632 Credit Score: Is It Good or Bad?

Nov 08, 2022 · 10 min read

At a Glance

It is deemed "Fair" to have a credit score of 632, which is lower than the average credit score in the US. Your credit score is more important than you think it is as it affects whether you are approved for credit cards or loans and the interest rate you will pay even if you are.

As of April 2021, 12.5% of Americans have credit scores in the “Fair” range.

A 632 credit score is not bad but is also not exceptional. A 632 credit might signify that you have had difficulties with credit in the past. Due to this, some lenders may view consumers with credit scores of 632 as having bad credit and refuse your credit applications. Others may approve your loan but are likely to charge you exorbitant interest rates and fees. Hence, you will end up paying more money in interest rates as compared to someone with a credit score that falls in a good range.

Is 632 Credit Score Good or Bad?

A 632 credit score is neither bad nor excellent. It falls in the “Fair” credit score range and hence 632 credit score is categorized as average by well-known credit scoring systems.

Looking over your credit report, you can find out credit behaviour that affected your score to be low. If you quit these behaviours that contributed to the fall in your credit score, you might start laying the groundwork for a better score.

What Impacts your 632 Credit Score?

Your credit score is frequently calculated using information from your credit file, which includes details about your debt management history. The score is a reflection of your credit and bill-paying behaviours. Your credit score will rise if you have good credit habits; otherwise, it will fall if you have bad or irregular practices. Your 632 credit score could be impacted by several variables, including:

  • Public information
  • Credit Utilization Ratio
  • Late or missed payments
  • Length of credit history
  • Total debt and credit mix
  • Recent credit activity on your account

Public Information


If bankruptcies or other public records appear on your credit report, it can severely impact your credit score. Even though your credit score may increase before the bankruptcy report disappears from your record, there is a high possibility that lenders might refuse to work with you because of bankruptcy billing.

Credit Utilization Ratio


To determine your Credit Utilization Ratio, add up the balances on your revolving credit accounts and divide them by your total credit limit. For example, if your credit card has a limit of $10,000 and you owe $2,500, your Credit Utilization Ratio is 25%. It is recommended that you keep your Credit Utilization Ratio within 30% to avoid lowering your credit score. Credit usage is responsible for about 30% of your credit score.

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Late or Missed payments


Delinquent accounts, and late, or missed payments can harm your credit score. Making it a habit of paying your bills on time will help improve your credit score. It is the biggest influence on your credit score, which accounts for 35% of your FICO score.

Length of Credit History


Along with other things, the length of your credit history is also a detriment to your credit score. The number of years you have been a credit user can influence up to 15% of your FICO score. NTC (New to Credit) users must be patient and careful to avoid destructive credit behaviours.

Total Debt and Credit mix


If you have multiple credit accounts, revolving and installment credit, then the FICO credit score will usually work in your favour. On the other hand, if you have only one credit account and your credit score is 632, it might help if you broaden your credit portfolio. The debt and credit mix makes up 10% of your total FICO score.

Recent Credit activity


If you are someone who keeps applying for new loans and credit cards, your credit score might take a hit. Some companies trigger a check known as a hard inquiry when you apply for loans or credit cards. What happens during the hard inquiry is that the lender obtains your credit score to determine if you can get the credit line or not. Hard inquiries might drop your credit score by a few points, but it rebounds within a few months if you keep up with your credit card bills. New credit activity can account for up to 10% of your FICO scores.

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What does a Credit Score of 632 mean for your Life and Finances?

There is opportunity for improvement even though your credit score of 632 isn't always awful. A credit score of 632 will have numerous effects on your life and finances. Your life and finances will be impacted in some ways if your credit score is 632, such as:

  • Personal loans with a high APR
  • High-interest rates or refusal to approve unsecured loans
  • Obtaining cell phone connectivity
  • Having trouble finding apartments
  • Credit cards with high-interest rates

Can you get a Credit Card with a 632 Credit Score?

Yes, you can apply for the Azpire Credit Builder Card to improve your credit score of 632. A credit score of 632 can still be used to get a credit card, but there is a significant chance that the lender will charge you a high-interest rate and that other banks will reject your application. You can obtain a secured credit card, such as the Zolve Azpire Card, without high interest rates, even if your credit score is 632. One of the best things you can do to improve your credit is to apply for this secured credit card.

How to Improve your 632 Credit Score?

Your low credit score will eventually increase from 632 to a decent (670-739) rating with consistent good credit behaviour and practice. The following are a few strategies that could aid you in raising your 632 credit score:

  • Paying your bills on time
  • Avoiding high credit utilization
  • Debt management plan
  • Credit builder loan
  • Use a secured credit card
  • Establish a credit mix

Paying your bills on time


The secret to improving your 632 credit score is to pay your obligations on time. This is the best course of action if your credit score is 632 and you're looking for ways to improve it.

Avoid high credit utilization rate


Regardless of how many accounts you have, strive to maintain your credit utilization below 30% to prevent your credit score from declining.

Debt management plan


A debt management strategy may be useful if you're having trouble making your credit card payments. To develop a feasible repayment schedule, you must work with a non-profit credit counselling organization or consult a credit counsellor to improve your 632 credit score.

Credit builder loan


These small loans are provided by some credit unions and are intended to help NTC users establish credit. If you continue to make the required payments, these loans aid in the improvement of your credit score.

Apply for a secured credit card


A deposit equal to the entire credit limit is usually required for this, which often has a low credit limit of just a few hundred thousand dollars. The creditor reports to the three main credit bureaus your use of this card and prompt, consistent payments. Your FICO score is based on information from your credit files regarding how you have previously handled credit.

Look no further if you want to improve your 632 credit score by applying for a secured credit card.

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What is it?The Zolve Azpire card helps you build credit using your own money. It is a credit builder card that helps you start building your credit score from the first transaction. It is available to all, even if your credit score is 632.

We record every swipe of your Zolve Azpire card, and by the month’s end, we add up all the transactions for the month and report it to the bureaus so that your credit score gets built for a better financial future.

Establish a credit mix


The FICO scoring algorithm favours users with many credit accounts and a range of loans, including installment loans like mortgages, auto loans, and home equity loans.

If your credit score is 632, you can have trouble getting loans or credit cards. You should be aware of this and do something to improve your credit score. If you raise your credit score from 632 to good (670-739), you can be eligible for better terms, lower fees, and lower interest rates.

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