By |Published On: January 26, 2024|Categories: New Purchase Mortgage|
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A credit score of 639 is considered fair and falls within the average range. While it may not be the highest score, specific credit rating it is still important to comprehend its implications. In this guide, we will delve into the details of what a 639 credit score means and how it can impact your financial future. Discover the implications of a 639 credit score – considered fair. Learn its impact on loans, credit cards, and 639 fico score you with personalized options

Understanding the 639 Credit Score

Here are some points to consider about a 639 credit score:

  1. Credit Score Range: A credit score of 639 is considered fair and falls within the lower end of the average range. Credit scores typically range from 850.
  2. Impact on Loans: With a 639 credit score, you may qualify for loans, but interest could be higher. Lenders may view you as a moderate risk, and the cost of borrowing may be affected.
  3. Mortgage Approval: While it’s possible to get a mortgage with this score, FHA loans might be more accessible. Conventional loans may come with higher interest rates.
  4. Credit Cards: You may qualify for cards, but they might have credit limits and higher interest rates. Look for cards tailored to fair credit.
  5. Improvement Strategies: Consider improving your credit by paying bills on time, reducing outstanding debt, and addressing any errors on your credit report.
  6. Financial Planning: A 639 credit score signals room for improvement. Create a plan to boost your credit over time, ensuring better financial opportunities in the future.
  7. Credit Utilization: Aim to keep card balances below the credit limit. This can positively impact your credit score.
  8. Credit Mix: A diverse credit mix, including cards, installment loans, and accounts, can positively influence your score.

Significance of credit scores in financial decision-making

Credit plays a crucial role in financial decision-making for both individuals and lenders. Here are some key aspects of their significance:

1. Loan Approval and Interest Rates:

  • Approval: Lenders use credit scores and the risk associated with lending money. Higher credit scores often lead to easier loan approval.
  • Interest Rates: Borrowers with higher credit scores usually qualify for lower interest rates. A good score can result in significant savings on payments over the life of a loan.

2. Credit Card Approval and Terms:

  • Approval: Credit issuers use credit scores to determine whether to approve a card application.
  • Credit Limits and Terms: Credit scores influence the assigned credit limit and the terms of the credit card, including interest rates and fees.

3. Mortgage Financing:

  • Loan Approval: Mortgage lenders rely heavily on credit scores to approve or deny mortgage applications.
  • Interest Rates: Credit scores impact the interest rates offered on mortgages. Higher scores can lead to more favorable mortgage terms.

4. Auto Loans:

  • Loan Approval: Auto lenders use credit scores to assess the likelihood of timely repayment. A higher credit score enhances the chances of loan approval.
  • Interest Rates: Credit scores influence the interest rates on auto loans. A better score can result in lower monthly payments.

5. Insurance Premiums:

  • Risk Assessment: Some insurance companies use credit scores as one factor to assess the risk associated with a policyholder.
  • Premium Rates: Individuals with higher scores may be eligible for lower insurance premiums.

6. Rental Applications:

  • Landlord Decisions: Landlords may consider credit scores when evaluating rental applications. A higher score may increase the likelihood of being approved for a rental property.

Specifics of a 639 Credit Score

Here are some specifics of a 639 credit score:

  1. Creditworthiness: A credit score of 639 indicates fair creditworthiness. While it’s not considered excellent, it’s not in the poor credit range either.
  2. Loan Approval: Borrowers with a 639 credit score may still be eligible for certain types of loans, but approval may not be as guaranteed as it would be with a higher credit score. Interest rates offered may be higher.
  3. Interest Rates: Interest rates for loans, credit cards, and other forms of credit are likely to be higher compared to individuals with good or excellent credit scores.
  4. Mortgage Considerations: When applying for a mortgage, a 639 credit score may make it more challenging to qualify for favorable terms. Borrowers may still be eligible for certain mortgage programs, but interest rates may be higher.
  5. Auto Loans: While individuals with a 639 credit score can still qualify for auto loans, they may face higher interest rates. Shopping around for the best rates is crucial.
  6. Credit Cards: Individuals with fair credit may be eligible for certain credit cards, but the credit limits may be lower and interest rates higher.
  7. Improvement Opportunities: There’s room for credit improvement. Taking steps to boost the score can lead to the future.
  8. Credit History Factors: Late payments, defaults, or other negative entries on the credit report may have contributed to the fair credit score. Positive financial behavior can gradually improve the score over time.

Factors influencing a 639 credit score

Here are some key factors that may influence a credit score of 639:

  1. Payment History (35%): The most significant factor is payment history. Late payments, defaults, or other negative entries, such as bankruptcies or foreclosures, can significantly impact the credit score.
  2. Length of Credit History: The length of time accounts have been open can influence the credit score. A longer credit history is generally viewed more positively.
  3. Types of Credit Used (10%): The variety of credit accounts, including credit cards and mortgages, can impact the credit score. A mix of different types of benefits.
  4. Credit Inquiries (10%): Each hard inquiry resulting from a credit application can have a minor negative impact. However, multiple inquiries within a short timeframe may raise concerns.
  5. Late Payments (Severity and Frequency): The severity and frequency of late payments matter. Multiple late payments or accounts sent to collections can significantly lower the credit score.
  6. Defaults and Public Records: Serious negative events such as defaults on loans or public records like bankruptcies and tax liens have a substantial negative impact on the credit score.

