Credit scores, such as the FICO Score, are a snapshot of your debt-management habits. They reflect whether you pay your bills on time and how responsibly you use your credit.
As you may know, a lower credit score reflects poor or erratic behaviours. However, if you are serious about improving your credit rating, there are many steps you can take.
Overview of a 664 Credit Score
A credit score of 664 is in the fair credit range. Lenders don’t normally accept borrowers with this credit score, which means that you’ll have to work hard to secure a mortgage, auto loan or personal loan.
If you want to raise your credit score, there are several steps you can take to improve it. These include evaluating your credit report and disputing any negative items that are keeping it from achieving its full potential.
With a little work, you can reach a good credit score range of 670-739, which will open up more borrowing options and allow you to save more money over time. Boosting your credit will also help you avoid high interest rates and fees.
Credit Card Options with a 664 Credit Score
If you have a 664 credit score, you’ll want to consider one of the many cards designed for those with fair or average credit (generally, from 580 to 669). These cards are geared towards consumers who don’t need the latest and greatest credit card features.
These cards offer a good chance of approval, report payments to all three major credit bureaus and have reasonable terms. They may also help you improve your credit score, as long as you pay your bill on time.
A 664 credit score is considered a ‘Fair’ credit score, which means you may have a difficult time qualifying for loans. Lenders generally don’t work with borrowers with scores in this range because they have a higher risk of defaulting on their debt.
Auto Loans with a 664 Credit Score
If you have a 664 credit score, it is possible to secure an auto loan. However, the best rates are available to those with a credit score in the 760-plus range.
Those with an excellent credit score typically pay 3.4% in interest for 60-month new car loans, while those with low credit scores are charged 14.8%.
To get an auto loan with a low credit score, you’ll need a cosigner and a high down payment. You’ll also need to make sure you have the income to cover your monthly payments and have a solid credit history.
A higher credit score will also help you avoid some of the most expensive mistakes that can hurt your finances. For example, if you purchase a vehicle with a low credit score and don’t have the funds to pay it off, you can end up paying more than $3000 in interest over the life of the loan.
Personal Loan Options with a 664 Credit Score
If you have a 664 credit score, you should be able to find a personal loan with reasonable rates and terms. However, you’ll need to do your research and compare lenders based on their APRs, fees, loan amounts and repayment options.
A personal loan can be a great way to consolidate debts or make other large purchases. It typically doesn’t require any collateral and can be funded within a few days.
But before you apply, check your credit report and make sure there aren’t any delinquencies or other issues that may impact your ability to get a loan. If you’re worried about your credit score, consider applying with a co-signer or repairing your credit first.
Your credit score makes up 30 percent of your FICO Score, so paying off existing debts and making payments on time can help improve your score. Also, lowering your credit utilization rate shows more responsible use of credit and can lower your interest costs.
Mortgages with a 664 Credit Score
If you have a 664 credit score, you can qualify for several mortgage programs. These include conventional loans, FHA loans, VA loans, and USDA loans.
However, your interest rate will vary based on your qualifications. Also, you’ll likely need to make a larger down payment on the loan than someone with a higher credit score.
Getting a home loan with a 664 credit score is possible, but it’s going to be expensive and difficult. A mortgage lender will want to see that you’ve consistently made on-time payments over the past few years, and they won’t be able to do this until you have a good credit history.