Is 608 a Good Credit Score?

By Austin Kilham

A credit score of 608 is on the lower end of the “fair” range, according to FICO®, the most widely used credit scoring company. You may still qualify for some credit cards and loans with that score, but you might not be offered the best terms and rates.

Here’s a closer look at what a credit score of 608 might mean for you and how you can build your credit score.

What Does a 608 Credit Score Mean?

As mentioned, a FICO Score of 608 is considered fair. It’s also well below the average score for U.S. consumers, which is 715. Lenders may approve you for a loan with a 608 credit score. However, it may be more difficult — and more expensive — to secure the loan, and you may be offered less-favorable terms. Let’s explore why this may be the case.

Your credit score is a numerical representation of your creditworthiness, and it ranges from 580 to 850. FICO gathers credit information from the three major credit reporting bureaus: TransUnion, Experian, and Equifax. It uses this information and a proprietary credit score model to determine your score. Lenders then look at this score to help them figure out how likely you are to repay a loan.

Here’s a look at how FICO Scores are categorized:

•   Poor: 300–579

•   Fair: 580–669

•   Good: 670–739

•   Very Good: 740–799

•   Excellent: 800–850

Borrowers with higher scores have typically demonstrated that they are more responsible with credit. They likely have a long credit history and a track record of paying their bills on time across multiple types of loans and credit. Lenders are more likely to extend credit to these borrowers.

On the other hand, lenders see borrowers with lower scores as at greater risk of missing payments or defaulting on a loan. As a result, lenders may be less likely to extend credit to borrowers with lower scores. And if they do, they may offer less-favorable terms or higher interest rates to help offset the risk. Higher interest rates generally mean the cost of borrowing is greater over time.

How to Build Your Credit Score

If you’re having trouble securing a loan or are interested in lowering the cost of borrowing, consider taking steps to build your credit score.

Your credit score is calculated using many pieces of data, which are placed into five categories: payment history, amount owed, length of credit history, credit mix, and new credit. Your payment history is the most important of these categories, making up 35% of your score. As a result, one effective way to increase your score is to always pay debts on time.

The amount you owe makes up 30% of your score. So, another good way to potentially improve your score is to pay off existing debts. When lenders see you have a bit more financial breathing room, they may be more willing to offer good loan options.

You may want to avoid closing old credit accounts that you don’t use anymore, as having a longer credit history can help build your score. A mix of different kinds of credit can also be seen as positive. And you might want to avoid seeking a lot of new credit in a short period of time. It could be a red flag to lenders that you may be having cash flow problems.

What Else Can You Get With a 608 Credit Score?

You’re still likely to be able to secure various types of loans with a credit score of 608. Here’s a look at what you might expect.

Can I Get a Credit Card With a 608 Credit Score?

It’s possible that you will be able to get a credit card with a credit score of 608. However, it will likely be a challenge to qualify for the best offers, and lenders will likely offer you higher interest rates. This is something worth considering carefully, especially when it comes to credit cards, which typically carry very high interest rates already.

Credit cards are a type of revolving credit. They allow you to borrow up to a certain limit, pay back what you owe, and then borrow again. Pay off your bill every month, and you won’t owe interest. Carry a balance, however, and you can quickly rack up more debt due to interest charges. Higher interest rates can pull you deeper into debt faster.

If you’re unsure of your ability to pay off your card on time, you may reconsider getting a credit card, or wait to get one until after you’ve improved your score.

Can I Get an Auto Loan with a 608 Credit Score?

There’s no universal credit score required to get a car loan — it varies from lender to lender. That said, as with most types of borrowing, the higher your credit score, the better your chances of qualifying for financing and better terms.

With a credit score of 608, you’ll likely receive an average APR (annual percentage rate) that’s at least a few points higher than car buyers with higher scores. Putting down a higher down payment or adding a cosigner with a good credit score might help you secure a loan with a better APR.

Can I Get a Mortgage With a 608 Credit Score?

For a conventional mortgage, which is a loan not guaranteed by the federal government, you’ll typically need a credit score of 620. These are a bit out of range if your credit score is 608. However, you are not without options.

Federal Housing Administration (FHA) loans are backed by the federal government and require a FICO Score of at least 580. These loans require you to make a down payment of at least 3.5%. And if your score falls below 580, you may still qualify for a loan as long as you make a down payment of at least 10%.

It’s worth noting that increasing your down payment on a mortgage can potentially help you qualify for a loan and reduce the amount of interest a lender will charge. Why is that? A larger down payment means your loans will be smaller, your lender shoulders less of the risk, and you have more skin in the game — meaning you’re more likely to pay off the loans.

Lenders generally like to see a minimum credit score of 620 for Veterans Affairs (VA) loans, which are designed for U.S. military veterans and their families. The same is usually true for United States Department of Agriculture (USDA) loans, though credit score requirements for may vary by lender.

Can I Get a Personal Loan With a 608 Credit Score?

Personal loans can be used for many reasons, from funding home improvements to paying off bills. As with credit cards and mortgages, it’s still possible to get a personal loan with a credit score of 608, though you could find it more of a challenge. Lenders may offer higher interest rates, higher fees, and stricter requirements.

Still, you may find that personal loans offer lower interest rates than other types of credit, such as credit cards. A personal loan calculator can help you figure out how much you might save by paying off an existing loan or credit card with a personal loan.

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 instance, you may be able to simplify your finances and save money.

The Takeaway

Is 608 a bad credit score? Not necessarily — it’s considered fair. A credit score of 608 will limit the types of credit products that you’ll have access to, and in some circumstances may make borrowing more expensive.

If you have enough time before you need to take out a loan, consider doing what you can to build your credit score. Doing so can help you qualify for credit and loans that better suit your needs and potentially save you money over the long term.

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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