Credit Karma is a website that offers a free service that lets you check your credit scores and reports. In the UK, Credit Karma uses TransUnion’s scoring system, which ranges from 0 to 710. TransUnion’s range is different from other credit agencies like Experian and Equifax, which have their own scoring systems.
This means that your 642 score means something different on Credit Karma than on ClearScore or Experian.
If your score is 642 on Credit Karma, then you’re in the ”Excellent” category on TransUnion. This is the highest credit score band and, as you can imagine, it can give you access to the very best deals on loans, credit cards, and mortgages.
A credit score of 642 falls under the fair credit rating, which means it is considered average. With a score of 642, you may face some challenges getting approved for credit cards and loans with the best terms However, there are steps you can take to improve your 642 credit score over time.
What Does a 642 Credit Score Mean?
A FICO credit score ranges from 300 to 850 Scores from 580 to 669 are considered fair. A 642 credit score falls right in the middle of the fair range
About 17% of consumers have credit scores in the fair range. While not excellent, a 642 credit score means you have some positive credit history established. Credit scoring models consider scores in the fair range to represent an average or moderate level of credit risk.
With a 642 credit score, you may still qualify for credit cards and loans, but likely with higher interest rates or fees. Lenders view fair credit scores as riskier than good or excellent scores. You may have to pay more or meet stricter criteria to get approved.
For example, with a 642 credit score:
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You may qualify for an unsecured credit card, but with a high APR and annual fee. Rewards cards are harder to get approved for.
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Auto loan rates may be higher, and you may need to put more money down. Shopping around for the best rates is important.
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You can likely qualify for an FHA mortgage, but will pay a higher interest rate and mortgage insurance. Down payment requirements are also stricter.
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Personal loan options exist, but expect to pay higher interest rates compared to those with good credit scores.
So while possible to get approved for credit with a 642 score, the terms won’t be as favorable as they would be with higher scores.
What Makes Up a 642 Credit Score?
The most widely used credit scores are FICO and VantageScore. While the exact formulas are proprietary, we know they take into account five main factors:
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Payment history – Whether you pay your bills on time. This has the greatest impact on scores.
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Credit utilization – The percentage of available credit you’re using. Keeping this below 30% helps.
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Credit history length – How long you’ve had credit accounts open. Longer histories improve scores.
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Credit mix – Having different types of credit like credit cards and loans.
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New credit – Opening new accounts may cause a short-term drop in scores.
Looking at your full credit reports can help identify what’s hurting your 642 credit score. Here are some common reasons for fair scores:
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Late or missed payments bringing down your payment history.
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High balances leading to high credit utilization rates.
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Not enough credit history established yet if you’re a new credit user.
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Too many new accounts or credit checks lowering your score temporarily.
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Major derogatory marks like bankruptcies, although these decline in impact over time.
How to Improve a 642 Credit Score
The good news is a fair 642 score can definitely be improved with some positive credit habits over time. Here are effective ways to boost your credit score from 642:
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Pay all bills on time. Set up autopay or reminders to avoid late payments in the future. Bring any past due accounts current.
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Lower credit utilization. Pay down balances and keep debt below 30% of your credit limits. Ask for credit limit increases.
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Avoid unnecessary hard inquiries. Only apply for credit you need – too many inquiries can lower scores temporarily.
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Don’t close old accounts. Keeping your longest credit accounts open preserves your credit history length.
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Review reports regularly. Dispute any errors with the credit bureaus to keep your reports accurate.
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Practice good credit mix. Having credit cards and installment loans can help over the long term.
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Let negative marks age. Collection accounts or late payments do less damage over time.
With consistent good credit habits, you can see your 642 score start to improve within a few months. But maximizing your score takes patience and perseverance. Keep up positive habits long-term.
How Long Does It Take to Improve from 642?
How long it takes to go from a 642 credit score to a higher score depends on your specific credit situation. If you have major negatives like a past bankruptcy or foreclosure, it can take longer for your score to recover.
Generally, you can expect to see some credit score improvement around six months after you implement good credit habits – but it takes consistent effort.
Here are some examples of approximately how long it may take to increase your credit score from 642:
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Paying down credit card balances to lower utilization – Can see improvement in three months
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Getting current on past due accounts – Score increase possible in six months
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Letting the impact of a late payment lessen over time – May take over a year
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Letting a past bankruptcy or foreclosure age – Can take seven years to improve significantly
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Increasing average age of credit history – Gradual improvements over years
Shoot for achieving small, incremental increases over time rather than expecting your 642 score to suddenly jump to excellent. Even a 20 or 30 point increase gets you headed in the right direction.
Is a 642 Credit Score Good or Bad?
Whether a 642 credit score is good or bad is subjective, but it’s considered average or fair by most standards. Here’s a look at how a 642 score stacks up:
The Pros
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It shows you have some positive credit history established already. Many people have to build up from little or no credit history.
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You can still qualify for credit cards and loans – just likely with less favorable terms than those with excellent scores.
