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Bank Accounts for International Students
How to open a U.S. bank account as an international student.
If you’re an international student, opening a bank account in the U.S. can smooth your transition to university and make it easier to manage tuition and rent payments, as well as day-to-day expenses. Having a domestic account can also help keep your money secure and eliminate foreign transaction fees. Here’s how to open an international student bank account with SoFi.
Open an account
What you need to get started.
To open an international student bank account, you’ll need to be at least age 18 and provide specific documents to verify your identity and address. We’ll ask you for:
Identification
You’ll need to present a photo ID, such as a valid passport or government-issued ID.
Proof of address
You’ll also need to show proof of your U.S. address, which may be your dorm room or off-campus apartment. For this, you can use a student ID with an address and photo, a utility bill, lease agreement, or letter from the university documenting the address.
Tax identification number
To be eligible for a student account, you’ll need to provide a tax ID number, such as a U.S. Individual Taxpayer Identification Number (ITIN) issued by the Internal Revenue Servicer (IRS).
Apply for a U.S. bank account in 3 steps:
In general, there are several different types of U.S. bank accounts that international students might apply for, such as the individual and joint accounts that SoFi offers (we don’t currently offer business or trust accounts). Here, you’ll learn the basic steps for applying for a SoFi Checking and Savings account when you are an international student.
Gather the required documents
Make sure you have your photo ID, proof of address, and other required documents. Double-check that all documents are valid and up-to-date to avoid any delays in the application process.
Open the account online
You can apply for a SoFi Checking and Savings account as an international student online. You’ll simply need to create a log-in, fill out an application form, and submit scanned copies of your documents.
Make a deposit
Once your account is approved, you can make an initial deposit via online transfer or wire. Additionally, you can also deposit cash into your student account at participating retailers using your SoFi debit card (note that a fee may be charged).
Open an account
Benefits of opening a U.S. bank account.
Here’s how a U.S. bank account can provide financial convenience, security, and stability for international students while studying abroad.
FAQs
Can I open a US bank account without a US address?
As an international student, you need to present proof of address in the U.S. to open a SoFi Checking and Savings account. This could be your dorm address.
Can I open a US bank account without an SSN?
Yes, you can open a U.S. bank account without a Social Security number (SSN). To open a SoFi Checking and Savings account, you can submit an Individual Taxpayer Identification Number (ITIN) instead of an SSN. This can be obtained from the Internal Revenue Service (IRS) or an IRS-authorized Certifying Acceptance Agent.
Can international students open a US bank account?
Yes, international students can open a U.S. bank account. To open a SoFi Checking and Savings account, you can upload such documents as a valid photo ID and proof of U.S. address, as well as providing your SSN or ITIN. If you want to take advantage of SoFi’s sign-up bonus offer for students, you’ll need to use your .edu email address when doing so.
Can international students open a US bank account without a parent?
An international student can open a SoFi Checking and Savings account without a parent, provided they are 18 years of age or older, and that they have the required credentials, such as photo ID, a U.S. address, and an SSN or ITIN.
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Bank Accounts for Non-Permanent Residents
How to open a U.S. bank account as a non-permanent resident.
If you’re new to the U.S., having a domestic bank account can make your financial life simpler and more secure. Here’s key information on how to open a SoFi Checking and Savings account as a non-resident, including eligibility requirements, what you’ll need, and the steps to follow.
Open an account
What you need to get started.
To open an online bank account as a non-permanent resident, you’ll need to provide identification, a tax identification number, and proof of a U.S. address. You’ll also need to be 18 years old or older and provide an email address and phone number.
Photo ID
You’ll need to provide an official, government-issued photo identification document to prove your name and birth date. Eligible documents include an unexpired passport, driver’s license with photo, U.S. Employment Authorization Card with photo, and student ID with photo.
Proof of Address
You may also need to show proof of your U.S. address. For this, you can use a government-issued photo ID, current utility bill (electricity, water, internet, etc.) with your name and address, an employer paycheck or pay stub, or a copy of your lease agreement.
Identification Number
SoFi Checking and Savings accounts pay interest, which is taxable. To comply with tax-reporting requirements, you’ll need to provide a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN). If you’re not a U.S. citizen, you can apply for an ITIN through the International Revenue Service (IRS).
Apply for a U.S. bank account in 3 steps:
At this time, SoFi offers individual and joint SoFi Checking and Savings accounts (trust and business accounts are not currently available). Here, you’ll learn the three basic steps needed to open a U.S. bank account for non-residents.
