Is 664 A Good Credit Score for Loans?
Is 664 A Good Credit Score for Loans? A credit score of 664 is generally considered fair and is very close to the good credit score range of 670-739. Many people are often curious about the credit score system and what specific scores mean for loan eligibility. However, understanding the implications of a 664 credit score can be confusing, leading many to seek information online.
Understanding the FICO Score Range
The FICO score range, which is most commonly used by lenders and financial institutions to gauge creditworthiness, spans from 300 to 850. Here’s how the scores are categorized:
Learn More:Â I664S 665 A GOOD CREDIT SCORE?: HOW TO IMPROVE IT IN 2024
| Credit Score | Credit Ratings | % of Population |
|---|---|---|
| 300-597 | Poor | 16% |
| 580-669 | Fair | 17% |
| 670-739 | Good | 21% |
| 740-799 | Very Good | 25% |
| 800-850 | Exceptional | 21% |
The average credit score in America is 714. With a 664 credit score, you fall into the fair category, which can impact your loan and credit card options.
Credit Card and Loan Options for a 664 Credit Score
Credit Card Options
With a 664 credit score, obtaining a credit card may require some additional steps. Many lenders might ask for a security deposit. This is known as a secured credit card. The deposit typically ranges from $500 to $1,000. Another option is to apply for a starter credit card from a credit union, which often has lower credit limits and higher interest rates.
To improve your credit score, it’s essential to make timely payments and keep your balance below 30% of your credit limit.
Personal Loan Options
Securing a personal loan with a 664 credit score is possible but challenging. Lenders who work with borrowers in this range often charge high-interest rates. To avoid long-term debt problems, it’s advisable to consider a credit builder loan. These loans place the borrowed money into a savings account, which you can access after paying off the loan, plus any accrued interest.
Home Equity Loan Options
For conventional mortgage lenders, the minimum required credit score is around 620. If you’re considering an FHA loan, you need a minimum FICO score of 500 for a 10% down payment or a score of 580 for a 3.5% down payment.
Auto Loan Options
Most auto lenders prefer not to lend to individuals with a 664 credit score. Even if you secure an auto loan, it will likely come with a high-interest rate. It’s better to focus on improving your credit score before seeking an auto loan.
How to Improve a 664 Credit Score
A fair credit score indicates a history of credit mistakes, such as late payments, charge-offs, foreclosures, or bankruptcies. Here are steps to improve your credit score:
1. Dispute Negative Accounts
Obtain your credit report from Equifax, Experian, and TransUnion, and dispute any inaccuracies.
2. Take Out a Credit Builder Loan
These loans help individuals with poor credit rebuild their score by placing the borrowed money in a savings account until the loan is paid off.
3. Get a Secured Credit Card
With a secured credit card, you provide a deposit that acts as collateral, helping to build your credit.
4. Become an Authorized User
Being added as an authorized user on someone else’s credit card can boost your credit score quickly. However provided the primary cardholder has a good credit history.
5. Build Credit by Paying Rent
Rent reporting services can add your rent payments to your credit report for a small fee. However, which helps improve your score.
Therefore, While a 664 credit score is considered fair, it poses some challenges when applying for loans and credit cards. However, By understanding your options and taking steps to improve your credit score, you can enhance your financial standing and increase your chances of securing better loan terms in the future.