Obtaining credit with a 625 credit score takes effort, but it can be done. A 625 score is considered substandard by most traditional banks, who prefer to lend to those with a minimum score of 675. Even at that score, your interest rates can be higher than those with scores of 750 or above. Acquiring credit and using it responsibly is an essential step to rebuilding your score.
Things You'll Need
Apply for credit with companies that advertise to individuals with lower credit scores. Search the Internet for "credit for bad credit" or visit an online credit card information site and select the "cards for those with bad credit" or similar option from the drop-down menu.
Contact companies that do not perform credit checks to issue you a line of credit. Some companies that offer "buy here, pay here" type of credit on in-store items such as furniture and vehicles do not run your credit report as long as you can provide them with proof of income and references.
Apply for a credit card with a department store. Many department store chains have more lenient requirements for issuing credit, enabling someone with a 625 score to be approved.
Sign up for a secured credit card issued through a bank. The issuing bank does not put collateral down on the card; instead, the cardholder funds the card using his own money. These types of cards act as traditional credit cards and can be subject to finance charges.
Apply for a home equity line of credit if you are a home owner. Some banks will issue a line of credit to individuals with a 625 score or lower. The appraised value of your home, amount remaining on your mortgage and your ability to pay back the loan can weigh more significantly than credit score when determining your eligibility for a home equity line of credit.
Tips & Warnings
- Be aware that many credit cards offered to those with a less than perfect credit score do carry higher interest rates.
- Photo Credit hand swiping credit card image by patrimonio designs from Fotolia.com
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