By Marcy Lovitch

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.

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

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?

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.

By Kim Franke-Folstad

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.

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.

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.