What Is a 606 Credit Score & How Can You Improve It?

A credit score is a numerical representation of an individual’s creditworthiness, providing lenders with a quick assessment of risk. This three-digit number, typically ranging from 300 to 850, summarizes your financial behavior and ability to manage debt, influencing financial decisions like loan approvals and interest rates.

Understanding Credit Score Ranges

Credit scores generally fall into categories signifying different levels of credit risk, though specific ranges vary between models like FICO and VantageScore. For example, FICO classifies “Fair” as 580-669, while VantageScore 3.0 defines it as 601-660. A 606 credit score falls within the “Fair” or “Near Prime” category for both, meaning it’s above “Poor” but below “Good” or “Excellent” credit. This score indicates some capacity for managing credit but also suggests areas for improvement.

Key Factors Contributing to a 606 Score

Several elements combine to form a credit score, each carrying a different weight in its calculation. Payment history, which reflects whether bills are paid on time, is the most significant factor, typically accounting for 35% of a FICO score. A 606 score often indicates instances of late or missed payments, which can remain on a credit report for up to seven years. Even a single payment reported 30 days past due can negatively impact your score, with the severity increasing for longer delays.

Credit utilization, or the amount of available credit being used, is the second most influential factor, making up about 30% of a FICO score. Maintaining high balances, especially above 30% of your total credit limit, signals increased risk to lenders and can lower a score. A 606 score might reflect an individual consistently using a large portion of their credit limits.

The length of credit history, representing how long accounts have been open and active, contributes approximately 15% to a FICO score. A shorter credit history or a low average age of accounts can lead to a lower score, as it provides less data for lenders to assess long-term financial behavior. The credit mix, or the variety of credit accounts like credit cards and loans, accounts for about 10% of the score. While a diverse mix can be beneficial, having too many of one type or a lack of variety might contribute to a 606 score.

New credit inquiries and recently opened accounts make up the remaining 10% of a FICO score. Applying for multiple new credit lines in a short period can cause a temporary dip in a score due to hard inquiries, which remain on a report for two years. While individual inquiries have a minor effect, a pattern of frequent applications can suggest financial distress and contribute to a lower score like 606.

What a 606 Score Means for Borrowing

A 606 credit score, falling into the “Fair” or “Near Prime” category, presents specific challenges and opportunities when seeking various types of credit. While obtaining approval for loans and credit cards is often possible, the terms offered are typically less favorable compared to those with higher scores. Lenders perceive individuals with a 606 score as having a higher credit risk, leading to higher interest rates and potentially lower borrowing limits.

For instance, auto loan borrowers with a 606 score (“Nonprime” or “Near prime”) face significantly higher interest rates. In Q1 2025, new car buyers with “Nonprime” credit (601-660) averaged 9.83%, compared to 5.18% for “Superprime” (781-850). Used car rates for a 606 score were around 13.74%, versus 6.82% for “Superprime” borrowers. These elevated rates translate to substantially higher overall costs.

Accessing personal loans or mortgages with a 606 score also involves less advantageous conditions. Lenders may offer smaller loan amounts, require larger down payments, or impose stricter repayment schedules to mitigate their risk. Credit card approvals might be limited to secured cards, which require a cash deposit, or cards with high annual fees and interest rates. These less favorable terms mean that borrowing money with a 606 score is more expensive and can limit financial flexibility.

Steps to Improve Your Credit Score

Improving a 606 credit score involves consistent effort and strategic financial management, primarily by addressing the factors that influence your score. A primary step is to ensure all payments are made on time, every time. Payment history is the most significant component of a credit score, and even one late payment can negatively impact it for several years. Setting up automatic payments for bills can help ensure timely remittances.

Reducing your credit utilization is another impactful action. This involves lowering the amount of revolving credit used relative to your available credit limits. Financial experts recommend keeping credit utilization below 30% to demonstrate responsible credit management. This can be achieved by paying down existing credit card balances or, if financially prudent, by requesting a credit limit increase on existing accounts without increasing spending.

Regularly reviewing your credit reports for errors is also important. Incorrect information, such as accounts that are not yours or inaccurately reported late payments, can negatively affect your score. The law allows you to obtain a free copy of your credit report from each of the three major credit bureaus annually, and disputing inaccuracies can help improve your score.

Careful consideration of new credit applications is advisable. Each time you apply for new credit, a hard inquiry is placed on your credit report, which can temporarily lower your score. While a single inquiry has a minor effect, multiple inquiries in a short period can signal higher risk to lenders. Maintaining older credit accounts, even if they have a zero balance, can also benefit your score by contributing to a longer average length of credit history.