A fair credit score is a score of 640-699, which is slightly below the average credit score. Credit scores range from 300 to 850, and while a fair credit score is enough to get approved for some credit cards or loans, you’re unlikely to get the best terms.
Key Things to Know About Fair Credit Scores
- Roughly 13.5% of people have fair credit, according to WalletHub data.
- The average person with fair credit is 47 years old and has an annual income of $54,000.
- Not all lenders define fair credit the same way, as some may have slightly lower standards, starting the fair credit range at 580 and ending it at 669, for example.
- Graduating to good credit could take as little as one month, depending on your circumstances, but it could also take much longer.
- You can see exactly where you stand and how long it will take to improve by checking your latest credit score for free on WalletHub.
Check Your Credit Score – 100% Free
In addition to free daily updates to your credit score and report, you can also get a personalized credit analysis on WalletHub. That guidance, combined with the additional fair credit info you’ll find below, will help you reach Top WalletFitness® in no time.
Do I Have Fair Credit?
You can find out if you have fair credit by checking your credit score, which you can do for free on WalletHub, through the credit bureaus, or via other credit score sites. Once you have verified your identity, you can access your credit score and determine whether it falls within the fair category in the credit score range.
People with fair credit also tend to share certain traits. For example, they usually have less than $5,000 in available credit, an average credit utilization ratio of 56%, and no more than one payment that was 60+ days late in the past year.
You can see how you compare to the other credit tiers and to the average person with fair credit below:
| Category | Score Range | % of All Scores | Average Age | Average Income | General Qualifications |
| Bad | 300-639 | 31.08% | 52 | $45,797 | Behind on payments High credit utilization 60+ days late on payment in last 90 days Bankruptcy in last 3 years |
| Fair | 640-699 | 13.47% | 47 | $53,947 | 1+ credit cards/loans Less than $5k in credit lines 60+ days late on payment no more than once in last 12 months |
| Good | 700-749 | 17.33% | 45 | $58,740 | 3+ years of credit history $5k+ in credit lines Not 60+ days late on payment in last 12 months |
| Excellent | 750-850 | 38.12% | 41 | $64,269 | 5+ years of credit history $10k+ in credit lines Never 60+ days late on payment Never declared bankruptcy |
Fair credit isn’t even average these days. The average credit score is 702 based on the VantageScore model and 715 based on the FICO score model, both of which fall in the good credit category.
Fair vs. Good Credit Scores
There’s a big difference between fair credit and good credit – not in terms of the actual credit score ranges, though, which aren’t separated by much. Rather, good credit scores grant you a lot more perks.
If you can get your credit from fair to good:
You get more attractive offers on loans and credit cards.
Lenders naturally give more favorable terms to people who demonstrate more responsibility as borrowers. With good credit, you’ll have a better chance of getting a rewards credit card, higher credit limits, and lower interest rates. For example, the average APR among credit card offers for people with good credit is 23.46%, while the average for fair credit is 27.36%, according to WalletHub’s latest credit card landscape report.
You have a better chance of renting or leasing.
The person from whom you rent/lease an apartment or car will likely check your credit to see your payment history. People with good credit will seem more trustworthy.
You have more job prospects.
An employer can’t check your credit score. But they can look at your credit report if they have your permission and a “permissible purpose.” Responsible payment history is what they’re looking for most.
You can get lower insurance premiums.
There is a strong correlation between higher credit scores and lower car insurance premiums. For example, people with no credit pay up to 102% more than folks with excellent credit, on average, depending on the state.
How to Go From Fair to Good Credit
Improving your credit may take some time. But there certainly are some steps that you can take to put yourself on the path to Top WalletFitness®. Here’s what you need to do:
Dispute credit report errors/fraud.
It’s important to regularly set aside some time to make sure everything on your report is valid. Removing mistakes and reporting fraud when you find them are easy ways to raise a lower score.
Pay on time and reduce debts.
Prompt payments on new charges are absolutely crucial for raising your score. When paying off already existing debts, take care of the ones with the highest interest rate first to avoid as much new interest as possible.
Reduce your credit utilization.
The amount of your available credit that you use each month comprises about 30% of your credit score calculation. Ideally you should use less than 30% of your credit line. The lower, the better.
Get a no annual fee credit card.
You won’t be able to qualify for great rewards or 0% rates until you reach good credit. So your objectives in the meantime should be to build credit and save money. A no annual fee credit card is the best tool for the job. And if you’re concerned about getting approved, you can always place a security deposit on a secured credit card.
Sign up for a WalletHub account.
Not only will you receive free credit scores and reports updated daily, but you’ll also get a personalized credit analysis. This will tell you exactly how to improve your score and even how long it will take.
At the end of the day, you just need to consistently make good decisions and avoid falling back on old habits. For more advice, check out WalletHub’s complete list of credit improvement tips.
WalletHub experts are widely quoted. Contact our media team to schedule an interview.