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Improvement is very achievable if you practice good credit habits consistently.
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Your 642 score means you have an opportunity to work towards and reach good credit.
The Cons
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Interest rates and fees will be higher with a 642 score compared to someone with very good or excellent credit.
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Approval for the most rewarding credit cards with the best terms will be difficult.
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Options for mortgages and auto loans may be limited without putting more money down.
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You are more likely to have a credit application denied than someone with very good credit.
Overall, while a 642 credit score is considered average or mediocre, it’s still in the fair range. The good news is you can take actions to boost your 642 score over time with patience and by forming positive credit habits. Monitor your progress regularly and keep persevering – a good credit score is achievable if you put in the effort.
Why is my credit score 642 on Credit Karma?
We presume you’re probably not asking this because you’re complaining. But if you’re curious about why exactly you have a credit score that’s “Excellent”, the answer is usually down to a few simple things:
- You don’t have any missed payments in your credit history.
- You also probably have more than a few credit accounts, with a healthy and long activity.
- You don’t have any judgments or defaults registered against you, at least not in the past 6 years.
- You don’t rely on credit to make ends meet so you have a low credit utilisation.
- And you’ve made it easy for TransUnion and lenders to verify your identity because you’ve registered to vote.
In short, the lenders know you’re a responsible borrower who pays bills on time and is stable financially.
Does having a 642 score on Credit Karma mean I’ll automatically get approved for credit?
You might expect that having an “Excellent” credit score can mean automatic approval whenever you apply for a loan or another financial product.
The reality, though, is a bit more complicated.
First of all, TransUnion (where Credit Karma gets your score from) is the UK’s third largest credit reference agency. Each agency gets slightly different data and calculates your score differently. This means that having an “Excellent” credit score on TransUnion doesn’t mean that you’ll have one on Equifax or Experian. So check those scores as well to see where you stand.
Second, it’s also possible to simply have errors in one credit file – if your Credit Karma score is much higher than what you see on ClearScore or Experian, check those credit reports and correct anything that might seem off.
Third, lenders will always want to see that you actually can afford making payments on time. So expect to have to provide proof of income and other details regardless of how good your credit score is.
Finally, sometimes you can have a good or excellent credit score but still be refused because lenders want to see more meat to your credit file. It’s very possible to have a very high credit score but one that’s calculated on the basis of a very small credit agreement – for example, an active mobile phone contract that’s a few years old.
This is why, if your TransUnion credit score is 627-710, you should have two main priorities:
- Keep your credit score in the “Excellent” band. You can do this by using Direct Debit, payment reminders, or an arranged overdraft line to avoid missed payments. wherever possible, or a banking app with “upcoming payment” reminders. You should also update your electoral registration every time you move.
- Add more depth to your credit file with another credit agreement. This is where a credit-building subscription like Wollit can help.
Wollit keeps your credit in great shape by reporting your monthly subscription as loan repayment to all three main credit reference agencies, including Equifax – which is where Credit Karma gets its data from. This helps you maintain your credit history, which is the main factor that matters for your credit score.
On top of this, Wollit can also add your monthly rent payments to your credit file. While you won’t see this in your Credit Karma account (Wollit reports rent to Experian), it can still make a real difference. This is because it can show lenders that you pay all bills on time and you’re indeed as responsible as your credit score says.
It can also save you quite a bit of money. Dropping to the next Credit Karma band, called “Good”, could mean as much as £50,000 in additional interest on a mortgage of £400,000. That’s a lot to pay for letting your credit score slip. Time to act.
Is 642 A Good Credit Score? – CreditGuide360.com
FAQ
What can I do with a 642 credit score?
With a 642 credit score, you might be able to get a traditional credit card. While most credit card issuers don’t publish minimum credit scoring standards, some will approve applicants in the fair credit range.
Can I buy a house with 642 credit score?
Can I get a car with a 642 credit score?
Key takeaways. There is no minimum credit score required to buy a car, but most lenders have minimum requirements for financing. Most borrowers need a FICO score of at least 661 to get a competitive rate on an auto loan.
Is 700 a good credit score?
For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent. For credit scores that range from 300 to 850, a credit score in the mid to high 600s or above is generally considered good.
What is a 642 FICO ® score?
A 642 FICO ® Score is a good starting point for building a better credit score. Boosting your score into the good range could help you gain access to more credit options, lower interest rates, and fewer fees.
Is a 642 a good credit score?
Approximately 27% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future. Think of your FICO ® Score of 642 as a springboard to higher scores. Raising your credit score is a gradual process, but it’s one you can begin right away. 74% of U.S. consumers’ FICO ® Scores are higher than 642.
What is a good credit score?
The most widely recognized credit scores, like those developed by FICO and VantageScore, usually fall in the 300 to 850 range. But some scores use different ranges. Credit-scoring models rely on a variety of factors to calculate your scores, drawing on credit-report data from the three main consumer credit bureaus.