What can i do with a 640 credit score?

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A credit score of 640 is considered fair, but it may limit your financial options compared to those with higher scores. However, there are still several things you can do with a 640 credit score to improve your financial situation and access certain opportunities. In this article, we will explore some of the options available to individuals with a credit score of 640.

Improving Your Credit Score

Payment History: One of the most important factors affecting your credit score is your payment history. Make sure to pay your bills on time and in full to demonstrate responsible financial behavior. Consistently making timely payments can help improve your credit score over time.

Credit Utilization: Another crucial aspect of your credit score is your credit utilization ratio, which is the amount of credit you use compared to your total available credit. Keeping your credit utilization below 30% can positively impact your credit score. Consider paying down your existing debts to lower your credit utilization ratio.

Building Credit: If you have a limited credit history, you can start building credit by opening a secured credit card or becoming an authorized user on someone else’s credit card. These options can help you establish a positive credit history and improve your credit score.

Accessing Loans and Credit Cards

While a credit score of 640 may limit your options, there are still opportunities to access loans and credit cards.

Personal Loans: Some lenders offer personal loans to individuals with fair credit scores. However, you may face higher interest rates compared to those with excellent credit scores. Shop around for lenders who specialize in working with borrowers with fair credit.

Secured Credit Cards: Secured credit cards require a security deposit, which serves as collateral for the credit limit. These cards can be a good option for rebuilding credit. Make sure to choose a secured credit card that reports to the credit bureaus to ensure your responsible credit usage is reflected in your credit history.

Improving Mortgage Options

While a 640 credit score may not qualify you for the best mortgage rates, there are still ways to improve your options.

FHA Loans: The Federal Housing Administration (FHA) offers loans to individuals with lower credit scores. FHA loans often have more lenient credit requirements and lower down payment options, making homeownership more accessible.

Improving Credit Score: If you are planning to buy a house in the future, focus on improving your credit score. By consistently practicing good credit habits, you can raise your score and potentially qualify for better mortgage rates.

Employment and Rental Opportunities

While a credit score is not the sole determining factor for employment or rental decisions, it can still play a role.

Employment: Some employers may conduct credit checks as part of their hiring process, particularly for positions that involve financial responsibilities. However, many employers prioritize other factors such as work experience and qualifications. Focus on building a strong resume and showcasing your skills to increase your chances of employment.

Rentals: Landlords often consider credit scores when evaluating rental applications. A score of 640 may not disqualify you from renting, but it’s essential to demonstrate other positive aspects of your financial situation, such as stable income and a good rental history.


While a credit score of 640 may limit your financial options, there are still several things you can do to improve your situation. By focusing on improving your credit score, exploring alternative loan options, and showcasing other positive aspects of your financial profile, you can work towards achieving your financial goals.


– Experian: www.experian.com
– Equifax: www.equifax.com
– Federal Housing Administration: www.fha.com