The credit score is responsible for defining if you can choose a personal loan, credit card or any other financial benefit. If you have a score of 660, you are probably wondering if it is good enough to access any of the abovementioned services.
Most financial and banking institutions reference the FICO score, ranging from 300 to 850 points. 300 is the worst score, while 850 will give you access to virtually anything you want.
Is a 660 credit score good or bad?
Ranking at 600 with your credit score indicates that you are in the right range on the FICO scale, this is not bad credit, but it could be better. Lenders offer their services to customers with good or excellent credit; with a score of 660, you can access many benefits, but the interest rates will not always be the best.
You will be considered a potentially risky borrower when they evaluate your history and evidence that you have a 660 score. You can access benefits such as credit cards and loans, but the interest rates will be higher.
Don’t worry too much about having a 660 score; it is easy to improve by taking the right steps. You should avoid a low score; for that, you can’t fall behind with your payments, and you should avoid applying for new loans or products in the upcoming months.
Possibilities of acquiring a credit card with a 660 score
When banks or private financial institutions look at your 660 scores, they may ask you for a security deposit to approve the credit card. The best option is to apply for a secured credit card, but these products require deposits of $500 to $1,000.
Another option is to acquire an initial credit card from a credit union, an unsecured credit card with a low credit limit and a high-interest rate. The process does not mean you cannot get a regular credit card.
However, you must make your monthly payments on time and keep the balance below 30% of the credit limit. Otherwise, you will only damage your credit score.
Mortgage loans with a 660 credit score
The minimum that a lender requires to approve you is a credit score of 620. The minimum to acquire an FHA loan is a FICO score of 500; i.e., with 660, you will be able to obtain it without any problems. When you exceed a credit score of 580, your down payment will be lower than the rest; it can be as low as 3.5%.
How to improve your credit score of 660?
Generally, when you have a credit score of 660, there might be errors in your credit history. For example, late payments, foreclosures, charge-offs or bankruptcies may appear.
The best thing to do is to request a copy of your report and evaluate the information to ensure that the outstanding payments that appear to have not been paid are simply errors. If so, you can file a claim with the agency and get them removed.
Another way to improve your score is to start making all your payments on time; it is also a good solution to pay the outstanding debts in full. If you want to improve your score, start by avoiding applying for new loans or retail cards.
Try to get current before acquiring a new service to prevent the report review from temporarily affecting your score.