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640 Credit score: What You Need to Know in 2025
July 1, 2025
TL;DR
A 640 credit score is a great starting point for building a stronger financial future, falling within the "Fair" FICO score category. While not yet in the "Good" tier, this score often opens the door to various credit opportunities and serves as a solid base for improvement.
What Does a 640 Credit Score Mean?
A 640 credit score places you in the "fair" range on the FICO scale. While not a poor score, it's below the U.S. average. This means you may be approved for some loans and credit cards, but likely not with the best terms. Lenders might offer higher interest rates or require larger down payments, increasing the long-term cost of borrowing.
Think of a 640 score as a solid foundation with room for growth. It's a score you can build on to unlock better financial opportunities. While it might present some immediate hurdles, it's not a permanent setback. Positive financial habits can help your score head in the right direction, opening doors to more favorable lending options down the road.
Who Has a 640 Credit Score?
A 640 credit score is below the average for every major age demographic. According to 2023 data, average credit scores generally increase with age as people have more time to build a positive payment history. Here is the breakdown by generation:
- Generation Z (ages 18-26): 680
- Millennials (ages 27-42): 690
- Generation X (ages 43-58): 709
- Baby Boomers (ages 59-77): 745
- Silent Generation (ages 78+): 760
Credit Cards With a 640 Credit Score
A credit score of 640 places you in the "fair" credit range, which can be a mixed bag when applying for new credit cards. While you'll likely find lenders willing to approve your application, you may not qualify for premium cards that offer the most attractive rewards or lowest interest rates. Instead, you can expect to be approved for cards with potentially higher APRs and lower credit limits, often those specifically designed for individuals working to build or rebuild their credit.
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Auto Loans and a 640 Credit Score
A 640 credit score places you in the non-prime borrower category, meaning you can likely still qualify for an auto loan. However, you should anticipate higher interest rates than applicants with stronger credit histories.
According to Experian's Q2 2025 data, here is how average auto loan rates break down across different credit score tiers:
- Super-prime (781-850): 5.25% for new cars, 7.13% for used cars
- Prime (661-780): 6.87% for new cars, 9.36% for used cars
- Non-prime (601-660): 9.83% for new cars, 13.92% for used cars
- Subprime (501-600): 13.18% for new cars, 18.86% for used cars
- Deep subprime (300-500): 15.77% for new cars, 21.55% for used cars
Mortgages at a 640 Credit Score
A 640 credit score is high enough to qualify for several major mortgage programs. You'll likely meet the minimum credit score requirements for conventional, FHA, VA, and USDA loans. Since most lenders require a score of at least 620 for conventional and VA loans, your 640 score clears that initial hurdle, opening up multiple paths to financing a home.
However, while a 640 score gets your foot in the door, it will affect your loan terms. You can expect higher interest rates and more expensive private mortgage insurance (PMI) on a conventional loan. Lenders may also scrutinize your application more closely, and you likely won't qualify for jumbo loans, which typically require a score of 700 or higher.
What's in a Credit Score?
Figuring out what goes into your credit score can feel like trying to solve a complex puzzle, but it generally boils down to a handful of key factors.
Your payment history tracks whether you've paid past credit accounts on time.
Credit utilization is the percentage of your available credit that you're currently using.
The length of your credit history considers the age of your oldest account, newest account, and the average age of all your accounts.
Credit mix refers to the variety of credit products you have, such as credit cards, retail accounts, installment loans, and mortgages.
New credit accounts for how many new accounts you've recently opened and the number of hard inquiries on your report.
How to Improve Your 640 Credit Score
No matter your starting point, improving your credit score is always within reach. Whether you have a FICO® score or VantageScore, there are proven methods to boost your creditworthiness and achieve a healthier financial profile.
- Monitor your credit reports. Regularly checking your reports helps you spot and dispute errors that could be unfairly dragging down your 640 score. This also allows you to track your progress and confirm that your positive actions are being recorded correctly.
- Set up automatic bill payments. Since payment history is the single most important factor in your score, automating payments ensures you never miss a due date. For a 640 score, building a consistent record of on-time payments is the most critical step toward reaching the 'good' credit tier.
- Lower your credit utilization. High balances can signal risk to lenders, and reducing your credit utilization ratio below 30% can provide a significant boost to a fair credit score. Paying down balances or even paying multiple times a month shows you can manage credit responsibly without relying on it too heavily.
- Become an authorized user. Being added to an account with a long, positive history can quickly add valuable data to your credit file. This strategy can be particularly effective for someone with a 640 score who may have a thin or young credit history.
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