A credit score of 637 is generally considered fair since it falls within the range of 580-669 as per the categories set by various credit rating agencies. However, with this score, borrowers may find it difficult to get loans at favourable terms. An ideal score for loans on favourable terms and lower interest rates is 700+.
Here is how one can work towards improving a credit score in the range of 600s:
- Dispute errors with rating agencies – Credit users must ensure to go through the credit report periodically and in detail. In case of any errors or misinformation in the report, this must be immediately disputed with the credit rating agency.
- Timely repayments – It is important to make timely repayments to ensure a good credit history. Lenders check for the schedule of repayments from the credit report of applicants before granting fresh credit.
- Clearing pending bills – While trying to achieve a higher credit score, borrowers must clear all pending bills within the due date.
- Lower credit utilisation – Credit card users must keep credit utilisation to a minimum for achieving a good credit score. This reflects that the credit user can manage credit well.
- Good credit behaviour – To improve credit score in a short period, borrowers must reflect good credit behaviour by avoiding multiple credit applications, timely EMI payments, and also limiting credit card usage.
Additional Reading: Can I Buy A House With A 637 Credit Score
637 as credit score may not work in favour of borrowers who are looking for higher loan amounts with long tenure or lower interest rates. Therefore, it makes sense to first work towards improving the score before making a loan or credit application.