A credit score of 666 is generally considered to be “fair.” This is a lower-than-average FICO Score, which means you may have a few challenges borrowing money.
A lot of people have scores in this range, but it’s important to know that lenders may see you as a risky borrower and charge high fees and interest rates. Increasing your score to the “good” range (scores 670-739) can help you get better credit options, cheaper interest rates and fewer fees.
Overview of a 666 Credit Score
A 666 credit score is considered a fair credit score, and it doesn’t mean you can’t get a loan. But it does make lenders consider you a high-risk borrower and could impact your interest rates and fees.
A low 666 credit score can be frustrating, but it’s not impossible to repair. By analyzing your credit report and disputing negative items, you can start the path to a higher credit score.
70% of consumers have scores higher than yours, so there’s a lot of room to improve your score and gain access to better borrowing terms. Plus, your 666 credit score is very close to the Good credit score range of 670-739, meaning you have a lot of potential for growth.
Credit Card Options with a 666 Credit Score
If you have a 666 credit score, there are a few different credit card options for you. While it’s unlikely that you’ll be approved for a traditional credit card, you may still qualify for an unsecured credit card with low interest rates and reasonable benefits.
As with most credit cards, a low utilization rate is the key to keeping your 666 credit score healthy. Try to keep your revolving credit usage below 30% to avoid having it affect your score negatively.
Moreover, you should pay your bills on time and settle any past-due payments. These actions can help improve your credit score over time.
Auto Loans with a 666 Credit Score
If you’re looking for an auto loan, your credit score is a major factor. Those with higher credit scores are more likely to be approved, while those with lower ones have a harder time.
You can get an auto loan with a credit score of 666, but you’ll probably pay more in interest than borrowers with better credit. Lenders group borrowers into five tiers of credit: prime, super prime, nonprime, subprime and deep subprime.
A credit score of 700 or higher on the 300-to-850 scale is considered prime. That means lenders don’t have to price a lot of risk into their rates.
Personal Loan Options with a 666 Credit Score
The good news is that even a 666 credit score doesn’t have to be the stumbling block to your financial goals. There are many ways to improve your score and borrowers who make the effort will find that they are rewarded with more affordable interest rates, lower monthly payments and more opportunities to take out the loans of their dreams.
One of the most effective methods for improving your credit score is to pay off old debt quickly and avoid racking up new balances in the first place. Another useful tip is to keep your credit utilization ratio (how much of your available credit you are using) low. This can be done by reducing the number of accounts you have and only putting a small percentage of your total credit card limit on each account.
Mortgages with a 666 Credit Score
The good news is that you can qualify for a mortgage with a 666 credit score. However, you will have to meet certain requirements such as a minimum debt-to-income ratio and making a down payment.
In addition, the interest rates and loan terms may not be as attractive as they would be for borrowers with higher credit scores. This is why you should consider repairing your credit before applying for a mortgage.
With 70% of consumers in the United States having FICO(r) Scores higher than yours, you have a lot of room to improve. Your score is near the Good credit score range of 670-739, and with some work you can probably reach that score and be offered a much wider variety of credit and loans at lower interest rates.