A credit score of 624 is considered “Fair” in the range of credit scores. With a score of 624, there is room for improvement and there are things you can do to increase your score.
Since it’s not on the “Very Poor” end of the credit card scale, there are still some benefits to having a Fair credit score that people with a poor credit score aren’t afforded.
There are several factors that contribute to your credit score. The best way to find out what exactly is affecting your credit score is by obtaining your credit report from the credit bureaus. You are entitled to one free credit report each year, from each of the three credit bureaus.
If you are looking to improve your credit score, the best way to do this is through good credit management. Keep reading to learn more about the ways you can do that.
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Why Your Credit Score Is 624
A credit score of 624 is more on the “Very Poor” side of the credit score scale. There are probably a few derogatory or negative marks, late payments, or a high credit utilization ratio on your report. If you are not in default on any of your loans or credit lines, you may be able to improve your score relatively easily.
Here are a few things that contribute to a credit score of 624.
Lots of Hard Inquiries
Hard inquiries can hurt your credit score. Hard inquiries are when you authorize someone to view your credit report to apply for a new loan, mortgage, or credit card.
Just one hard inquiry can lower your credit score by five points. When your credit score is already in the “Fair” or “Very Poor” category, this is a big deal. Hard inquiries impact your score for a full 12 months after the inquiry.
With a credit score of 624, it’s important that you don’t make too many hard inquiries, especially in a short period. Try to improve your credit score before making any more hard inquiries if you can help it.
Even one late payment can negatively affect your credit score. If you have a credit score of 624, there are likely a few late payments on your credit report. Payment history accounts for 35% of your score, so it’s incredibly important that you always make payments on time.
If you have late payments as derogatory marks on your credit report, the best thing you can do is make up those payments. You want to avoid going into default on your credit cards or other loans. Each missed payment that you make up will help you reduce your derogatory marks.
Debt Owed to Collections Agency
Another possible contributor to your credit score of 624 is any debt owed to a collections agency. If you have payments that are past due, there’s a chance that they have gone into collections.
Most creditors don’t send debts to collections if they are only 30 days past due. But if you don’t make your late payments, they will eventually end up in collections.
You must keep in contact with any collections agency trying to collect a debt from you. You can set up a payment plan with them in which you pay down your debt owed.
Once your debt is cleared, it will remain on your credit report as a settled collections claim. To remove it from your report, send a goodwill letter to the credit bureaus.
What Can You Do with a 624 Credit Score?
On the range of credit scores, a score of 624 is considered Fair. With a Fair credit score, there is a lot of room for improvement. While your score of 624 will still afford you some opportunities in taking out loans and credit cards, there are better credit options available if you were to increase your score.
By repairing your credit and increasing your score to “Good,” “Very Good,” or “Exceptional” categories of credit scores (670 or higher), you would have a lot more flexibility in applying for credit cards and other loans.
These are just a few of the best things that you can benefit from when you have a good credit score:
- Better pre-approval options.
- The most competitive rates on credit cards.
- More 0% introductory interest opportunities.
- Easier approval for mortgages.
- Higher chance of approval for apartment rentals.
If your credit score is low, it’s very important to get back on track to improve your credit report. As we’ve seen here even simple, everyday things like applying for an apartment can be extremely difficult with a score of 624. Increasing your score can help tremendously. Keep reading to learn about ways to improve your score.
How to Improve a 624 Credit Score
We’ve talked about a few remedies to any derogatory marks or poor credit management, but how can you improve your credit score?
These are the best ways to improve your credit score and keep it maintained:
- On-time payments every month.
- Paying down debts owed.
- Low credit utilization ratio.
- No hard inquiries (or very minimal hard inquiries).
With a score of 624, you may be looking at the possibility of bankruptcy, civil judgment lawsuits, or even just a lot of late payments. These are harder to remedy, and therefore make it harder to improve your score. If this is the case, you may benefit from credit repair services.
Credit repair services can help you get you back on track to a better credit score. Credit repair companies have methods to help you improve your score.
These companies are equipped with trained professionals (and often legal professionals) who will help you to work with the credit bureaus to improve your credit.
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