Is 619 a Bad Credit Score? What to Do About It

A credit score serves as a numerical representation of an individual’s creditworthiness, offering lenders a quick assessment of risk when evaluating loan or credit card applications. This three-digit number, typically ranging from 300 to 850, summarizes information found in one’s credit reports. It plays a significant role in determining access to various financial products and their associated terms.

Understanding Credit Score Ranges

Credit scores are primarily generated by two major scoring models: FICO and VantageScore. FICO scores categorize ranges as Poor (300-579), Fair (580-669), Good (670-739), Very Good (740-799), and Exceptional (800-850). For VantageScore 3.0, the ranges are Very Poor (300-499), Poor (500-600), Fair (601-660), Good (661-780), and Excellent (781-850).

A credit score of 619 falls into the “Fair” category for both FICO and VantageScore models. This is below the national average FICO score of 715 in 2023. While not considered “bad,” a 619 score indicates higher risk to lenders compared to scores in the “Good” or “Excellent” ranges.

Implications of a 619 Credit Score

A 619 credit score can present limitations when seeking financial products. Lenders often view “Fair” range scores as indicating moderate risk, leading to less favorable terms. This can result in higher interest rates on loans, increasing costs over the life of the debt.

For mortgages, a conventional loan typically requires a minimum credit score of 620. A 619 score places borrowers just below this threshold, and if approved, they may face higher interest rates. Similarly, for auto loans, approval is possible, but interest rates will likely be significantly higher than for those with better credit. For instance, a 60-month new auto loan for someone with a 590-619 FICO score might average around 15.92% APR, compared to 5.34% for a prime borrower.

Regarding credit cards, individuals with a 619 score may qualify for certain cards, but these often come with higher annual fees or lower credit limits. Secured credit cards, which require a cash deposit, might be a more accessible option. Beyond traditional lending, a 619 score can also influence rental applications, utility deposits, and insurance premiums, as providers may use credit checks to assess reliability.

Key Factors Determining Your Credit Score

Your credit score is influenced by several categories of information in your credit report.

Payment History

Payment history is the most impactful factor, accounting for approximately 35% of your FICO score and being “highly influential” for VantageScore. This category assesses whether bills have been paid on time, noting any late or missed payments, collection accounts, or bankruptcies.

Amounts Owed (Credit Utilization)

Amounts owed, also known as credit utilization, makes up about 30% of your FICO score. This factor measures the percentage of available revolving credit currently in use. Keeping this ratio below 30% is generally advised, with lower percentages indicating more responsible credit management.

Length of Credit History

The length of your credit history contributes around 15% to your FICO score. This considers how long accounts have been open, the age of your oldest account, and the average age of all accounts. A longer history of responsible credit use is generally seen as positive.

New Credit

New credit, which includes recent applications and newly opened accounts, accounts for about 10% of your FICO score. Frequent applications can lead to “hard inquiries” that temporarily lower your score.

Credit Mix

Your credit mix, representing the variety of credit types you manage (e.g., credit cards, installment loans), comprises about 10% of your FICO score. Demonstrating the ability to handle different types of credit responsibly can be beneficial.

Actionable Steps for Credit Score Enhancement

Improving a 619 credit score involves consistent financial practices.

Prioritize On-Time Payments

Prioritizing on-time payments is foundational, as payment history is the most heavily weighted factor. Setting up automatic payments or using calendar reminders can help ensure timely submission and prevent missed due dates. Even one payment missed by 30 days or more can significantly impact scores.

Reduce Credit Utilization

Reducing credit utilization is another impactful step. Pay down existing credit card balances to keep the amount of credit used well below the total available credit. Aiming for a credit utilization ratio under 30% is a widely recommended practice. This can be achieved by making more than the minimum payment or multiple small payments throughout the billing cycle.

Maintain Older Accounts

Maintaining older accounts in good standing contributes positively to the length of credit history. Keep established accounts open, even if not used frequently, as closing them can reduce the average age of accounts. Using older credit cards for small, recurring expenses with autopay can keep them active.

Manage New Credit Prudently

Managing new credit applications prudently is also important. Each application results in a hard inquiry on your credit report, which can cause a temporary dip in your score. Limit new credit applications to once every six months and only apply when truly necessary. Seeking prequalification offers can allow you to gauge approval odds without a hard inquiry.

Diversify Credit Mix Naturally

Diversifying your credit mix naturally over time, through responsible use of both revolving and installment credit, can also be beneficial. However, do not take on new debt solely to improve this factor, as its impact is less significant than payment history or credit utilization. The primary focus should remain on consistent, responsible management of existing credit.