Fair Credit
Explanation: A FICO credit score between 620 and 679. Should you be unaware of your credit score, you can use our free credit estimator. Alternatively, you most likely have fair credit if:
- You don't have a credit card under your own name with a limit above $5,000 or
- You've been over 60 days late on two or more major bills (i.e. credit card, loan, medical bill) in the last 12 months or
- You've defaulted on a credit card or declared bankruptcy within the past five years
Our Thoughts: Fair credit, at its basis, is essentially a position of limbo. If you haven't made any credit missteps and are building a solid credit history from scratch, having fair credit means that you've added enough information to your credit file to no longer qualify as having "no or limited credit" but do not have the requisite experience to be regarded as having good credit history. If you damaged your credit in the past, fair credit is merely a stepping stone to your previous stature. As such, the rates and fees available to people with fair credit are still relatively high and the rewards rather low.
Background: Card Hub estimates put the percentage of U.S. adults with fair credit at about 15%. Pinpointing the exact number is difficult given the differences in classification used by each bank. What's more, the percentage of people with fair credit would not even provide an accurate picture of how many people qualify for fair credit credit cards and loans. Other factors, such as disposable income and assets, also play a role in determining eligibility.
Mistakes on your major credit reports can lead to inaccurate credit score classifications. According to the National Foundation for Credit Counseling's 2011 Consumer Financial Literacy Survey, 65% of Americans had not reviewed their credit reports within 12 months of the survey being conducted. You can order free copies of your Experian, TransUnion and Equifax credit reports every 12 months at annualcreditreport.com.
