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Is 628 a Good Credit Score? Here’s the Straight Dope

Nope. Plain and simple, a credit score of 628 is not considered a good credit score. It hovers in the “fair” credit score range, which means you’re teetering on the edge of being considered a risky borrower.

Understanding the Credit Score Landscape

Before we dive deeper, let’s level-set on what a credit score actually is. Credit scores are numerical representations of your creditworthiness, based on your credit history. They’re calculated by credit bureaus like Equifax, Experian, and TransUnion using complex algorithms. The most widely used scoring model is FICO, and its score range runs from 300 to 850.

Here’s a general breakdown of FICO score ranges:

Exceptional: 800-850
Very Good: 740-799
Good: 670-739
Fair: 580-669
Poor: 300-579

As you can see, 628 falls squarely within the “fair” range. While it’s not terrible, it’s definitely not optimal.

Why a “Fair” Credit Score Matters

A “fair” credit score can significantly impact your financial life. It affects:

Interest Rates: Expect higher interest rates on loans (auto, personal, mortgage) and credit cards. This translates to paying significantly more over the life of the loan.
Loan Approval: You might face difficulty getting approved for loans, especially larger ones like mortgages. Lenders view you as a higher risk.
Credit Card Approval: Similar to loans, you might be denied for premium credit cards with better rewards and lower interest rates.
Insurance Premiums: Some insurance companies use credit scores to determine premiums. A lower score could mean higher insurance costs.
Rental Applications: Landlords often check credit scores. A “fair” score could make it harder to rent an apartment or home.
Employment: Some employers, especially in finance or security, check credit reports. A poor credit history could impact your job prospects.

Factors Influencing Your 628 Credit Score

Understanding why your score is 628 is crucial for improvement. Common factors that contribute to a “fair” score include:

Payment History: This is the most important factor. Missed payments, even small ones, significantly hurt your score.
Amounts Owed: High credit card balances relative to your credit limits (credit utilization) drag down your score.
Length of Credit History: A longer credit history generally leads to a better score. If you’re new to credit, your score might be lower.
Credit Mix: Having a mix of different credit accounts (credit cards, loans) can be beneficial, but it’s not as crucial as payment history and amounts owed.
New Credit: Opening too many new credit accounts in a short period can lower your score.

Steps to Improve Your Credit Score

The good news is that a 628 credit score can be improved! Here’s a strategic approach:

Pay Bills On Time, Every Time: Set up automatic payments or reminders to ensure you never miss a due date.
Reduce Credit Card Balances: Aim to keep your credit utilization below 30% of your credit limit on each card. Ideally, strive for under 10%.
Dispute Errors on Your Credit Report: Regularly review your credit reports from all three bureaus (Equifax, Experian, TransUnion) for inaccuracies. Dispute any errors you find. You can get a free copy of your credit report weekly from AnnualCreditReport.com.
Avoid Opening Too Many New Accounts: Each new account generates a hard inquiry on your credit report, which can slightly lower your score.
Become an Authorized User: Ask a trusted friend or family member with excellent credit to add you as an authorized user on their credit card. This can boost your score, but only if they have responsible spending habits.
Consider a Secured Credit Card: If you have trouble getting approved for a traditional credit card, a secured card can help you build credit. You’ll need to provide a security deposit, which typically becomes your credit limit.
Patience is Key: Building good credit takes time and consistent effort. Don’t expect overnight results.

FAQs About a 628 Credit Score

Here are 12 frequently asked questions to provide further clarity:

1. How long will it take to improve my credit score from 628?

The timeframe varies depending on the factors impacting your score and how diligently you follow the improvement strategies. You could see noticeable improvements in a few months if you focus on payment history and credit utilization. More significant improvements may take 6-12 months or longer.

2. Will checking my own credit report hurt my credit score?

No. Checking your own credit report is considered a “soft inquiry”, which does not affect your credit score. Only “hard inquiries,” which occur when you apply for credit, can potentially lower your score slightly.

3. Is a credit score of 628 good enough to buy a house?

While possible, it will be challenging. You’ll likely face higher interest rates and may need a larger down payment. You might qualify for an FHA loan with a lower down payment, but these loans often come with mortgage insurance premiums. It’s generally recommended to improve your score to at least 670 before pursuing a mortgage.

4. Can I get a car loan with a 628 credit score?

Yes, but be prepared for higher interest rates. Shop around for the best rates and consider making a larger down payment to reduce your monthly payments.

5. What is a “good” credit utilization ratio?

Aim for a credit utilization ratio below 30% on each credit card. For example, if your credit limit is $1,000, keep your balance below $300. Ideally, strive for under 10%.

6. What is the difference between a FICO score and a VantageScore?

Both are credit scoring models, but they use different algorithms and may weigh factors differently. FICO is more widely used by lenders, but VantageScore is also becoming increasingly popular. Understanding both can give you a more comprehensive picture of your creditworthiness.

7. How do I dispute errors on my credit report?

Contact the credit bureau (Equifax, Experian, TransUnion) directly, in writing, with specific details about the error and supporting documentation. They are legally obligated to investigate and correct any inaccuracies.

8. What are the benefits of having a good credit score?

Lower interest rates, easier loan and credit card approval, better insurance premiums, easier rental applications, and potential employment opportunities.

9. Should I close old credit card accounts?

It depends. Closing older accounts can reduce your overall credit limit, potentially increasing your credit utilization ratio. If you have a card with an annual fee that you no longer use, closing it might be worth it, but weigh the potential impact on your credit utilization.

10. What is a secured credit card and how does it work?

A secured credit card requires a security deposit, which typically becomes your credit limit. It’s a good option for individuals with limited or poor credit to build or rebuild their credit history. You use the card like a regular credit card and make on-time payments to build a positive credit history.

11. Does my income affect my credit score?

No. Your income is not directly factored into your credit score calculation. However, lenders will consider your income when evaluating your ability to repay a loan or credit card debt.

12. How often should I check my credit report?

You should check your credit report at least once a year, and ideally every few months. You can obtain free weekly credit reports from AnnualCreditReport.com. Monitoring your reports regularly helps you identify and correct errors promptly.

The Bottom Line

A 628 credit score is a wake-up call. It signals that you need to take proactive steps to improve your creditworthiness. While it’s not a disaster, it does limit your financial options and potentially costs you money in higher interest rates. By understanding the factors that impact your score and implementing the strategies outlined above, you can steadily improve your credit and unlock better financial opportunities. Remember, building good credit is a marathon, not a sprint. Stay consistent, stay informed, and watch your score climb!