Gather the required documents
Before you begin your application, you’ll want to make sure you have all of the documents required to open an account, including a valid photo ID, proof of address, and an SSN or ITIN. You’ll also need to have the name and contact details for your U.S. employer.
Open the account online
You can apply for a non-resident bank account with SoFi online. You’ll enter your personal information, citizenship status, and SSN or ITIN. You’ll also need to select your employment status, employer details, and upload the required documents.
Make a deposit
Once approved, you can deposit funds into your new checking account via online transfer or wire. You can also make cash deposits at participating retailers using your SoFi debit card (some retailers may charge a fee).
Open an account
Benefits of opening a U.S. bank account.
While it’s possible to function in the U.S. with a foreign bank account, having access to a U.S. bank account comes with a number of advantages.
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FAQs
Can a non-citizen open a bank account in the US?
Yes, a non-citizen can open a bank account in the U.S. provided they have the proper documentation. To open a SoFi Checking and Savings account as a non-citizen, you will need a valid photo ID and an SSN or ITIN, which you’ll enter along with other personal details.
Can I open a US bank account without a US address?
Currently, you cannot open a SoFi Checking and Savings account without a physical U.S. address.
Can I open a US bank account without an SSN?
Yes, it’s possible to open a U.S. bank account without a Social Security number (SSN). If you don’t have an SSN, you can open a SoFi Checking and Savings account with an Individual Taxpayer Identification Number (ITIN) instead. To get an ITIN, you usually need to fill out a form with the Internal Revenue Service (IRS).
How do I receive/send money locally or from abroad?
At SoFi, domestic but not international wire transfers are available for sending and receiving funds. Within the United States, you can also complete a bank transfer in the app. Or you might write or deposit a check or use a bill pay option.
• Mortgage refinance rates in Georgia are influenced by the 10-year U.S. Treasury Note and housing inventory levels, among other factors.
• Mortgage refinancing can help you lower your monthly payments, pay off your loan faster, or get some cash out.
• A 1% drop in your mortgage interest rate could put $175 back in your pocket every month on a $300,000 loan.
• The shorter your loan term, the higher your monthly payments will be, but the less total interest you’ll pay over the life of the loan.
• Keep in mind that closing costs for refinancing generally fall between 2% and 5% of the loan amount.
Introduction to Mortgage Refinance Rates
Mortgage refinancing is the process of replacing your existing mortgage with a new one, often with more favorable terms and a lower interest rate. Whether your goal is to lower your monthly payment, pay off your loan faster, or get some cash out, the type of mortgage refinance you choose will play a big role in the interest rate you get. In this guide, we’ll explain how mortgage refinance rates work and give you the knowledge you need to get the best rate in Georgia. By staying up to date on mortgage refinance rates in Georgia, you can make the best decision for your financial future.
Mortgage refinance interest rates are a product of economic influences and your unique financial standing. For the strongest indicator of where current mortgage rates are headed, look to the 10-year U.S. Treasury Note. When rates on the note rise, mortgage interest rates tend to rise too. Then there’s the Georgia housing market. When inventory is high in your region of the state, lenders may lower rates to draw in homebuyers.
The overall economy also exerts an influence. A strong jobs market and economic growth can nudge interest rates higher, while a recession typically leads to lower interest rates. And let’s not forget your personal financial metrics: A high credit score and low debt-to-income ratio will position you to secure the best possible rate.
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Interest rates play a crucial role in the affordability of your refinance. Your monthly payment hinges on your home loan amount, repayment term, and the interest rate you secure. For instance, a $200,000 loan with a 6.00% interest rate and a 30-year term translates to a monthly payment of $1,199. Should the interest rate climb to 8.00%, the monthly payment would bump up to $1,467. The difference? Nearly $100,000 over the loan’s lifetime. Even a small shift in the current mortgage refinance rates in Georgia can lead to substantial savings.
Why Refi in Georgia?
Refinancing your mortgage can be a game-changer. If the current interest rates are in your favor, it’s a golden opportunity to lower those monthly payments and save a bundle in the long run. Before you take the leap, make sure you’ve got at least 20% equity in your home, especially if you’re eyeing a cash-out.
