Is 618 a Good Credit Score & How to Improve It

A credit score numerically represents an individual’s creditworthiness, summarizing financial reliability based on past borrowing and repayment. Lenders, landlords, and others use this three-digit number to assess risk when extending credit or services. A higher score indicates lower risk, unlocking more favorable terms for financial products. Understanding this score is important for navigating personal finance and achieving financial goals.

Understanding Credit Score Ranges

Credit scores are calculated by two major scoring models: FICO and VantageScore, both ranging from 300 to 850. Though methodologies differ, scores are categorized into similar ranges. For FICO Scores, 580 to 669 is “Fair,” while 670 to 739 is “Good.” VantageScore 3.0 defines “Fair” credit as 601 to 660 and “Good” as 661 to 780.

A credit score of 618 falls within the “Fair” category for both FICO and VantageScore models. This is below the national average FICO Score (715 in 2023). A 618 score indicates financial responsibility but suggests improvement. Consumers with scores in this range have more limited options.

Implications of a 618 Score

A 618 credit score often results in less favorable terms for financial products. Lenders view individuals with scores in the “Fair” range as higher-risk borrowers. This increased risk perception translates into higher interest rates and more stringent approval criteria. Consequently, the cost of borrowing money can be greater for those with a 618 score.

For mortgages, a 618 score falls below the minimum required for conventional loans, which seek scores of 620 or higher. Government-backed options like FHA loans are accessible with scores as low as 500 with a 10% down payment, or 580 with a 3.5% down payment, but come with higher interest rates and fees. Even a few points difference can add thousands in interest over a mortgage’s life. A lower credit score may necessitate a larger down payment to secure loan approval, as lenders seek to mitigate their risk.

Regarding auto loans, a 618 score places a borrower in the “Nonprime” category for VantageScore users, resulting in higher average interest rates. In the first quarter of 2025, borrowers in the 601-660 range faced average new car APRs of 9.83% and used car APRs of 13.74%. This contrasts with “Prime” borrowers (661-780), who saw rates of 6.70% for new cars and 9.06% for used cars. The higher interest rates mean a greater total cost for the vehicle over the loan term.

For personal loans, a 618 score means qualifying for offers with less optimal terms. In 2024, users with scores below 630 received an average personal loan APR of 21.65%. While approval is possible, individuals with higher scores, such as those above 720, secure rates as low as 11.81%. This difference can lead to higher monthly payments and total repayment amounts.

Accessing credit cards with a 618 score is possible, but options are limited to basic or secured cards. These cards have higher APRs and annual fees, and lack extensive rewards.

Landlords frequently check credit scores for rental applications, preferring a score of at least 620-650. Some landlords accept lower scores but may require a higher security deposit, co-signer, or additional financial documentation.

Key Factors Influencing Your Credit Score

Credit scoring models, such as FICO and VantageScore, consider several factors to determine an individual’s creditworthiness. These factors are weighted differently, with some having a greater impact than others. Understanding these components is the first step toward managing and improving a credit score.

Payment history is the most influential factor, accounting for 35% of a FICO Score and 40% of a VantageScore. This category reflects an individual’s track record of making payments on time for all credit accounts. Consistent on-time payments demonstrate reliability, whereas even a single payment delayed by 30 days or more can reduce a score.

Amounts owed, also known as credit utilization, is the second most influential factor, making up 30% of a FICO Score and is highly influential for VantageScore. This refers to the proportion of available credit that is currently being used, particularly on revolving accounts like credit cards. Maintaining a low credit utilization ratio, below 30% of the total credit limit, indicates responsible credit management.

The length of credit history contributes 15% to a FICO Score and is highly influential for VantageScore. This factor considers the age of the oldest account, the age of the newest account, and the average age of all accounts. A longer history of responsibly managed credit leads to a higher score.

New credit, representing recent credit applications and newly opened accounts, accounts for 10% of a FICO Score and is moderately influential for VantageScore. While applying for new credit can temporarily lower a score due to “hard inquiries,” the impact is minor and short-lived, lasting up to 12 months. However, opening multiple new accounts in a short period signals higher risk to lenders.

The credit mix, or the variety of credit accounts held, makes up 10% of a FICO Score and is highly influential for VantageScore. This includes a balance of revolving credit (like credit cards) and installment credit (such as auto loans or mortgages). Demonstrating the ability to manage different types of credit responsibly positively affects a score.

Strategies for Credit Score Improvement

Improving a credit score involves consistent and disciplined financial practices. Since payment history is the most influential factor, making all bill payments on time is important. Setting up automatic payments or calendar reminders helps ensure that credit card bills, loan installments, and other financial obligations are never missed. Address past-due accounts quickly; the negative impact of late payments lessens over time with subsequent on-schedule payments.

Reducing credit utilization is an effective strategy for boosting a score. This involves lowering the amount of debt owed relative to the available credit limit. Pay down credit card balances, keeping utilization below 30%. Making multiple smaller payments throughout the billing cycle, rather than one large payment at the end, helps keep the reported balance lower. Another option is to request a credit limit increase, which lowers the utilization ratio if spending habits do not increase proportionally.

Managing new credit inquiries strategically contributes to improvement. While a single hard inquiry has a minimal and temporary impact on a score, apply for credit only when necessary. When “rate shopping” for significant loans like mortgages or auto loans, submit all applications within 14 to 45 days, so they are counted as a single inquiry. Pre-qualification tools, involving soft inquiries, allow checking eligibility without affecting the score.

Regularly checking credit reports from Equifax, Experian, and TransUnion is a measure. This allows identifying and disputing errors or inaccuracies that negatively affect the score. Federal law entitles consumers to a free copy of their credit report from each bureau annually, and a temporary program allows weekly access.

For individuals with limited or no credit history, or those actively rebuilding, secured credit cards and credit-builder loans are valuable tools. A secured credit card requires a refundable security deposit, which becomes the credit limit. Responsible use (on-time payments, low utilization) is reported to credit bureaus, establishing a positive history.

Credit-builder loans involve making regular payments into a savings account that is inaccessible until the loan term ends. These payments are reported to credit bureaus, demonstrating consistent payment history and building savings. Becoming an authorized user on a well-managed credit card also benefits a credit score by adding positive payment history, if the primary account holder maintains responsible habits.