What is a bad credit score? Well, there are several credit score ranges. For instance, 780–850 may be considered “excellent” while 720–780 may be seen as “good. However, a score that falls between 300, the lowest possible, and 660 is considered to be in the “poor” range.
A poor or bad credit score may serve as inspiration to manage your credit better. You may need to raise your credit score before finding approval for new lines of credit. Luckily, your credit rating isn’t a static number or singular situation. Inspired to work toward raising your credit score? This post discusses the implications of having bad credit on you and provides resources to help you raise it.
A common question among those who fall into the category of “fair credit” is: “Is 660 a good credit score?” Even though a 660 credit score is below the desired “good” or “excellent” range, it’s still not reason to give up. It serves as a springboard and a basis for developing a stronger and more financially advantageous credit profile.
Let’s dive deeper into the world of 660 credit scores and explore what it means for you
Understanding the 660 Credit Score Landscape
The “fair” credit range, which includes scores between 580 and 669, is where a 660 credit score fits in. Although your score suggests that you’re not a high-risk borrower, you’re also not quite regarded as a prime borrower. Even though lenders may be a little more wary of you, you can still choose from a wide range of financial services and products.
Here’s a quick breakdown of the credit score ranges:
- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very good
- 800-850: Exceptional
While a 660 credit score might not open the doors to the most favorable loan terms and interest rates, it’s far from a dead end. With some strategic planning and responsible credit management, you can steadily climb the credit score ladder and unlock better financial opportunities.
What Does a 660 Credit Score Mean for You?
A 660 credit score tells lenders that you’re a moderate risk. You’ve likely experienced some credit challenges in the past, such as late payments or high credit utilization. However, you’re demonstrating a willingness to manage your credit responsibly, and lenders are taking notice.
Here are some potential implications of a 660 credit score:
- Higher interest rates on loans and credit cards. Lenders may charge you higher interest rates to compensate for the perceived risk of lending to you.
- Limited access to certain financial products. Some lenders may not offer you certain products, such as low-interest mortgages or credit cards with generous rewards programs.
- Higher security deposits for utilities and rentals. Landlords and utility companies may require higher security deposits from you due to your credit score.
Don’t let these potential drawbacks discourage you. A 660 credit score is a starting point, not a destination. Through proactive measures to enhance your credit score, you can surmount these obstacles and open the door to a more promising financial future.
How to Improve Your 660 Credit Score
The good news is that you have the power to improve your 660 credit score. By adopting responsible credit habits and implementing strategic credit-building techniques, you can steadily climb the credit score ladder and unlock better financial opportunities.
Here are some actionable steps you can take to improve your credit score:
- Pay your bills on time, every time. This is the single most important factor in your credit score. Set up automatic payments or reminders to ensure you never miss a payment.
- Keep your credit utilization low. Aim to keep your credit card balances below 30% of your available credit limit. This shows lenders that you’re not overextending yourself and that you can manage credit responsibly.
- Become an authorized user on a responsible credit card. This allows you to benefit from the positive payment history of the primary cardholder and build your own credit history.
- Dispute any errors on your credit report. Mistakes happen, and sometimes errors can negatively impact your credit score. Review your credit report regularly and dispute any inaccuracies you find.
- Consider a secured credit card. Secured credit cards require a security deposit, which acts as your credit limit. Using a secured card responsibly can help you build positive credit history.
- Seek professional help if needed. If you’re struggling to manage your credit, consider consulting a credit counselor or financial advisor. They can provide guidance and support to help you get back on track.
Remember, improving your credit score takes time and effort. Don’t get discouraged if you don’t see immediate results. Stay consistent with your efforts, and you’ll gradually see your credit score improve.
Frequently Asked Questions About 660 Credit Scores
Here are some frequently asked questions about 660 credit scores:
- Is 660 a good credit score for a mortgage? It depends on the lender and the specific mortgage program. Some lenders may require a higher credit score for a mortgage, while others may accept a 660 score with a higher interest rate.
- Is 660 a good credit score for a car loan? Yes, a 660 credit score is generally considered acceptable for a car loan. However, you may have to pay a higher interest rate than someone with a higher credit score.
- How long does it take to improve a 660 credit score? It depends on several factors, including your credit history, the severity of past negative items, and your efforts to improve your credit. However, with consistent effort, you can see significant improvements within 6-12 months.
Additional Resources for Improving Your Credit Score
Here are some additional resources that can help you improve your credit score:
- Experian Credit Education Center: https://www.experian.com/blogs/ask-experian/
- Credit Karma Credit Score Simulator: https://www.creditkarma.com/credit-scores/simulator
- Federal Trade Commission (FTC) Consumer Information: https://consumer.ftc.gov/topics/credit-identity-theft
- National Foundation for Credit Counseling (NFCC): https://www.nfcc.org/
Remember, improving your credit score is an investment in your financial future. You can get more financial freedom, cheaper interest rates, and better financial opportunities by being proactive in establishing a solid credit history.
What is a bad credit score?
VantageScore® calculates the most commonly used consumer credit scores. Within the VantageScore model, a credit score between 300 and 660 may fall into three separate categories:
- Very Poor: 300–499
- Poor: 500–600
- Fair: 601–660
FICO® is another major credit scoring agency. Within the FICO model, a credit score between 300 and 660 may fall into two separate categories:
- Poor: 300–579
- Fair: 500–669
These two major credit agencies use similar credit score ranges but calibrate them somewhat differently. In all cases, credit score helps credit lenders, such as banks and landlords, assess potential borrowers. Using a representative number, this score serves as a tool to assess your previous credit behavior, including how you paid your bills.
Who decides if I have a bad credit score?
FICO, or the Fair Isaac Corporation, works as a data analytics company. It sells its distinct credit scoring services to lenders. You can also access your FICO score through the major credit bureaus: Equifax®, Experian™ and TransUnion®.
Up until 2006, FICO was the only option available, so the three major credit bureaus collaborated to create VantageScore. It uses the same credit reporting data FICO does to calculate credit scores. But VantageScore prioritizes factors a bit differently. This means you may have different credit score results from each of these agencies.