Common Reasons to Refinance a Mortgage
Homeowners refinance for a variety of reasons
• To secure a lower interest rate due to improved credit or market conditions
• To change repayment terms for lower monthly payments or faster payoff
• To cash out home equity to cover major expenses like tuition
• To change from an adjustable-rate to a fixed-rate mortgage
• For FHA loans, to ditch mortgage insurance once you reach 20% equity
• To remove a cosigner from the mortgage
How to Get the Best Available Mortgage Refi Interest Rate
Interest rates are partly determined by the homeowner’s financial situation, so here are some things you can do to prepare and hopefully boost your chances of getting a competitive interest rate:
• Boost your credit score, by always paying bills on time.
Understand Trends in Georgia Mortgage Interest Rates
The financial world is always changing, and mortgage interest rates fluctuate as a result. In 2025, interest rates are expected to hold steady for an extended period. But remember that the rates you see advertised are just averages. You could earn a higher or lower rate, depending on your credit score, DTI ratio, and other metrics.
Historical U.S. Mortgage Interest Rates
Here’s an even broader view of historical interest rates. It’s unusual for rates to go below 5.00%, as they did during the height of the pandemic, or rise above 10.00%, as in the 1980s.
Historical Interest Rates in Georgia
This chart shows how Georgia mortgage refi interest rates have stuck pretty close to the national rates from 2000 to 2018.
Year
Georgia Rate
National Rate
2000
7.96
8.14
2001
6.90
7.03
2002
6.45
6.62
2003
5.72
5.83
2004
5.69
5.95
2005
5.87
6.00
2006
6.56
6.60
2007
6.37
6.44
2008
6.05
6.09
2009
4.95
5.06
2010
4.75
4.84
2011
4.52
4.66
2012
3.64
3.74
2013
3.80
3.92
2014
4.12
4.24
2015
3.85
3.91
2016
3.72
3.72
2017
4.07
4.03
2018
4.58
4.57
Source: Federal House Finance Agency
Choose the Right Mortgage Refi Type
Mortgage refinance rates can also vary based on the type of refi you select. Here are some popular options:
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, gives you the ability to adjust your interest rate or repayment length. These loans typically offer higher interest rates compared to government-backed options. Some lenders offer a no-closing-cost refinance, in which the fees associated with the refi are rolled into the mortgage balance. Two examples of conventional refis are a 15-year mortgage refi and an adjustable-rate mortgage refi.
15-Year Mortgage Refi
Opting for a 15-year mortgage refinance can be a game-changer, slashing your total interest payments over the loan’s lifetime, despite the higher monthly costs. Here’s an example: If you borrow $300,000 at 6.00% interest and a 30-year term, you’ll pay $1,799 per month. Borrow the same amount at the same interest rate but choose a 15-year term and you’ll pay $2,532 per month. Over the life of the loan, choosing the shorter term will save you more than $100,000.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) are initially offered with lower interest rates compared to fixed-rate loans. They can be a savvy choice for those who foresee a move before the rate adjusts. If you’re in a 30-year fixed-rate mortgage but have your sights set on a new home in a few years, an ARM could be your ticket to lower monthly payments. However, be sure to keep an eye on the potential for rate increases and how they might impact your budget.
Cash-Out Refi
Homeowners often look to their home equity to finance a variety of projects, such as home improvements or debt consolidation. Here’s how a cash-out refinance works: If you have a home valued at $500,000 and a mortgage balance of $300,000, you have $200,000 in equity. With some lenders allowing you to borrow up to 80% of that equity, you could potentially refinance and take out a new loan for up to $400,000 — enough to pay off your original mortgage and still have $100,000 left over.
FHA Refi
FHA refinances, insured by the Federal Housing Administration, often come with lower interest rates, making them an attractive option for homeowners. If you already have an FHA loan, you can opt for an FHA Simple Refinance or an FHA Streamline Refinance, which simplifies the process. For those without an FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home renovations.
VA Refi
VA refinances, backed by the Department of Veterans Affairs, offer some of the lowest interest rates available. To qualify for a VA refi, known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance can help you secure a lower interest rate and reduce your monthly payments, making it a valuable option for veterans.
Securing a competitive mortgage rate can save you thousands of dollars over the life of your loan. You’ll want to shop around and get prequalified with multiple lenders to compare rates and fees. When you’ve got those offers in hand, compare each loan’s annual percentage rate (APR), which includes the interest rate, fees, and any discount points.
Look closely at how lenders’ fees contribute to mortgage refinancing costs as well. And make sure you know how long it will take you to recoup your costs before seeing real savings.
