What a 628 Credit Score Is and How to Improve It

A credit score is a numerical summary of an individual’s creditworthiness, used by lenders, insurers, and landlords to assess risk. FICO and VantageScore are common models that generate a three-digit number from credit report data. This score reflects how reliably a person has managed financial obligations.

Understanding Credit Score Categories

Credit scores are grouped into categories to indicate an individual’s credit standing. FICO scores, ranging from 300 to 850, categorize scores as Poor (300-579), Fair (580-669), Good (670-739), Very Good (740-799), and Exceptional (800-850). VantageScore models also use a 300-850 range, with categories like Very Poor (300-499), Poor (500-600), Fair (601-660), Good (661-780), and Excellent (781-850).

A credit score of 628 falls within the “Fair” category for both FICO and VantageScore models. This score is below the national average. A fair score suggests some positive credit behaviors, but also potential past financial missteps like late payments or high credit utilization.

Implications of a 628 Credit Score

A 628 credit score carries specific implications for accessing financial products and their terms. Individuals with a score in this range may find it challenging to qualify for the most competitive interest rates and favorable terms on loans and credit cards. Lenders view “Fair” scores with caution, indicating higher perceived risk.

For credit cards, a 628 score allows for approval, but often with less desirable terms. This can include higher interest rates and lower credit limits. While secured credit cards or cards designed for building credit are generally accessible, premium rewards cards are usually reserved for those with good to excellent credit.

When seeking larger loans, such as mortgages or auto loans, a 628 credit score can present hurdles. Conventional mortgage loans often require a minimum credit score of around 620, making a 628 score potentially eligible. However, borrowers can expect significantly higher interest rates. Similarly, for auto loans, a 628 score leads to higher interest rates. Renting an apartment might also be more difficult, as landlords increasingly check credit scores, and a lower score could lead to higher security deposits or the need for a co-signer.

Components of Your Credit Score

FICO scores are based on five primary categories of information from a credit report, each with a different weight. The most significant factor is payment history, accounting for approximately 35% of the score. This assesses whether payments have been made on time, as late payments have a substantial negative impact.

The second most influential factor is amounts owed, or credit utilization, which makes up about 30% of the score. This measures the amount of credit currently being used against the total available credit. Keeping balances low, ideally below 30% of the credit limit, is recommended to positively influence this component. The length of credit history contributes approximately 15% to the score, reflecting how long accounts have been open and their average age.

New credit, representing about 10% of the score, considers recent credit applications and newly opened accounts. Opening many new accounts in a short period can signal higher risk and temporarily lower the score. Finally, credit mix accounts for the remaining 10%, evaluating the diversity of credit accounts, such as revolving credit and installment loans.

Strategies for Credit Score Improvement

Improving a 628 credit score involves consistent effort and strategic financial management. The most impactful action is making all payments on time, as payment history holds the largest weight in credit scoring models. Setting up automatic payments can help ensure bills are paid by their due dates, preventing negative marks that can significantly lower a score.

Reducing credit utilization is another crucial step, influencing 30% of the credit score. This means lowering the amount of debt owed relative to the total available credit. Paying down existing balances, particularly on credit cards, and striving to keep utilization below 30% or even lower, can lead to score improvement.

Carefully managing new credit is important. While opening a new credit card can increase total available credit and potentially lower utilization, it also results in a hard inquiry that can temporarily lower the score. It is advisable to apply for new credit only when necessary and to avoid opening multiple new accounts in a short timeframe. Maintaining older accounts in good standing can also benefit the length of credit history component.