Is 640 a Good Credit Score to Buy a House
A 640 credit score might not be perfect, but it can still get you closer to your dream of homeownership. In the world of mortgage lending, your credit score plays a big role in whether you're approved for a loan, the type of loan you qualify for, and the interest rate you receive. While a score of 640 is considered “fair,” it’s still within the acceptable range for many mortgage programs especially for first-time homebuyers or those using government-backed loan options. What Does a 640 Credit Score Mean? Credit scores are used by lenders to evaluate how risky you are as a borrower. The most widely used scoring model is FICO, which categorizes scores as follows: Excellent: 750 and above Good: 700–749 Fair: 580–669 Poor: Below 580 A 640 credit score falls into the "fair" range. It suggests that while you may have had some credit issues in the past such as late payments or high utilization you’re not in the high-risk category. Most importantly, you are still...