632 credit score: A guide to credit scores
Quick insights
- A 632 credit score is considered fair or near prime, depending on the credit scoring model.
- This score may reflect some credit history issues such as late payments or high credit utilization.
- It’s possible to improve your score over time by practicing good credit habits like making on-time payments and reducing credit utilization.
Credit scores are three-digit numbers that lenders consider when evaluating loan and credit card applications. Generally, lenders may view higher credit scores as a positive factor, while lower scores may be viewed less favorably. Approval rates and terms can vary based on a variety of factors, including credit scores.
If you have a 632 credit score, you may wonder what it means for your approval odds for credit applications and how you can improve it. In this guide, we’ll try to cover these topics and more.
Understanding a 632 credit score
Credit scores are calculated based on information in your credit reports, including your:
- Payment history
- Credit utilization (the percentage of your available credit that you are currently using)
- Length of credit history
- Credit mix (the variety of credit accounts you have)
- New credit inquiries
A 632 credit score suggests that you may have experienced some credit issues in the past like late payments or high credit utilization. The good news is that it’s possible to improve your score, and understanding what affects credit scores is a positive step toward making more informed financial decisions.
Is a 632 credit score good?
Credit score models don’t officially label scores as “good” or “bad.” Each model has its own classifications and criteria for credit score ranges, and a 632 score is considered near prime or fair, depending on the model.
For context, VantageScore's scoring ranges for VantageScore 3.0 are:
- Superprime: 781 to 850
- Prime: 661 to 780
- Near prime: 601 to 660
- Subprime: 300 to 600
And FICO's credit score ranges for FICO Score 8 are:
- Exceptional: 800 to 850
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 300 to 579
Having a fair credit score could impact your ability to secure credit or other financial products at competitive interest rates, though lenders consider several factors when evaluating credit applications.
While it's possible to get credit with a 632 credit score, the terms may not be as attractive as those offered to individuals with higher credit scores. With consistent habits, you can work toward better rates and products.
Approval odds with a 632 credit score
Approval odds for credit products with a 632 credit score vary by lender and product. Generally, lenders view individuals with fair credit scores as moderate risk. You may be approved for credit, but may not qualify for better interest rates or terms.
You may want to consider credit products designed for individuals with fair credit, such as secured credit cards or personal loans from alternative lenders. These may have more lenient approval requirements but could come with higher fees or interest rates.
Lenders often list eligibility criteria or offer pre-approval tools on their websites, which may be helpful as you evaluate your options. You may want to shop around and compare offers from different lenders to find the best option for your situation.
Improving a 632 credit score
Fortunately, a 632 score is not set in stone, and it’s possible to improve your credit score with consistent, responsible financial habits. Some strategies to help raise your score include:
- Improve payment history: Pay bills on time to avoid negative impacts on your score.
- Lower credit utilization: Keep credit utilization ratios below 30%. For example, if you have a total credit limit of $1,000, aim to keep the balance below $300.
- Diversify your credit mix: Having a variety of credit types—such as credit cards, loans, a mortgage—could help improve your score.
- Limit new credit inquiries: Avoid unnecessary hard credit checks to minimize negative effects.
- Keep older accounts open: Maintaining older accounts helps your average account age, which could benefit your score. In general, the longer you’ve had accounts open, the better.
To help improve a 632 credit score, you can also monitor your credit reports and dispute any errors or inaccuracies. Chase Credit Journey® is a free online tool that shows you why your credit score changed and by how many points.
By following these strategies and maintaining good credit habits, it’s possible to improve your score over time and increase your chances of accessing better financial opportunities.
In summary
A 632 credit score is considered fair or near prime. By understanding the factors that affect your credit score and taking steps to address any negative marks, you can work toward a better credit profile.
Whether you're looking to qualify for specific credit products or simply want to improve your financial health, taking control of your credit score is a positive step forward.
