A 620 credit score is low enough to close doors, but not so low that nothing is available to you

A 620 credit score sits in the "poor" or "fair" range depending on which scoring model lenders use. Most lenders consider scores below 620 risky, which means you will face higher interest rates, larger down payments, or outright rejection on mortgages, car loans, and personal loans. Landlords often use credit checks too, and many will deny you or demand a larger security deposit at 620. Credit card offers at this score typically come with high interest rates and low limits.

The score itself is not permanent. It moves based on your payment history (35%), how much of your available credit you use (30%), how long you have held accounts (15%), the mix of credit types you have (10%), and recent hard inquiries (10%). Improving even one of these areas can raise your score within months.

Key Takeaways

  • Most traditional lenders (banks, mortgage companies) will reject you or charge significantly higher rates at 620, though some credit unions and online lenders will work with you.
  • Landlords often deny tenants at 620 or require a co-signer, larger deposit, or proof of income; some will accept you if you pay a higher security deposit upfront.
  • Credit cards at 620 exist but carry interest rates of 20% or higher and credit limits under $1,000, making them expensive to use.
  • Paying bills on time for the next 6 to 12 months and lowering the percentage of credit you use can raise your score by 50 to 100 points.

What 620 means for mortgage and home loans

Most mortgage lenders require a score of at least 640 to 660, and many prefer 680 or higher. At 620, you will be rejected by conventional lenders (Fannie Mae, Freddie Mac) and most banks. FHA loans, which are backed by the federal government and designed for lower-credit borrowers, sometimes accept scores as low as 580, but 620 puts you in a stronger position for approval. Even with FHA, you will pay a higher interest rate than someone with a 740 score — the difference can be 0.5% to 1% per year, which costs tens of thousands over a 30-year loan.

If you are set on buying soon, raising your score to 640 or above should be your priority. Paying down existing debt and making all payments on time for 6 months can often get you there. If you cannot wait, some lenders specialise in "bad credit" mortgages, but their rates are steep and their terms are often shorter (15 years instead of 30).

What 620 means for car loans

Car loans are easier to obtain at 620 than mortgages because the car itself serves as collateral — if you stop paying, the lender takes the car back. Most credit unions and online lenders will work with you at 620, though interest rates will be high. A typical rate for a 620 score is 12% to 18% APR, compared to 4% to 6% for someone with a 740 score. On a $20,000 car loan over five years, that difference means paying $3,000 to $5,000 more in interest.

Buying a used car instead of new, putting down a larger down payment (10% to 20% instead of 0% to 5%), and shopping with credit unions rather than dealerships can lower your rate. Some dealerships will finance you at 620, but they often mark up the interest rate and sell the loan to a third party, so you end up paying more.

What 620 means for renting an apartment

Landlords use credit checks to predict whether you will pay rent on time. At 620, many will deny you outright or require conditions. Common responses are: asking for a co-signer (usually a parent or spouse with a higher score), demanding a larger security deposit (double or triple the normal amount), requiring proof of income (usually 3 times the monthly rent), or simply rejecting you and moving to the next applicant.

Some landlords do not check credit at all, especially in tight rental markets or for smaller properties. If you are denied, ask the landlord what would change their mind — sometimes a larger deposit or a co-signer is enough. If you have a recent reason for the low score (job loss, medical emergency, divorce), explaining it in writing can help. Bringing references from previous landlords who can confirm you paid on time also carries weight.

What 620 means for credit cards and lines of credit

Credit card issuers will offer you cards at 620, but the terms are poor. Interest rates typically range from 20% to 29% APR, credit limits are usually $300 to $1,000, and annual fees are common ($39 to $99). Secured credit cards, which require a cash deposit that becomes your credit limit, are often a better option at 620 — you deposit $500, get a $500 limit, and build credit by using the card and paying in full each month. After 6 to 12 months of on-time payments, you can move to an unsecured card with better terms.

Using a high-interest credit card to make everyday purchases and then carrying a balance is expensive and will keep your score low. If you do get a card at 620, use it only for small purchases you can pay off in full each month.

How to raise your score above 620

The fastest improvements come from lowering the amount of credit you are using. If you have a $5,000 credit limit and a $4,000 balance, you are using 80% of your available credit — a major score drag. Paying that down to $1,500 (30% utilisation) can raise your score by 20 to 50 points in one or two months. This does not require paying off the entire balance, just reducing it.

The second lever is payment history. Missing even one payment tanks your score; making every payment on time for 6 to 12 months raises it noticeably. Set up automatic payments for at least the minimum on every account so you never miss a due date. Older negative marks (late payments, collections, charge-offs) fade in impact over time — a late payment from 7 years ago hurts less than one from 7 months ago.

Do not close old credit accounts, even if you are not using them. The length of your credit history matters, and closing an account shortens your average account age. Do not apply for multiple new credit cards or loans in a short time — each application triggers a hard inquiry, which temporarily lowers your score by a few points.

Frequently Asked Questions

Can I get a personal loan with a 620 credit score?

Yes, but at a high cost. Online lenders and credit unions often work with 620 scores, charging 15% to 30% APR. Banks rarely do. If you need money, compare offers from at least three lenders before accepting, and avoid payday loans, which charge 400% APR or higher and trap you in a cycle of debt.

Will my 620 score improve if I pay off old debts or collections?

Paying off a collection account stops new damage but does not erase the mark from your credit report. The account will still show as "paid collection" for seven years from the original delinquency date. However, some lenders view a paid collection more favourably than an unpaid one, so it can help with future applications.

How long does it take to raise a 620 score to 700?

It depends on what is dragging your score down. If it is high credit utilisation, you can gain 50 to 100 points in 3 to 6 months by paying down balances. If it is recent late payments or collections, expect 12 to 24 months of on-time payments to see significant movement. Older negative marks fade faster than recent ones.

Is a 620 score better or worse than I think?

It is worse than average (the median score in most countries is 650 to 700) but not the lowest. You are not in the "very poor" range (below 580), so some mainstream lenders will still work with you, though at unfavourable terms. The key is treating 620 as temporary and focusing on the actions that move it upward.