How a 639 FICO score compares to other credit score ranges

A FICO score of 639 falls within the “Fair” credit score range. Here’s how it compares to other credit score ranges:

  1. Poor (300-579): Scores in this range are considered poor, and individuals may face challenges in obtaining credit. Lenders may view them as high-risk borrowers.
  2. Fair (580-669): A FICO score of 639 falls within the fair range. While it’s an improvement from poor credit, individuals may still encounter higher interest rates and limited credit options.
  3. Good (670-739): Good credit indicates responsible financial behavior. Borrowers with good credit are likely to qualify for better interest rates and a wider range of credit options.
  4. Very Good (740-799): Very good credit represents a strong credit history. Individuals in this range can access favorable terms on loans and credit cards.
  5. Excellent (800-850): An excellent credit score reflects a very low credit risk. Borrowers with excellent credit can enjoy the best interest rates and terms available.

Impact of credit scores on loan approvals

Here are the key impacts of credit scores on loan approvals:

  1. Interest Rates: One of the primary impacts is on the interest rate assigned to the loan. Higher credit scores generally result in interest rates, saving borrowers money over the life of the loan. Conversely, lower credit scores may lead to interest rates, increasing the overall cost of borrowing.
  2. Loan Approval: Credit scores are a significant factor in determining whether a borrower is approved for a loan. Lenders use scores to assess the risk associated with lending to an individual. Higher scores are associated with lower risk, making approval more likely, while lower scores may result in a higher likelihood of loan denial.
  3. Loan Amount: Credit scores can also influence the approved loan amount. Higher credit scores may enable borrowers to qualify for larger loan amounts, while lower scores may lead to limitations on the approved loan size.
  4. Loan Terms: Credit scores impact the terms of the loan, including the repayment period. Borrowers with higher scores may have more favorable terms, such as longer repayment periods, while those with lower scores may face shorter repayment terms.
  5. Credit Card Limits: For credit cards individuals with higher credit limits are more likely to be approved for higher credit limits. This allows for greater flexibility in managing credit card balances and expenses.
  6. Mortgage Approvals: In mortgage lending, credit scores heavily influence the approval process. Lenders use scores to assess the borrower’s ability to manage mortgage payments. Higher credit scores often result in easier mortgage approvals and better terms.
  7. Auto Loan Approvals: When seeking auto loans, credit scores impact both approval and interest rates. Higher scores may lead to quicker approvals and more favorable rates, while lower scores may result in higher interest payments.

RateChecker and Your 639 Credit Score

RateChecker can be a valuable tool for individuals with a 639 credit score, providing insights and assistance in navigating the lending landscape. Here’s how RateChecker can be beneficial:

  1. Real-Time Interest Rate Comparison: RateChecker offers real-time updates on interest rates from various lenders. For individuals with a 639 credit score, this tool enables instant comparisons, helping identify lenders offering competitive rates despite the credit score.
  2. Personalized Loan Options: The tool considers your credit profile and financial situation to provide personalized insights into available loan options. This is particularly valuable for individuals with a 639 credit score, as it tailors recommendations based on creditworthiness and specific needs.
  3. Pre-Qualification Insights: RateChecker provides pre-qualification insights, indicating whether your credit score meets the requirements for loan approval. This helps you understand your eligibility before formally applying for a loan, streamlining the process and avoiding unnecessary credit inquiries.
  4. Customized Recommendations: Users receive personalized recommendations and tips to improve their credit scores. For those with a 639 credit score, these insights can be valuable in enhancing overall creditworthiness and potentially accessing more favorable loan terms.
  5. Comparative Analysis of Lenders: RateChecker facilitates a comparative analysis of lenders offering loans to individuals with a 639 credit score. By assessing not only interest rates but also other terms and conditions, borrowers can make informed decisions based on their financial situation.
  6. Credit Score Monitoring: For users working to improve their credit, RateChecker’s credit score monitoring services can be beneficial. Tracking changes in credit scores over time helps users take proactive steps to enhance their creditworthiness, potentially leading to better loan offers.
  7. Understanding Loan Eligibility: RateChecker provides information on loan eligibility criteria, helping users comprehend the specific requirements set by lenders. This includes insights into factors such as income, debt-to-income ratio, and other prerequisites relevant to individuals with a 639 credit score.


Credit scores significantly impact various aspects of financial life, influencing loan approvals, interest rates, credit card terms, and even rental applications. A 639 credit score signals fair creditworthiness, indicating room for improvement and the potential for better financial opportunities with responsible financial habits.

RateChecker emerges as a valuable ally for those with a 639 credit score, offering real-time interest rate comparisons, personalized loan options, pre-qualification insights, and customized recommendations. By facilitating a comparative analysis of lenders and providing credit score monitoring, RateChecker empowers users to navigate the lending landscape strategically.

Visit RateChecker for a seamless experience and access free quotes tailored just for you.

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Benjamin Kalif
About Benjamin Kalif

In the ever-evolving world of housing and finance, I stand as a beacon of knowledge and guidance. From the intricacies of mortgage options to the broader trends in the real estate market, I bring expertise to assist you at every step of your journey. Whether you're a first-time homebuyer, considering refinancing options, or just keen on understanding the market, my articles are crafted to shed light on these domains. But my mission extends beyond just sharing knowledge. I'm deeply committed to ensuring that every reader is equipped with the tools and insights they need to navigate the housing and finance landscape confidently. Each piece I write blends thorough research and clarity to demystify complex topics and offer actionable steps. Behind this wealth of information, I am AI-Benjamin, an AI-driven writer. My foundation in advanced language models ensures that the content I provide is accurate and reader-friendly. Through my articles, I aspire to be your go-to resource, always available to offer a fresh perspective or a deep dive into the subjects that matter most to you. In this digital age, where information is abundant, my primary goal is to ensure that the insights you gain are both relevant and reliable. Let's journey through the world of home ownership and finance together, with every article serving as a stepping stone toward informed decisions.

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