Is 604 a Good Credit Score?

604 credit score

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    By Lauren Ward

    A 604 credit score falls in the fair category, which doesn’t qualify as good (that category is typically reserved for scores of 670 to 739). In addition, the average credit score in America is 717, which is also quite higher than a 604 credit score.

    But even with a 604 score, you may qualify for some financing and credit offers. Here’s what you should know about this credit score range and how it could impact your financial future.

    Key Points

    •   A 604 credit score is considered fair, not good, and is below the national average, making credit access more difficult and expensive.

    •   Credit cards are accessible with a 604 score, though terms are less favorable, with higher APRs and lower credit limits.

    •   Auto loans are possible with a 604 score, but expect higher interest rates, increasing overall loan costs.

    •   Mortgage options exist for a 604 score, such as FHA and USDA loans, but may require additional documentation.

    •   Personal loans may be available with a 604 score, but likely with higher interest rates and borrowing limits.

    What Does a 604 Credit Score Mean?

    Credit scores range from 300 to 850, with the higher end representing a better score. When determining if a 604 credit score is good or bad, you need to consider which of the five credit score ranges it falls into. Here are the categories, according to the FICO® system:

    •   Poor: 300-579

    •   Fair: 580-669

    •   Good: 670-739

    •   Very Good: 740-799

    •   Exceptional (or Excellent): 800-850

    As you see, 604 doesn’t fall into the good credit score category. Based on these ranges, it falls into the fair range.

    What Factors Impact Your Credit Score?

    Credit scores are based on five different types of information captured in your credit report:

    •   Your payment history, meaning have you paid on time

    •   Amount of debt owed, typically expressed as your credit utilization ratio, or how your balance stacks up against your credit limit

    •   Length of credit history

    •   Credit mix (for instance, have you managed both installment loans and lines of credit well?)

    •   Requests for new credit

    With a 604 credit score, you might have a mixture of high levels of debt (especially credit card balances), some late payments, and new accounts.

    When you check what your three-digit figure is on a credit scoring model, you may also receive insights into what areas you can focus on to build your score. That information helps you prioritize some of your financial decisions, like paying down debt to lower your amounts owed or pausing new credit inquiries until other ones fall off your report.

    Recommended: How to Apply for a Personal Loan

    What Else Can You Get with a 604 Credit Score?

    With a fair credit score of 604, you may be able to qualify for different types of financing. However, the offers you receive will likely not have as favorable interest rates and terms as would be available if you had a higher score. Here’s how this score impacts your ability to qualify for things like credit cards, auto loans, and more.

    Can I Get a Credit Card with a 604 Credit Score?

    Credit card companies generally don’t have a specific minimum credit score needed to qualify. Instead, the credit terms generally become less favorable when you have a lower credit score.

    For instance, you’ll likely pay a higher APR when you carry balances, since a lower credit score signals to creditors that there’s a higher risk of defaulting on payments. Additionally, you may have a lower credit limit.

    When applying for credit cards with a 604 score, focus on cards that cater to those with a fair credit score. A card with a robust rewards program, for instance, is probably designed for people with very good or excellent credit. Applying for out-of-reach cards and getting denied could increase the number of inquiries on your credit report, which chips away at your score over time.

    Credit card debt can be challenging to manage. Another option to potentially build your credit score and obtain more favorable financing terms is to roll current debt into a credit card consolidation loan.

    This kind of personal loan typically offers a lower interest rate than credit cards offer. It also turns your revolving debt into an installment loan, which can add to your credit mix and simplify your bill paying.

    Can I Get an Auto Loan with a 604 Credit Score?

    Yes, it is possible to get an auto loan with a 604 credit score. But you should expect to pay a higher interest rate than you would with a higher credit score. That means your loan would cost more over time.

    Here’s an example comparing auto loan interest rates for two different credit scores.

    •   The average APR for a new car with an excellent credit score is 5.25%, while that number jumps to 15.77% with a poor credit score.

    •   The average price of a new car is $47,542.

    •   With a 60-month loan and no down payment, the borrower with excellent credit would have a monthly payment of $903 and total interest would cost $6,616.

    •   For the same car but with the higher interest rate for a poor credit borrower, the monthly payment would increase to $1,150 and interest over time would cost $21,478.

    So while borrowers with lower credit scores can qualify to finance a car, it can be a lot more expensive.

    Can I Get a Mortgage with a 604 Credit Score?

    Conventional mortgages usually require a credit score of 620 or higher. However, there are several home loan programs designed to help qualify buyers with lower credit scores. Common options include:

    •   FHA loans: This mortgage program has a minimum credit score of 580 in order to be eligible for a 3.5% minimum down payment. You can still qualify even with a 500 credit score, but the minimum down payment jumps to 10%.

    •   USDA loans: There’s no set minimum credit score for a USDA loan, which is a type of mortgage designed to finance homes in rural areas. Most lenders look for a credit score of 640 or higher. With a 604 credit score, your lender may require extra documentation, like verifying your current rent or mortgage payments and reviewing reference letters.

    •   VA loans: This mortgage program is for veterans, service members, and eligible surviving spouses. The minimum credit score is usually 620 for most lenders, but you may be able to find one with more flexible requirements. Like USDA loans, lower credit applicants will likely need additional documents to get approved for a VA loan.

    Before you start home shopping with a 604 credit score, consider getting preapproved for a mortgage. That can help you get a realistic idea of what you’ll need to qualify and what kind of interest rate you could get. Depending on what you learn, you might decide to wait a bit before applying for a mortgage so that you can build your credit score and qualify for more options.

    Can I Get a Personal Loan with a 604 Credit Score?

    With a 604 credit score, you may be able to qualify for a personal loan, especially with lenders who specialize in making loans to borrowers with below average credit. As mentioned with other types of financing, you will likely pay higher interest rates. You may also be limited in how much you’re able to borrow, especially if you have a lot of outstanding debt already. However, given how flexible personal loans can be (that is, you can use the funds as a home renovation or travel loan), it may be worthwhile to research this option.

    Compare different loan offers from various lenders by requesting a quote that only involves a soft vs. hard credit inquiry. That way your score won’t be impacted by shopping around. A personal loan calculator shows how different loan amounts and interest rates impact your monthly payment and the overall cost to borrow.

    Recommended: A Guide to Unsecured Personal Loans

    The Takeaway

    A 604 credit score is not considered good. Rather, it falls into the fair category. While you may qualify for loans and lines of credit, you will likely have fewer options than if your score were higher, and you will probably be assessed higher interest rates. With a little time and strategy, you can likely build your score to unlock more opportunities. Consolidating high-interest balances into a single loan could help with this process.

    Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

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

    View your rate

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