Is 620 a Good Credit Score? Here’s the Truth

A credit score of 620 sits right on the edge of what many lenders consider "fair" and "subprime." In today’s economy—where inflation, rising interest rates, and housing shortages dominate headlines—understanding where a 620 score stands can make or break your financial opportunities.

What Does a 620 Credit Score Mean?

Credit scores range from 300 to 850, and they’re typically categorized as follows:
- Poor (300–579): High-risk borrowers
- Fair (580–669): Subprime but manageable
- Good (670–739): Eligible for most loans
- Very Good (740–799): Low-risk borrowers
- Exceptional (800–850): Best terms and rates

A 620 score falls into the "fair" category, which means you’re not in the danger zone, but you’re also not getting VIP treatment from lenders.

How Lenders View a 620 Score

Banks, credit card companies, and mortgage lenders see a 620 score as a yellow flag. You might qualify for loans, but expect:
- Higher interest rates
- Stricter terms
- Larger down payments
- Potential rejections from premium lenders

Can You Get a Mortgage With a 620 Credit Score?

In the current housing market, where mortgage rates hover near 7%, a 620 score might still get you a home—but with caveats.

FHA Loans: A Lifeline for Borrowers

The Federal Housing Administration (FHA) backs loans for borrowers with scores as low as 580 (or even 500 with a 10% down payment). At 620, you’d likely qualify for an FHA loan with:
- A 3.5% down payment
- Mortgage insurance premiums (MIP)
- Competitive (but not stellar) rates

Conventional Loans: Tough but Possible

For conventional loans (backed by Fannie Mae or Freddie Mac), 620 is the bare minimum. You’d face:
- Higher rates than borrowers with 700+ scores
- Private mortgage insurance (PMI) if your down payment is under 20%
- Scrutiny over debt-to-income (DTI) ratios

Credit Cards and Personal Loans at 620

Credit Cards: Limited Options

With a 620 score, you won’t qualify for premium travel cards or 0% APR offers. Instead, look for:
- Secured credit cards (require a cash deposit)
- Store cards (higher interest but easier approval)
- Subprime cards (high fees, low limits)

Personal Loans: Proceed With Caution

You might get approved, but expect:
- APRs as high as 36% (especially from online lenders)
- Loan amounts capped at $10,000 or less
- Short repayment terms (12–36 months)

How to Improve a 620 Credit Score

Fix Errors on Your Credit Report

A 2023 FTC study found that 1 in 5 Americans had errors on their credit reports. Disputing inaccuracies could boost your score overnight.

Pay Down High Credit Card Balances

Credit utilization (how much of your limit you use) impacts 30% of your score. Aim for under 30%, but below 10% is ideal.

Avoid New Credit Applications

Each hard inquiry dings your score by 5–10 points. Space out applications by 6+ months if possible.

Become an Authorized User

If a family member adds you to their old, high-limit card, their positive history could help your score.

The Bigger Picture: Credit Scores in a Volatile Economy

With inflation squeezing budgets and layoffs making headlines, maintaining good credit is harder than ever. A 620 score isn’t disastrous, but it leaves you vulnerable to:
- Sky-high auto loan rates (subprime borrowers pay 10%+)
- Rental rejections (landlords often require 650+)
- Job hurdles (some employers check credit for sensitive roles)

The Silver Lining

Rebuilding from 620 is 100% possible. With disciplined habits, you could reach 700+ within a year—unlocking better rates, lower stress, and more financial freedom.

So, is 620 a good credit score? Not quite. But it’s a starting point, not a life sentence.