A credit score is a key factor that lenders and landlords look at when making lending decisions. A low score could cost you money in the long run, including a higher interest rate.
Your credit score is a score that tells lenders how likely you are to make your payments on time, which helps them determine whether they will lend you money or not. A credit score below 700 is generally considered to be bad.
Overview of a 662 Credit Score
A 662 credit score is a middle-of-the-road score that falls between the “Fair” and “Good” ranges. It doesn’t mean you can’t get a loan or a credit card, but it’s likely to have more difficulty than someone with a higher score.
Credit scores are based on how well you’ve handled your debt in the past, as recorded in your credit report. Good habits tend to promote high scores, while poor or erratic behavior can bring down your score.
Consumers with credit scores in the Fair range often have late payments and collections accounts on their reports, which can indicate a creditor is giving up trying to recover an outstanding balance. These types of negative items are typically harder to dispute and can have a big impact on your score.
Credit Card Options with a 662 Credit Score
If you have a 662 credit score, you should be able to find a variety of credit card options. Many cards are available with a low annual fee or no fee at all, so start looking for these.
If your credit history is relatively clean, you may be able to obtain a secured credit card with a security deposit. These credit cards work just like unsecured ones, but they report your payments to the credit bureaus and can help build or rebuild your credit score.
Alternatively, you can use a debit card as your main form of credit. Debit cards do not affect your credit score, but they are a valuable tool for maintaining a budget and managing expenses.
Auto Loans with a 662 Credit Score
The auto loan options available to borrowers with a 662 credit score vary. Some borrowers may be eligible for a low interest rate, while others are likely to pay more than their competitors with a higher credit score.
According to Experian data, near-prime borrowers had an average car loan rate of 6.07% on new vehicle financing and 9.80% on used car financing in Q4 2021.
Borrowers with credit scores in this range can also qualify for a car lease. However, lenders are more hesitant to approve such loans.
Lenders are interested in five major factors when evaluating a borrower’s credit score: payment history, amount of outstanding debt, length of credit history, types of credit and new credit. These factors are reflected in both the FICO Auto Score and VantageScore, two credit scoring models developed by the three major credit bureaus.
Personal Loan Options with a 662 Credit Score
Your credit score is one of the biggest factors determining your loan options, so you’ll want to make sure you’re taking steps to build or repair it. A little bit of improvement could help you secure lower rates and better loan terms.
Personal loans are a good way to finance large purchases or consolidate debt, but be sure to compare interest rates and fees before you apply for one. You should also consider the repayment term to keep payments affordable and clear the debt as quickly as possible.
If you have a 662 credit score, there are a few options available to you. First, you can try to improve your score to move it into the “good” or “excellent” credit range. This will make you eligible for a wider range of loans and rates, and may help you save money over time.
Mortgages with a 662 Credit Score
When it comes to mortgages, borrowers with a 662 credit score can choose from a variety of options. These include conventional loans, FHA loans, and VA loans.
You can also consider non-prime loans if you’ve experienced a major credit issue in the past. These types of loans may offer lower interest rates, but you’ll need to have a good income and be prepared to make a large down payment.
While mortgage lenders generally prefer borrowers with good credit, borrowers with a 662 credit report can still get approved. They must meet other requirements, such as having 2 years of employment and providing the necessary income documentation (such as tax returns and pay stubs).