What Is a 612 Credit Score and Is It Good or Bad?

A credit score is a numerical summary of an individual’s creditworthiness, typically ranging from 300 to 850. Lenders use this three-digit number, derived from credit reports, to assess risk and determine the likelihood of repayment. A higher score generally indicates lower risk, leading to more favorable lending terms and broader access to financial products.

Understanding a 612 Credit Score

A 612 credit score falls into the “Fair” category for most credit scoring models, including FICO and VantageScore. For FICO, the “Fair” range spans from 580 to 669. A 612 score indicates a higher risk to lenders compared to those with higher scores, suggesting past credit difficulties or a limited credit history. This score signals that improvement is generally needed.

Factors Influencing Your Credit Score

Several components contribute to a credit score, each weighted differently.

Payment history: This holds the most weight, accounting for approximately 35% of a FICO Score. Consistently making payments on time demonstrates reliability, while late or missed payments significantly reduce a score.
Amount owed (credit utilization): This makes up about 30% of a FICO Score. This ratio compares total credit used to total available credit. Keeping balances low, ideally below 30% utilization, is beneficial.
Length of credit history: This contributes approximately 15% to a FICO Score. This factor considers the age of accounts. A longer history of responsible credit use reflects positively on a score.
New credit: This accounts for about 10% of the score. Recent applications and newly opened accounts are included. Each new credit inquiry can cause a small, temporary dip in the score.
Credit mix: This makes up the remaining 10% of a FICO Score. It includes revolving credit, like credit cards, and installment loans, such as mortgages or auto loans. Demonstrating the ability to manage various credit types responsibly is advantageous.

Real-World Impact of a 612 Score

A 612 credit score can have practical consequences, influencing access to credit and the terms offered.

Loan approvals: Individuals with a 612 score may face challenges securing conventional mortgages, which often require a minimum score of 620. Federal Housing Administration (FHA) loans may be accessible with scores as low as 580, but they often come with mandatory mortgage insurance premiums. Auto and personal loans are often available, but at higher interest rates.
Higher interest rates: Lower credit scores result in higher interest rates, as lenders perceive greater risk. This means approved loans will likely cost significantly more over their lifespan. Even a small percentage point increase can translate to thousands of dollars in additional payments.
Credit card access: Access to credit cards is limited. Applicants are often restricted to secured credit cards or cards with higher fees and lower credit limits, rather than prime unsecured options.
Renting and services: Landlords frequently check credit scores. A 612 score might lead to requests for larger security deposits or even denial of the rental application. Credit scores can also influence insurance premiums and utility security deposits.

Steps to Improve Your Credit Score

Improving a 612 credit score requires consistent financial habits.

Pay bills on time: This is the most impactful step, as payment history is the most significant component of a credit score. Setting up automatic payments or reminders helps ensure timely payments and avoid delinquencies. Missing a payment by even 30 days can negatively affect a score and remain on the credit report for up to seven years.
Reduce credit utilization: Pay down credit card balances and keep them well below credit limits. Aim to keep total balances below 30% of your total available credit, with 10% often recommended for optimal scoring. Lower utilization can improve the score quickly.
Review credit reports: Regularly review reports to identify and dispute errors. Consumers are entitled to a free copy weekly from Equifax, Experian, and TransUnion through AnnualCreditReport.com. Disputing incorrect information helps remove negative marks.
Manage new credit: Avoid opening too many new credit accounts in a short period. Each new application results in a hard inquiry, which can temporarily lower the score. The impact typically fades after 12 months.
Consider secured cards or credit-builder loans: These are beneficial for limited credit history or rebuilding. Secured credit cards require a cash deposit, which often becomes the credit limit. Credit-builder loans involve regular payments into a savings account, with funds released at the end of the term. Both options establish positive payment history.