Is 610 a Good Credit Score?

In terms of money, your credit score is one of the most important numbers. When lenders see this, they can tell if you’ll be able to pay back the money they lend you. But what constitutes a “good” credit score can be confusing. We will delve into the question of whether a credit score of 610 is good or bad in this article.

What is a Credit Score?

A credit score is a three-digit number that summarizes your creditworthiness It’s calculated based on the information in your credit reports from the three major credit bureaus – Experian, Equifax, and TransUnion

Scores range from 300 to 850. The higher the score, the lower the risk you pose to lenders. People with higher scores typically get approved for credit and pay lower interest rates.

Credit scores come in a number of forms, but FICO and VantageScore are the most common. They have slightly different score ranges:

FICO Score Ranges:

• 800+ = Exceptional
• 740-799 = Very Good
• 670-739 = Good
• 580-669 = Fair
• 579 and below = Poor

VantageScore Ranges:

• 781-850 = Excellent
• 661-780 = Good
• 601-660 = Fair
• 500-600 = Poor
• 300-499 = Very Poor

So where does a 610 credit score fall?

Is a 610 Credit Score Good or Bad?

A credit score of 610 is considered fair by both FICO and VantageScore. It falls within the fair ranges of 580-669 for FICO and 601-660 for VantageScore.

While a 610 score is below the average credit score in the US of around 695, it’s not a terrible score. But it’s not an ideal score either.

With a fair credit score like 610, you’ll likely face some challenges when applying for credit:

• Higher interest rates – Lenders will view you as higher risk, so you’ll get less favorable rates on loans and credit cards.

• Lower credit limits – Lenders will be more cautious in extending credit, so you may get lower limits approved.

• More turns down—Many lenders have minimum score requirements, which means you might not be able to get their best offers.

• More security deposits – You may have to put down security deposits for things like utilities, cell phone service, etc.

So while a 610 credit score doesn’t preclude you from getting credit, you’ll definitely pay more for it.

Credit Score Factors

A 610 score is “fair,” but you need to know how your score is calculated to fully understand what that means. The exact formula is secret, but here are the main parts:

• Payment history (35% of score) – Whether you pay your bills on time. Late payments can really drag down your score.

• Amounts owed (30% of score) – How much credit you’re using compared to your limits, also called credit utilization ratio. High balances hurt your score.

• Length of credit history (15% of score) – How long you’ve been using credit. A shorter history lowers your score.

• New credit (10% of score) – Opening a lot of new accounts recently dings your score temporarily.

• Credit mix (10% of score) – A healthy mix of credit types (credit cards, loans, etc.) helps your score.

Looking at these categories, people with 610 credit scores likely have late payments, high utilization, and a short credit history dragging their score down. Even one or two missteps can drop you down to a fair score.

How to Improve a 610 Credit Score

The good news is that credit scores are not set in stone. With some time and effort, you can absolutely raise a 610 score. Here are some tips:

• Pay all bills on time – Set up autopay or reminders to avoid late payments. Bring any past-due accounts current.

• Lower credit utilization – Get balances well below 30% of your credit limits. Pay down balances and ask for higher limits.

• Don’t close old accounts – Having long, positive payment histories helps your score, so keep old accounts open.

• Limit new credit applications – Apply for new credit sparingly, since new accounts lower your score temporarily.

• Monitor your credit reports – Dispute any errors you find that may be unfairly lowering your scores.

• Practice good money habits – Making on-time payments, reducing debt, saving money – all the financial basics will help build your scores.

With diligence and patience, you can rebuild and raise your credit over time. Monitoring your scores lets you track your progress.

What is a Good Credit Score to Have?

Since a 610 credit score is only fair, what is considered an actually good score?

Here are some credit score goals to shoot for:

• Good – 670 to 739 (FICO), 661 to 780 (VantageScore)
• Very good – 740 to 799 (FICO)
• Excellent – 800+ (FICO), 781 to 850 (VantageScore)

A score of 700 is generally seen as the start of good credit, when you begin to qualify for better interest rates from lenders. But you can set whatever target makes sense for your credit needs.

The higher you can raise your score, the more credit options will open up at better rates. But even going from fair to good credit can save you money.

The Takeaway

A credit score of 610 is considered fair by the major credit scoring models. While it’s not a terrible score, it will make getting approved for credit more challenging and expensive.

With some diligent credit management over time, a 610 score can absolutely be improved to good credit or higher. Paying bills on time, lowering balances, and practicing good money habits will help increase your score.

Knowing your credit score gives you the power to understand where you stand with lenders. Monitoring it lets you track your progress as you work to build your scores. So don’t get discouraged by a 610 – know it’s an opportunity to strengthen your credit foundation.