Online Refinance Calculators
Online refinance calculators are your best friends when it comes to getting an idea of what your new monthly payments might look like and comparing different refinance options. They can show you the potential impact of different interest rates, loan terms, and closing costs on your overall savings. By plugging in your current mortgage details and playing with different scenarios, you’ll be better equipped to decide if refinancing is the right move for you in Georgia.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a smart financial move, offering benefits like lower interest rates, reduced monthly payments, and the potential to tap into your home’s equity. Whether you’re considering a cash-out refi, an FHA refi, a VA refi, or a 15-year mortgage refi, it’s important to weigh your financial goals and the current market conditions. By boosting your credit score, lowering your debt-to-income ratio, and shopping around for the best offers, you can land a great rate. Stay informed about Georgia refinance rates to ensure you’re capitalizing on the best refinance opportunity for you.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
Can I get a lower interest rate without refinancing?
If you have the cash available, a mortgage recast might be a good option. A mortgage recast is when you make a large payment toward your loan principal and your lender reamortizes the loan. This will lower your monthly payments and save you on interest. If you’re experiencing financial hardship, you can also request a loan modification from your lender.
Can I ask my lender to lower my rate?
It’s possible to ask your lender for a lower interest rate, especially if you have a strong credit history and a history of on-time mortgage payments. But don’t be surprised if your lender declines your request.
Can I get equity out of my house without refinancing?
Yes, you can pull equity out of your property without refinancing. You can do this by getting a home equity line of credit (HELOC) or a home equity loan. These products allow you to tap into your home’s equity without having to refinance, which can save you money.
Is there a fee to recast your mortgage?
Yes, there is a fee to recast your mortgage. But it’s much less than a refinance. The fee to recast your mortgage is usually a few hundred dollars. This is much less than the thousands of dollars you would pay in closing costs for a refinance.
How much are closing costs on a refinance?
Closing costs usually run between 2% and 5% of your loan amount, depending on the current refinance rates and the lender fees. For example, if your new loan is $300,000, your closing costs could be anywhere from $6,000 to $15,000.
SoFi Mortgages
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
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Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
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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.
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.
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.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
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Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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A 603 credit score is toward the lower end of what’s considered the “fair” range. People with that score may have a difficult time qualifying for some credit cards or loans, and getting the same interest rates and other perks that may be available to borrowers with higher scores.
Read on to learn how a 603 credit score might affect you as a borrower.
Key Points
• A 603 credit score is in the “fair” range, making it challenging to qualify for some credit cards and loans.
• Secured credit cards, retail credit cards, and personal loans are options for a 603 score.
• Low debt-to-income ratio, stable employment, and good income can positively influence creditworthiness.
• Improving a 603 score involves timely bill payments, using secured credit cards, and keeping credit utilization low.
• Exploring various loan types and lenders can lead to more favorable terms and potentially improve credit over time.
What Does a 603 Credit Score Mean?
It’s up to each lender to decide how it will assess your various credit scores. There are multiple scoring models to choose from, but lenders most often use FICO® Scores to determine a borrower’s risk.
FICO calculates your credit score based on such factors as payment history, amounts owed, length of credit history, credit mix, and new credit. Here’s a look at how FICO Scores are categorized:
• Poor: 300-579
• Fair: 580-669
• Good: 679-739
• Very Good: 740-799
• Excellent: 800-850
Some lenders might see a 603 credit score as a red flag — a sign that you may have had past credit problems or perhaps lack a credit history. As a result, they could look at you as a riskier borrower than someone with a higher score. But that doesn’t necessarily mean you won’t be eligible for a loan or credit card.
What Else Can You Get with a 603 Credit Score?
If you have other factors working for you — say, a low debt-to-income (DTI) ratio, stable employment, a good income, cash in the bank or other assets — you still may qualify for credit with a 603 credit score. Some credit cards and loans are designed for borrowers with fair or poor credit, though you may have to pay a higher interest rate or secure the loan with some type of collateral.
Can I Get a Credit Card with a 603 Credit Score?
If you’re trying to build or rebuild your credit, you may find that the best credit card offers you get are for secured credit cards vs. unsecured credit cards. And that isn’t necessarily a bad thing. Using a secured card can be a useful way to improve your credit reputation.
A secured card works a lot like a traditional credit card, except that you’ll be asked to provide a deposit that “secures” the card. (Your credit limit with a secured card is usually equal to your deposit.) The credit card company will hold onto your deposit just in case you default on your payments. You’ll get the deposit back if you close your account or if you transition to an unsecured card later on.
