Is 625 a Good Credit Score?
If you have a 625 credit score, you’re considered to have fair but not good credit. A credit score of 625 is also lower than 715, the current national average credit score according to FICO®. There are lenders who will approve different types of loans, mortgages, and credit cards to people with a 625 credit score. However, your choices will likely be more limited and your interest rates higher than if your score was in the good, very good, or excellent category.
Read on to get a closer look at what a 625 credit score means, the opportunities out there for people with a fair score, and things you can do to work toward building your credit.
Key Points
• A 625 credit score is considered fair; it is not good, but it is above the poor or bad category.
• With a 625 credit score, you can still qualify for loans, mortgages, and credit cards, though not with the best terms.
• Higher interest rates and more stringent requirements are common for those with a 625 credit score.
• Having a higher credit score can help unlock lower interest rates and benefits, such as credit card rewards programs.
• Making timely payments and lowering your credit utilization can help build your credit score over time.
What Does a 625 Credit Score Mean?
As mentioned above, a score of 625 is categorized as fair, according to FICO®, the main credit scoring agency used by 90% of lenders. People in the fair credit score category are those who have a credit score falling somewhere between 580 to 669. According to Experian®, 16% of people have a credit score in the fair range.
To give you more of an overview, here are the five categories of credit score ranges per FICO®:
Here’s the FICO scale
| 300 to 579 | Poor |
| 580 to 669 | Fair |
| 670 to 739 | Good |
| 740 to 799 | Very Good |
| 800 to 850 | Exceptional or excellent |
Source: FICO
While you can qualify for some loans and credit cards with a fair credit score, you probably won’t be offered the types of terms as someone with better credit. Some points to consider:
• Lenders view those with a 670 credit score or higher as less risky because they have shown they can manage their debt responsibly.
• Being creditworthy in a lender’s eye results in more favorable terms, such as lower interest rates and higher credit or loan limits.
• With a fair credit score vs. good or higher, you may be considered more of a risk. You may have a credit history with missed or late payments and/or have high credit card utilization, possibly even maxing out one or more cards.
What Else Can You Get with a 625 Credit Score?
Having a 625 credit score can present some challenges accessing credit, but it’s possible to obtain a mortgage, auto loan, personal loan, or a credit card with this specific score.
Here’s how a credit score of 625 factors into your ability to access different types of credit, what you may be more likely to qualify for, and things you should expect if you do get approved. You may also want to take steps to build your credit score, such as always making debt payments on time and lowering your credit utilization.
“Late payments can have a large effect on your credit score for a long period of time. If there are any late payments in your history, you may be able to minimize their impact by creating a record of on-time payments in the future. Setting up autopay is one way to make sure payments are made regularly and on time.”
-Brian Walsh, CFP® and Head of Advice & Planning at SoFi
Can I Get a Credit Card with a 625 Credit Score?
There’s no minimum credit score needed for a credit card, which is good news for someone with fair credit. However, accessing this kind of credit may be costly. Here, some credit card options you probably have if your score is 625:
• Secured credit card: A secured credit card requires you to put down a cash deposit that becomes the card’s credit limit. The money acts as collateral in case the cardholder defaults on their payment. Secured cards can be a great way to build or rebuild credit, allowing you to show you can manage credit cards responsibly.
• Unsecured credit card: This type of card is the more traditional type of credit card and generally you can find unsecured credit card offers for credit scores of 590 or above. The main difference between a secured and unsecured card is you don’t need to fork over a cash deposit. That’s because the creditor is trusting you to pay back what you’ve charged on the card. With a 625 score, you likely won’t be eligible for the best unsecured credit card offers, such as ones with perks like cash back, travel rewards, or a 0% introductory or low annual percentage rate (APR).
• Store credit cards: Also called retail credit cards, store credit cards are issued by specific retailers and usually restricted to purchases at certain stores, chains, or gas stations. These types of cards tend to have easier approval processes and more flexible requirements. One thing to keep in mind: retail cards do often come with high APRs, some even as high as 35.99%.
Can I Get an Auto Loan with a 625 Credit Score?
The good news is yes, you can get a car loan with a fair credit score. It’s important to know though, your interest rate will be higher compared to people with scores in the good to exceptional range. You also may need to provide more of a down payment with a fair credit score.
According to a fourth-quarter 2024 report from Experian, for a person with a fair credit score the average APR for a new car loan is 9.95%, and 14.46% for a used car loan. The rates improve from there. For example, someone in the next tier up has an average new car APR of 6.40%, and 9.95% for a used one. A lower interest rate can make a significant difference over the life of a loan.
There are several ways you can improve the possibility of being approved for an auto loan and reducing your interest rate. One is to shop around and compare offers from various lenders, including credit unions, banks, and online auto lenders. Another is to add a trusted loved one who has a higher credit score as a cosigner on the loan. Or simply save up your money so you can put down a larger down payment. Doing so can reduce the entire loan amount and the lender’s financial risk.
Recommended: Smarter Ways to Get a Car Loan
Can I Get a Mortgage with a 625 Credit Score?
Most conventional home loan lenders require a minimum score of 620, so if you have a 625 credit score, you’re eligible to get one. Conventional lenders are those not backed by a government agency such as the U.S. Department of Housing and Urban Development (HUD) or the U.S. Department of Veterans Affairs.
People with scores above the fair credit tier are typically offered better terms, such as lower mortgage interest rates. A fair credit score may also result in a higher down payment versus someone with a good, very good, or exceptional score.
It’s important to know just having a score that makes the cut isn’t the only thing conventional lenders consider when you apply. They will also look at other factors, such as your income, your debt-to-income (DTI) ratio, employment status, and any assets or cash reserves.
A conventional loan isn’t the only option out there for people with fair credit. Different types of home mortgages you can apply for include those insured by the federal government, such as a FHA loan, VA loan, and USDA loan. These may be available to those with credit scores as low as 500 and with varying down payment requirements.
Can I Get a Personal Loan with a 625 Credit Score?
Personal loans can be a valuable source of cash, whether you use it to pay for vacation expenses or a major car repair bill. And yes, you can get a personal loan with a 625 credit score. However, just like with other types of loans and credit cards, you may not qualify for the best terms, such as lower interest rates. Additionally, you may only get approved for a lower loan amount and/or a shorter loan term than someone with a good or better credit score.
One popular way that these loans can be used is to consolidate credit card debt. Even if you are assessed a higher rate on the loan than those with a loftier credit score, it may still be less than the high interest charged by a credit card. In addition, having one monthly payment instead of multiple credit card bills can be convenient.
If you’re considering taking out a personal loan to pay off your credit cards, an online personal loan calculator can help you figure out how much interest you could possibly save.
Recommended: Will a Personal Loan Build Credit?
The Takeaway
A 625 credit score is neither good or bad, but rather categorized as fair, which is the range that runs from 580 to 669. With a fair credit score, you still have opportunities to get credit cards and different kinds of loans, however you won’t get the same perks, such as lower interest rates or more favorable terms, as someone who has a good, very good, or exceptional credit score. If you’re looking to access credit cards or apply for certain loans, it might be worth waiting until you can build your credit score. Whichever path you choose, do get offers from multiple lenders so you can find the right loan for your needs.
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.
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