Is 637 a Good Credit Score?

By Jackie Lam

A 637 credit score is neither good nor bad. It puts you squarely in the fair category, which is above a poor rating but below a good score.

Your credit score of 637 is 33 points below the range of good credit, which typically starts at 670. What’s more, it’s 80 points below the current national credit score average of 717. While you may well find lenders or creditors to approve a loan or credit card, you’ll likely have higher interest rates and less flexible terms than if you had a higher score.

What Does a 637 Credit Score Mean?

A credit score gauges your creditworthiness, or how likely you are to demonstrate responsible borrowing behaviors, such as paying back your loans on time. Your three-digit score reflects how well you’ve managed credit in the past. Lenders and creditors use credit scores to determine whether to extend you financing, such as a mortgage, car loan, credit card, or personal loan, and with what kind of terms.

Some details to know about credit scores:

•   You have three credit reports from the major credit bureaus: Experian®, Equifax®, and TransUnion®.

•   Credit scores are based on scoring models such as FICO® or VantageScore. A lender might also have its proprietary algorithm.

•   There are dozens of different scoring models within these scoring models. You can also have different credit scores, which might be used for different purposes, such as insurance policies or taking out a car loan.

•   The FICO Score is the most popular credit scoring model in the U.S. The credit score ranges from 300 to 850; the higher the number, the better the score.

The breakdown for the FICO credit score ranges is as follows:

•   Poor: 300-579

•   Fair: 580-669

•   Good: 670-739

•   Very Good: 740-799

•   Excellent (or exceptional): 800-850

A score of 637 hovers in the fair range, and, as you see, does not make the cut as a good credit score.

What Else Can You Get With a 637 Credit Score?

With a credit score of 637, you have less-than-stellar credit and are considered a higher-risk borrower. Getting approval for that loan or line of credit might take a little more effort. On top of fewer options, the ones made available to you might come with higher interest rates and other drawbacks.

So while you may be approved for most financial products with a 637 credit score, you’ll probably pay more for the same amount of money borrowed due to that higher interest rate. If you are applying for a credit card, in addition to paying a higher interest rate, you may not be offered the same credit card rewards (such cash back or points) as you would with a higher credit score. Here’s a closer look.

Can I Get a Credit Card With a 637 Credit Score?

What kind of credit cards can you get with a 637 FICO score? Typically, you need a 670 credit score for a basic credit card. That said, you may qualify for some unsecured credit cards with a credit score in the fair range. Just note that with fair credit, the card offered will likely charge you a higher interest rate (and credit cards offered to those with good or better credit scores are already considered high-interest). In addition, it will probably lack the rewards, like travel perks, given to those with very good or excellent credit.

With fair credit, here are some other types of credit cards you’ll likely have higher odds of getting approved for:

•   A secured card can be a solid route if you have fair credit and are working to build your score. These cards tend to have less rigid credit and financial requirements, lower credit score requirements, and higher debt-to-income (DTI) thresholds.

With a secured card, you typically need to put down a security deposit, which can match your credit limit. So, if you put down a $500 security deposit, your credit limit is also $500. In general, secured cards have lower credit limits.

Some cards allow you to move up from a secured card to an unsecured card after making a series of on-time payments.

•   Retail or store cards, like secured cards, usually have looser credit requirements, making them easier to qualify for. You may also hear them referred to as closed-loop cards, which means you can only use them at one retailer or retail group. This is compared to an open-loop card used anywhere the credit card network (i.e., Visa, Mastercard, American Express) is accepted.

While retail or store credit cards are easier to get, they also might come with higher interest rates. Plus, their “interest-free” plans might be a deferred interest plan. In other words, if you don’t pay off the balance in time, you’ll be on the hook with all the accruing interest.

If you feel like your options are limited, don’t despair. Points to consider:

•   Creditors don’t just look at your credit score; other factors like your income, education, and debt-to-income ratio (DTI) are also considered.

