Is 627 a Good Credit Score?

By Jamie Cattanach

A credit score of 627 is not a good score. Rather, it’s considered fair. Borrowers with a 627 credit score may qualify for some loans and credit cards, but with less favorable rates and terms than those with a higher number.

Here, take a closer look at what your 627 credit score means, including what doors it can unlock for you — and how you might build your score to qualify for more credit products or those with more competitive terms.

What Does a 627 Credit Score Mean?

As mentioned above, a 627 credit score is in the fair category. The fair credit score range is higher than the lowest category (poor) but lower than the good, very good, and excellent categories.

Here’s how the credit score ranges stack up:

•   Poor: 300-579

•   Fair: 580-669

•   Good: 670-739

•   Very Good: 740-799

•   Excellent: 800-850

Currently, the average American’s credit score is 717, so your current score is considerably lower than that of most people. Perhaps you are new to using credit or have missed some debt payments in the past, which lowered your credit score.

As you see, the fair credit score range starts at 580 and runs to 669. If you build your credit score to 670, you’ll be in the good category of FICO® Scores (the most popular system of credit scoring). This can make it easier to qualify for loans — and to get better terms for the loans you do take out, including potentially lower interest rates.

Recommended: What Credit Score Do You Need for a Personal Loan?

How to Build Your Credit Score

Building your credit score is all about persistence and creating consistent habits that can have a positive affect on your score.

For example, your payment history accounts for fully 35% of your FICO credit score, which is the highest weight of any factor. Payment history simply refers to how often you’ve made your debt payments on time.

That means that, even without taking any other action, making on-time payments can have a positive impact on your credit score. Keeping a lower total debt balance by paying down any revolving balances you carry can build your credit score. That’s because the amount you owe versus the amount of credit you have available counts for another 30% of your score, the second most highly weighted category.

What Else Can You Get With a 627 Credit Score?

Whether or not you focus on building your credit score, a 627 FICO score can still unlock access to credit. Here’s a closer look at which types of loan products you’re likely to qualify for.

Can I Get a Credit Card With a 627 Credit Score?

Typically, you need a credit score of 670 or higher to qualify for an unsecured credit card with a competitive interest rate. That said, plenty of card issuers offer credit cards specifically designed for those with fair, poor, and even nonexistent credit. However, these products usually involve higher interest rates, and credit cards are already known for often having high interest rates. It’s important to think carefully about whether you can truly afford to use a card with a higher interest rate.

Another option you may find is a secured credit card. These allow you to put down a cash deposit as collateral (therefore making the deal less risky for the issuer). Typically, that cash deposit acts as your credit limit, capping how much you spend. Activity on these cards is reported to the credit bureaus and can help you build your credit history. You may be able to graduate from a secured card to an unsecured card after showing that you’ve managed your debt responsibly.

You will likely need to build your score into the very good or higher range in order to qualify for credit cards that offer lower interest rates and more rewards, such as points or cash back.

Tip: Focus on paying off your credit card every month in full on the due date to avoid ever paying any interest on your purchases.

Can I Get an Auto Loan With a 627 Credit Score?

There’s not a specific minimum credit score required to take out an auto loan. Some lenders will want to see a 670 credit score or higher. Others will approve loans to those with a 600 or higher score. Some people may qualify with an even lower score.

What usually occurs is that the lower your credit score, the more interest you will pay for the privilege of borrowing cash for a car purchase. For instance, at the end of 2024, those with a credit score between 781 and 850 would on average be assessed an interest rate of 5.25% for a new car loan and 7.13% for a used car loan, according to Experian® research. For those with a score of 627, the rates would be higher: 9.83% for a new car loan and 13.92% for a used car loan. These higher interest rates can cost you thousands of additional dollars over the life of a loan.

If you have a lower credit score, it may make more financial sense to purchase a cheaper car in cash rather than to apply for a car loan. It can be worthwhile to consider this and other approaches when you need to buy a car.

Can I Get a Mortgage With a 627 Credit Score?

Excellent news: If you’re in the market for a new home, your 627 credit score can make the cut. Most conventional home lenders require a minimum credit score of 620, which means your score is just on the right side of the equation.

Again, however, a higher credit score can help you get a lower interest rate. Additionally, keep in mind that your mortgage lender will be looking at other factors as well, including your income, job stability, how much debt you carry, the amount you have saved, and more. In other words, your credit score isn’t the end of the story.

Also, there are certain types of loans that can be available to those with lower credit scores at the discretion of the lender. These can include FHA, VA, and USDA loans. Depending on a variety of factors, you may qualify for these programs.

Can I Get a Personal Loan With a 627 Credit Score?

Personal loans are usually unsecured loans, meaning they aren’t secured by any kind of collateral. They typically have a fixed interest rate that’s considerably lower than that of credit cards, and they have one- to seven-year terms in most cases. The lump sum amount you receive with a personal loan can range from $1,000 to $100,000.

Borrowers can use the funds for just about any purpose they want. For instance, you might use the funds for a kitchen remodel or to pay for a wedding. These loans do, however, tend to come with stricter eligibility requirements than other types of loans.

With a credit score of 627, you may or may not qualify for a personal loan. For instance, you might only be approved by a lender who charges you a higher interest rate than they would charge those with higher scores. Still, using a personal loan to consolidate debt could help build your credit score over time and may still be worth it in the long run, even if the interest rate is somewhat higher than you would like.

If you are contemplating a personal loan for any purpose, a personal loan calculator can help you understand the total cost of your loan over its lifetime. This can be a valuable step before you decide whether or not to forge ahead.

Recommended: How to Apply for a Personal Loan

The Takeaway

A credit score of 627 is in the fair category, which is below the good range. You may still qualify for some types of loans and lines of credit, though you likely won’t get the lowest interest rates and most favorable terms. Those tend to be reserved for those with very good or excellent scores. If you work on building your credit score into the good or higher range, you should have more competitive options to choose among for products like car loans, mortgages, credit cards, and personal loans.

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.

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