Credit scores are calculated on a scale of 300 to 850. A credit score of 670 is considered Good by most lenders, but there is always room for improvement. It’s a good idea to raise your score before applying for a loan, so that you can qualify for the best interest rates.
Your credit score reflects your overall debt and the types of credit you have. The FICO (r) Score prefers revolving credit over installment loans, so it is important to have a good mix of these two types of credit. Your credit mix accounts for about 10% of your overall score. In terms of loans, 44% of people with a 670 FICO (r) score have auto loans and 27% have mortgage loans.
The age of your credit accounts plays an important role in your credit score. The older your credit history is, the higher your credit score will be. Also, keep in mind that each new application for credit will trigger a hard inquiry, which can knock up to five points off your score. As such, it’s important to avoid making new applications for credit cards if you have a 670 credit score.
One way to boost your credit score is to avoid making late payments. You can use services such as Experian Boost to add regular payments to your credit report. You can also use a third-party service to automatically add your monthly rental payments to your credit reports. Late payments can lower your credit score by dozens of points.
Your credit score can affect your ability to get the best rates on loans. While you should keep in mind that a 670 credit score is considered “good” by most lenders, it’s not enough to qualify you for the lowest rates available. It’s important to shop around for multiple loan offers.
Although 670 is not as high as it used to be, it is still within a range of “Good.” Many lenders view people with a Good credit score as a good risk borrowers and offer decent interest rates for unsecured credit cards, balance-transfer cards, and even mortgages. Additionally, a higher credit score can result in lower car insurance rates. Finally, landlords often use a credit score to screen prospective tenants.
Having a credit score of 670 is a good idea if you want to get an auto loan. Even though it may be tempting to take on a loan with a low interest rate, it is still important to monitor your credit carefully. Even a small decrease in your score can cost you nearly $30 per month and over $1500 over the life of the loan.
Bob Jones