Is 623 a Good Credit Score?

By Bob Haegele

A good credit score unlocks numerous possibilities for borrowers, such as better approval odds and lower rates. If your score is 623, you may wonder if it’s high enough to be in the “good” range, potentially leading to favorable treatment from lenders.

A 623 credit score is considered “fair,” and sits one tier below “good” credit (which starts at 670). While a 623 score doesn’t quite land you in the good range, you still have several borrowing options. This includes potentially getting a credit card, mortgage, auto loan, or personal loan.

What Does a 623 Credit Score Mean?

A 623 credit score is considered fair under the FICO® scoring model. Credit scores generally fall into these categories:

•   Poor: 300-579

•   Fair: 580-669

•   Good: 670-739

•   Very Good: 740-799

•   Excellent: 800-850

A 623 score is better than “poor” credit but is below the average score of U.S. consumers, which is 715. As a result, you may encounter challenges securing loans or credit with favorable terms. However, many lenders will approve loans with this score.

You may have a 623 score due to past financial missteps, such as making payments more than 30 days late, having balances sent to collections, and/or a major negative event like a foreclosure or bankruptcy. To see exactly why you have fair credit, you’ll want to read through your credit reports. You actually have three — one from each of the credit reporting agencies (Equifax®, Experian®, and TransUnion®). You can order a free copy of each report by visiting AnnualCreditReport.com.

What Else Can You Get with a 623 Credit Score?

Your credit score influences the types of credit products you qualify for, from credit cards to home loans. Let’s explore how a 623 credit score affects your ability to get different types of financial products, including credit cards, auto loans, credit cards, and personal loans.

Can I Get a Credit Card with a 623 Credit Score?

Yes, you can qualify for a credit card with a 623 credit score, but your options may be limited. You might not qualify for premium rewards cards, but you can likely get a:

•   Secured credit card: A secured credit card is designed to help you build credit. It requires putting down a security deposit that then becomes your credit limit, reducing risk to the lender. If you demonstrate responsible use of a secured credit card, you may be able to transition to an unsecured credit card.

•   Store credit card: A store credit card is issued by a specific retailer and can usually be used only at that retailer or within their retail group. Store cards often have lower credit score requirements and may offer rewards that are useful if you already shop at that store or group of stores. However, these cards tend to carry high interest rates.

•   Basic unsecured card: Some lenders offer unsecured credit cards (meaning no upfront deposit is required) for borrowers with fair credit. These cards may even offer basic rewards like being able to earn points or cash back. However, they may charge an annual fee and higher-than-average interest rates.

Can I Get an Auto Loan with a 623 Credit Score?

Auto loans are attainable with a 623 credit score. However, lenders may view you as a moderate-risk borrower, which can result in:

•   Higher rates: According to a fourth-quarter 2024 report from Experian, the average interest rate for a car loan for borrowers with scores between 601 and 660 was 9.59% for a new car loan and 14.46% for a used card loan. For borrowers with scores between 781 and 850, the average rates were significantly lower — 4.77% and 7.67% respectively.

•   Larger down payment requirements: Some lenders may require a higher upfront payment and offer a lower loan amount to offset perceived risk.

•   Limited loan options: You may not qualify for the best car financing deals from traditional banks and credit unions.

Keep in mind that lenders will look at more than your credit score when deciding whether to approve you for an auto loan and at what rate. Typically, they will also consider your income, length of employment, and debt-to-income ratio (how much of your monthly income goes toward paying off your debts).

Recommended: Smarter Ways to Get a Car Loan

Can I Get a Mortgage with a 623 Credit Score?

Yes, it’s possible to get a mortgage with fair credit, but you may not qualify for the best rates and terms. Here’s what you may be able to get with a 623 score:

•   A conventional mortgage: The most common type of home loan, a conventional mortgage isn’t backed by a government agency but often meets the down payment and income requirements set by the government-sponsored entities Fannie Mae and Freddie Mac. You generally need a credit score of at least 620 to qualify for a conventional loan, though having a score of 740-plus can help you get the best rate.

•   FHA loan: The Federal Housing Administration (FHA) allows borrowers with credit scores as low as 500 to qualify for a mortgage with a 3.5% down payment. If your score is below 580, you may need a 10% down payment.

•   VA loan: If you’re a veteran, servicemember, or surviving spouse, you may be able to get a Department of Veterans Affairs (VA) home loan. VA loans don’t have strict minimum credit score requirements, but lenders typically prefer scores of 620 or higher.

Building your credit profile before applying for a mortgage can help you secure better rates and terms, potentially saving you thousands over the life of the loan.

Can I Get a Personal Loan with a 623 Credit Score?

Yes, a 623 score is sufficient to get a personal loan, including a credit card consolidation loan, but it may not unlock a lender’s best offers. You generally need a minimum credit score of 580 to qualify for a personal loan, but a score of at least 700 to qualify for the most favorable rates and terms.

Some (though not all) lenders also charge an origination fee that’s deducted from your loan amount. With fair credit, you may find it harder to find a lender that does not charge this fee.

To get the best possible deal on a personal loan, it’s wise to:

•   Shop around. Consider looking beyond traditional banks. You might check out online lenders, which tend to offer loans to borrowers across the credit range, as well as credit unions, which often have more lenient borrowing requirements compared to banks.

•   Prequalify if you can. Prequalifying for a personal loan can give you an idea of the rates and terms you will be offered without negatively impacting your credit.

•   Consider adding a cosigner: Adding a cosigner with a better credit score or higher income could help you qualify or get a better rate. Keep in mind that if you fail to repay the loan, your cosigner is responsible for repayment.

•   Present all of your income: Lenders will also look at your income when you apply for a personal loan to make sure you can afford the payments. Be sure to list income from all sources, including employment, Social Security, alimony, child support, and retirement.

•   Add collateral: Most personal loans are unsecured, meaning you don’t need to pledge an asset (like a car or savings account) to secure your loan. If you’re having difficulty getting a good rate on a personal loan, however, you might consider applying for a secured loan.

The Takeaway

A 623 credit score is considered fair and provides access to financial products, but often at higher costs. While you can qualify for credit cards, auto loans, mortgages, and personal loans, the terms may not be ideal. Working to build your credit profile — by making on-time payments, reducing debt, and having a mix of credit types in your file — can help you qualify for better rates and financial opportunities 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.

View your rate