What Does 633 Credit Score Mean?
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A credit score helps banks and other lending institutions determine your capacity to repay your debt or credit dues within the allotted time frame. Consequently, a credit score assumes high importance in evaluating whether you are eligible to apply for a loan or credit card in the UAE.
Credit scores, lying between 300 and 900, indicate a range from very low to very high. A 633 credit score, while lying near the middle point of the range, is considered a low credit score. This can have a direct impact on your ability to obtain your preferred loan or credit product.
This article will help you understand what is a 633 credit score and find answers to queries like is 633 a good credit score, what are the loan and credit card options available for a 633 credit score, and more.
633 Credit Score – An Overview
To understand the placement of a 633 credit score in the available range, we can first have a look at the following table of credit scores along with the corresponding categories and equivalent stars.
| Credit Score (Range) | Category | Star Equivalent |
|---|---|---|
| 746-900 | Very High | 5 |
| 711-745 | High | 4 |
| 651-710 | Medium | 3 |
| 541-650 | Low | 2 |
| 300-540 | Very low | 1 |
As visible from the table, a 633 credit score receives a 2-star grade and is regarded as a ‘low’ credit score in the UAE as it indicates your lack of credit record or your financial mismanagement with respect to previous financial commitments.
With a credit score of 633, it becomes challenging to obtain a personal loan, mortgage, or credit card. Given a 633 credit score, lenders generally impose higher borrowing rates to reduce the risk, which can directly increase your financing expenses.
What a 633 Credit Score Can Get You?
Although a 633 credit score makes it difficult to receive a new loan or new credit card, the chances of approval are always there. Just keep in mind that you will be able to avail of your preferred product only at higher rates of interest.
With a 633 credit score, you can still explore the following –
Credit Cards for 633 Credit Score
Generally, getting your credit card application approved with a 633 credit score is difficult. Moreover, even if you get acceptance, you will not be able to enjoy the benefits that someone with a good credit score can, all while having your credit limit constrained as well.
At the same time, obtaining a credit card with a 633 credit score can allow you to gradually enhance your creditworthiness if you make on-time payments on your card account. You can obtain the following credit card kinds with a credit score of two stars –
Secured Credit Cards:
In the UAE, you can obtain a secured credit card with a 633 credit score, where you would be required to make a cash deposit as security for the card. In case you fail to make the monthly payments, this deposit will serve as security.
Pro Tip: Your card limit will be based on the deposit amount that you provide in case of secured credit cards.
Unsecured Credit Cards:
While you can avail of an unsecured credit card with a 633 credit score, most banks in the UAE will charge heavy interest and a high-maintenance fee on this card.
Personal Loan for 633 Credit Score
One can avail of a personal loan with a 633 credit score in certain cases. However, the possibility of negotiating the terms like interest and the amount of the loan is almost non-existent with such a credit score – the chances of you getting a low-interest rate on the loans here are low.
Some lenders can provide you with a secured personal loan, where your provided asset will serve as collateral. In case you fail to make regular repayments, the collateral will be taken into possession.
Home Loans for 633 Credit Score
You can secure a home loan with a 633 credit score, with some banks and financial institutions offering home loans even to individuals with low credit scores. However, the application process will be longer as the lender will prefer to observe your finances over time to verify if you can make the repayments in time. Moreover, keep in mind that even if your loan is approved, you will be charged higher interest rates to compensate for the risk (for the provider), which is the highest for home loans due to the high amount and long repayment tenure .
Auto Loans for 633 Credit Score
While one may get a car loan for a credit score as low as 633, the approval process could prove troublesome. The interest rate would be comparatively higher than for people who have a good credit score. Some other alternatives that the bank or loan provider may offer include finding a co-signer, paying a large portion as a down payment, and more.
Insurance Plans with 633 Credit Score
While credit score does not directly relate to the insurance plans, the providers still consider it a key factor in determining the premium that you would need to pay. Thus, if you have a 633 credit score, you can expect higher premiums for your insurance plan.
Tips to Improve Your 633 Credit Score
Discussed below are some actions that you can undertake to improve your credit score:
Bill Payment on Time:
Among the primary factors considered in the calculation of your credit score, your 633 credit score can be quickly increased by repaying all your credit card debt on time.
Regular Credit Monitoring:
You can keep up with your credit if you regularly check your credit score. This way, you will be able to find inaccuracies in your credit report and fix them right away by regularly monitoring them.
Reduce the Total Debt:
If you have considerable debt, you will find only a few banks willing to lend you money. Moreover, any debt that has stretched beyond its specified tenure can reduce your credit score. Thus, you can pay off your debts to quickly raise your 633 credit score and qualify for loans and credit cards with low interest rates.
Control your Expenditures:
If you shop using a credit card, it is advisable to keep an eye on the card and the expenditures as overspending (beyond the specified limit) can result in a drastic reduction of your credit score. However, by monitoring your card regularly and keeping your spending in check, you can easily enhance your score.
How to Check Your Credit Score for Free?
AECB and Policybazaar.ae have partnered to give you the opportunity to check your credit score for free. You only need to provide a few details about yourself to check your credit score in UAE for free.
Key Takeaways
A credit score of 633 indicates either a lack of credit history or a poor credit history made up of questionable financial decisions over a significant period. Such a credit score makes it challenging to obtain a personal loan, mortgage, or credit card. And even if your application for any of these is approved if you have a 633 credit score, the extent to which you can savour the benefits will be less than that for individuals with high credit scores.
At the same time, it is crucial to remember that credit score is dynamic and can be improved over time with proper financial management and repayment of all the dues and debts on time. You can start by repaying your credit card dues and loan instalments on time, monitoring your credit cards and the applicable expenditures, and responsibly using your cards and financial instruments. Consistently follow all these tips, and you can easily boost your credit score!
| Learn More about Other Credit Score | ||||||
|---|---|---|---|---|---|---|
| 500 | 600 | 633 | 650 | 680 | 700 | 703 |
| Credit Score for different types of Loan | ||
|---|---|---|
| Credit Score for Personal Loan | Credit Score for House Loan | Credit Score for Car loan |
