders also may have their own credit score criteria. Although some lenders may accept a 603 credit score, your borrowing options may be limited. Here is some basic mortgage information to consider:

•   If you’re applying for a conventional mortgage, which is a loan from a private lender that isn’t backed by a government agency, you typically need a credit score of at least 620.

•   Lenders generally like to see a minimum credit score of 620 for a VA loan, which is backed by the U.S. Department of Veterans Affairs. Some lenders may accept a lower score, though your application will likely undergo additional financial scrutiny.

•   If you’re thinking about a government-insured FHA loan you’ll need a minimum 580 credit score to qualify for a down payment as low as 3.5%. Applicants with lower scores, down to 500, must put down at least 10%.

•   There isn’t a firm credit score requirement for government-backed USDA loans. However, you are more likely to be approved if your score is in the 620 and higher range. (Borrowers without a credit history may be evaluated through other criteria.)

You may want to talk to a mortgage professional about the various types of loans available to you and which might be the right choice based on your overall financial picture. If you have stable employment, a low DTI ratio, and other positive information on your application, you may have a better chance of getting the type of loan you want. But you should be prepared to pay a higher interest rate than you would be offered if you had a higher credit score.

Can I Get a Personal Loan with a 603 Credit Score?

There are personal loans designed for borrowers with fair or poor credit, so you may be able to find a lender who would approve your application with a 603 credit score. This is especially true if the loan is in a lower amount and/or you’re willing to pay a higher interest rate.

If you’re able to put up an asset as collateral, you also may want to consider a secured personal loan. With this type of loan, the lender is taking less risk, which could make qualifying easier. And the interest rate may be lower than with an unsecured loan.

But even unsecured personal loans tend to have lower interest rates than credit cards, which can make them a better choice for larger expenses. Knowing you’ll have a fixed payment every month can also help you stay on track as you work to build your credit score.

Wondering how a personal loan might compare to other financing options? A personal loan calculator can help you determine how much your monthly payments might be.

You can also see if it makes sense to use a personal loan to pay off an existing loan or high-interest credit card balance. With a credit card consolidation loan, for example, you may be able to simplify your finances and save money.

The Takeaway

A 603 credit score may not be considered “good,” but it isn’t a bad score, either. In fact, it could be good enough to help you qualify for a limited number of credit cards and loans, though you may have to pay a higher interest rate than a borrower with a higher credit score. However, if you remain disciplined and keep paying your bills on time, you may be able to look forward to qualifying for better financing options in the future.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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