A borrower has a FICO score of 635 out of a possible 850. 

Pamela Bowes is a hairstylist living and working in Oregon. She has her own house which she inherited from her parents and enjoys her independence now that she is divorced.  Her credit score is 635.

A score of this level is considered Fair on this scale, where Very Good is the highest rating.  A number of variables affect the credit score, but with 635, Pamela would be considered to be a medium risk by the lending institutions. The conclusion would be that she has had some issues in the past and had not always adopted the expected behavior during the course of repaying loans (probably during the divorce). 

As a result of this credit score, it would be difficult for this borrower to obtain the best offers/rates from lenders, especially the credit card companies. Pamela would probably have to pay somewhat higher fees and interest rates and may have to make larger down payments on installment loans and mortgages. In addition, she may not be granted very high credit limits or allowed larger loan amounts.

The positive factors on this credit report could still indicate 100% on-time repayments, but some poor recent behavior. Missing a single payment on one account rather than many or on an account with a very low balance does not significantly lower the credit score. However, with consistent on time payments, lenders will believe you are responsible enough to repay your loans. Also, having several revolving accounts helps raise the score, since a history is then established.  

The negative factors driving the score down include having: at least one collection account or negative public record, older and more frequent missed payments on several accounts and having all accounts in the report established for a period of less than three years.