If you’re looking for an unsecured credit card, gas station and retail cards may be worth exploring. They often have lower credit limits and are easier to obtain. Plus, making your payments on time with this kind of card can also help you improve your credit score.
Whether you qualify for a secured or unsecured card, it’s likely your interest rate and other costs will be on the high end until you can prove or improve your creditworthiness. It can be a good idea to compare offers so you’ll know you have a good chance of getting the card before you apply.
Remember to look for cards that come with useful credit-building elements, such as free credit score monitoring and/or an app that makes tracking your spending quick and convenient. It’s also important to ensure the credit card you choose reports to all three of the major credit bureaus regularly.
Can I Get an Auto Loan with a 603 Credit Score?
The minimum credit score required to get a car loan can vary from one lender to the next. And some lenders may use an industry-specific scoring model for auto loans that can work a bit differently than a basic FICO® Score. Still, as with most types of borrowing, the higher your credit score, the more likely you are to qualify for financing — and better financing terms.
With a 603 credit score, you’ll likely have to settle for an average APR (annual percentage rate) that’s at least a few points higher than car buyers with scores in the next highest range.
Coming up with a higher down payment or getting a cosigner with a good credit score could help if you want to look less risky to lenders. It might also help you secure a loan with a better APR.
If you’re wondering if it’s smarter to buy a new or used car, there are pros and cons to financing either way. Though it may seem counterintuitive, it actually may be easier to get financing for a new car, because it can be more difficult for lenders to accurately value a used car. But a used car’s price may be easier on your budget, which could help you stay on track with your monthly payments.
“Before you start shopping for a car loan, it’s important to understand how you might look to a lender based. Reviewing your credit reports can provide you with some perspective on the loan terms you’re likely to qualify for.”
–Brian Walsh, CFP® and Head of Advice & Planning at SoFi
Can I Get a Mortgage with a 605 Credit Score?
Eligibility requirements can vary with different types of mortgages, and individual lenders also may have their own credit score criteria. Although some lenders may accept a 603 credit score, your borrowing options may be limited. Here is some basic mortgage information to consider:
• If you’re applying for a conventional mortgage, which is a loan from a private lender that isn’t backed by a government agency, you typically need a credit score of at least 620.
• Lenders generally like to see a minimum credit score of 620 for a VA loan, which is backed by the U.S. Department of Veterans Affairs. Some lenders may accept a lower score, though your application will likely undergo additional financial scrutiny.
• If you’re thinking about a government-insured FHA loan you’ll need a minimum 580 credit score to qualify for a down payment as low as 3.5%. Applicants with lower scores, down to 500, must put down at least 10%.
• There isn’t a firm credit score requirement for government-backed USDA loans. However, you are more likely to be approved if your score is in the 620 and higher range. (Borrowers without a credit history may be evaluated through other criteria.)
You may want to talk to a mortgage professional about the various types of loans available to you and which might be the right choice based on your overall financial picture. If you have stable employment, a low DTI ratio, and other positive information on your application, you may have a better chance of getting the type of loan you want. But you should be prepared to pay a higher interest rate than you would be offered if you had a higher credit score.
Can I Get a Personal Loan with a 603 Credit Score?
There are personal loans designed for borrowers with fair or poor credit, so you may be able to find a lender who would approve your application with a 603 credit score. This is especially true if the loan is in a lower amount and/or you’re willing to pay a higher interest rate.
If you’re able to put up an asset as collateral, you also may want to consider a secured personal loan. With this type of loan, the lender is taking less risk, which could make qualifying easier. And the interest rate may be lower than with an unsecured loan.
But even unsecured personal loans tend to have lower interest rates than credit cards, which can make them a better choice for larger expenses. Knowing you’ll have a fixed payment every month can also help you stay on track as you work to build your credit score.
Wondering how a personal loan might compare to other financing options? A personal loan calculator can help you determine how much your monthly payments might be.
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 example, you may be able to simplify your finances and save money.
The Takeaway
A 603 credit score may not be considered “good,” but it isn’t a bad score, either. In fact, it could be good enough to help you qualify for a limited number of credit cards and loans, though you may have to pay a higher interest rate than a borrower with a higher credit score. However, if you remain disciplined and keep paying your bills on time, you may be able to look forward to qualifying for better financing options 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.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
