Whether we like it or not, our credit scores determine how much we can borrow and at what interest rate. This can make a difference in our financial lives and even our future employment opportunities.
When a person’s credit score falls below a certain level, they may find it harder to qualify for loans and credit cards. This is because lenders consider credit scores in the 580 to 669 range as fair borrowers.
Overview of a 659 Credit Score
Your credit score is one of the most important indicators of your fiscal responsibility. It helps future lenders and landlords determine if you are an eligible applicant for a new mortgage, loan or credit card.
Your 659 credit score is based on 5 primary factors that affect your overall credit profile. These are your credit history, revolving accounts, new credit, types of credit and debt-to-income ratio.
The most important factor that counts towards your credit score is your debt-management habits. The more you use your credit responsibly and make timely payments, the higher your 659 credit score will be.
Your credit history is a record of your revolving accounts, including credit cards and loan installments. It is also a record of your credit utilization rate, or the amount of available credit you are using. The higher your credit utilization rate, the lower your credit score will be.
Credit Card Options with a 659 Credit Score
Credit cards are an excellent way to build a solid credit history. A good card will give you the opportunity to use a credit line and make payments on time, which will increase your credit score over time.
There are several options available to consumers with a 659 credit score. The most common is an unsecured credit card, but secured cards are also available.
Secured cards require a security deposit to secure a credit limit, but they work just like unsecured cards. This deposit is reported to the major credit bureaus and will help you build a credit history.
New credit is another factor that impacts your credit score, so if you are an NTC (new to credit) user, it’s important to pay your bills on time. This will not only help your credit score, but it can also help you get better rates and terms.
Auto Loans with a 659 Credit Score
A 659 credit score can be a great place to start when shopping for an auto loan. This credit score is considered fair, which means you may have access to an auto loan with terms ranging from a few years up to 85 months.
But be aware: interest rates on auto loans can vary depending on your credit score, income and debt. While a low credit score may limit your borrowing options, you can improve your chances of getting approved by making payments on time and improving your credit score over time.
You should also consider financing your new car through a manufacturer’s dealership instead of a traditional lender. This type of financing is gaining popularity among new car buyers, and it offers baseline APRs as low as 0.9%. But note that these loans aren’t for everyone and can be difficult to get.
Personal Loan Options with a 659 Credit Score
Personal loans are great options for borrowers who want to consolidate debt, pay for unplanned expenses, or make a large purchase. They can also help you build a credit history, but they’re not always easy to qualify for.
If you have a 659 credit score, you may be able to find a personal loan that meets your needs. However, it’s important to understand how your credit is impacted and how much you can afford to borrow before you decide to get one.
You should look for lenders that offer a variety of repayment terms, including short and long-term installments. Also, you’ll want to choose a lender that can fund your loan quickly. Many personal loans can be approved and funded in as little as a day.
Mortgages with a 659 Credit Score
Mortgage options with a 659 credit score are a little less varied than with higher scores, but it’s not impossible to find a home loan that works for your situation. There are conventional loans, FHA loans, VA loans, USDA loans, and jumbo loans available.
However, it’s important to remember that your credit score is only one component of your mortgage approval. Other things must be in place to ensure that you can make the monthly payments.
Having a credit score lower than 660 can significantly increase your interest rates, sometimes as much as 2-4% more expensive than the best rates on the market. This is particularly true if you have bad debts or a history of bankruptcy, foreclosure, or short sale.