•   If you want a credit card with a higher credit score, practicing sound credit-building behaviors, such as always making on-time payments, lowering your debt load, not applying for credit too often, having a mix of credit (such as installment loans and lines of credit), and maintaining as long a credit history as possible. These moves can have a positive impact on your credit score.

Can I Get an Auto Loan With a 637 Credit Score?

You’ll likely be able to land an auto loan with a 637 credit score, but, as mentioned above, a lower score usually equates to higher interest rates.

According to data compiled by Experian, in the second quarter of 2024, the average interest rate for someone with a credit score between 601 and 660 for a new car was 9.83% and, for a used car, 13.92%. For those with a score between 781 and 850, the interest rates fell to 5.25% and 7.13%. Over the term of a loan, those rate differences can have a real impact on the total amount you’ll pay.

As you think about getting a car loan, it’s also important to look at the total cost of the car, which includes insurance premiums, the cost of gas, and repairs and maintenance. That way you can adequately size up the total outlay of funds before you apply for an auto loan, which can in turn help you stick to your budget.

Can I Get a Mortgage with a 637 Credit Score?

Yes, getting a mortgage with a 637 credit score is possible. The lending criteria and credit score requirements hinge on the type of home loan:

•   Conventional home loan: For a conventional home loan, you’re often looking at a minimum credit score of 620. (Some lenders, however, may require 640 or 660 and up.)

•   FHA loan: Mortgages backed by the Federal Housing Administration (FHA) usually require a credit score of at least 580 and a 3.5% down payment. If those two criteria are met, you’ll probably be able to get access to the most financing available for FHA loans.

•   VA loans: Home loans available through the U.S. Department of Veteran Affairs often require you to have at least a score in the range of 620 or 640. However, some lenders may approve applicants with a lower score, such as 580 or more.

•   USDA loans: Loans offered by the USDA generally need you to have a minimum credit score of 640. If you don’t have a 640 credit score, you must undergo a full credit review before landing a USDA loan.

When you have a fair credit score and aren’t rushing to buy a home, you can work on building your credit score to have a broader range of options and possibly land a lower interest rate.

Can I Get a Personal Loan With a 637 Credit Score?

The beauty of personal loans is that they’re very flexible in their use. They’re typically unsecured, offer a fixed rate, and have terms of two to seven years. You might borrow, say, $1,000, or some lenders might extend you a personal loan of $100,000.

You can use personal loans for almost any legal purpose you can think of, such as:

•   Paying for a home renovation

•   Consolidating credit card debt into a single monthly payment, usually at a significantly lower interest rate (you may need a score of 640 or 670 and up to qualify)

•   Taking care of a major medical, dental, or car repair bill

•   Financing a wedding or a vacation

•   Funding family planning costs, such as IVF or adoption expenses

It’s possible to secure a personal loan when you have a 637 credit score; offers tend to become available with a score of 580 and up. However, you’ll likely have to pay higher interest rates and less favorable terms than if your score were higher. Those with scores of 740 or more tend to get the lowest interest rates. With a fair credit score, you also might need to settle for a smaller loan amount than you were hoping for.

Still, take note: A benefit of a personal loan is that the interest rates are usually lower than what you’d find with credit cards. Per the Federal Reserve, in 2024 the average interest rate for a 24-month personal loan is 12.33%, whereas the average rate for credit cards is 21.76%. So even if you pay a higher interest rate on that personal loan with fair credit, you’re likely paying less than a credit card. You can use a personal loan calculator to run the numbers and see what your payments would look like.

Recommended: What Are Personal Loans Used For?

The Takeaway

A 637 credit score isn’t good. Technically, it falls in the fair credit range, which means you will likely face some challenges getting approved for credit. You might be denied by some lenders or face higher interest rates than those who have loftier scores. However, if you build your credit score, you will likely enjoy more options (and more affordable ones) for credit cards, auto loans, mortgages, 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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