A credit score of 674 is a median credit score. It’s generally considered good and will help you qualify for mortgage, auto, personal loans, and more.
However, like all credit scores, there’s more to it than meets the eye. Read on to learn more about what it means and how you can use it to your advantage.
Overview of a 674 Credit Score
Your credit score is a three-digit number that lenders, financial institutions and banks use to evaluate your likelihood of paying back your loans. The lower your credit score, the higher your risk of getting into debt or having trouble finding a job.
Generally, scores from 670 to 739 are considered to be Good credit. These borrowers have the best chance of qualifying for a range of credit products, including a large variety of loans and most credit cards.
However, those with scores in this range may not qualify for a lender’s best interest rates or loan terms. Instead, they’re more likely to be categorized as subprime borrowers, who typically pay higher APRs and interest rates than prime borrowers do.
Those with a 674 credit score can qualify for most mortgages, but they’ll need to meet other qualifications, like a down payment and a consistent employment history. We can help match you with a lender that offers conventional loans in your area.
Credit Card Options with a 674 Credit Score
A 674 credit score offers access to a variety of different types of credit cards. However, your credit score is only one part of your overall financial picture and it’s important to focus on improving your other factors to raise your credit score to the maximum potential.
A credit score is a measurement of your credit risk, and it reflects your total debt and how you handle your credit accounts. It also includes your credit mix, which is the balance of revolving and installment credit in your account portfolio.
Your credit mix is the largest primary factor that counts toward your credit score, and it largely reflects how responsible you are with your revolving accounts. For example, if you have several credit cards and you pay them off in full each month, it will have a positive impact on your score.
Auto Loans with a 674 Credit Score
When it comes to auto loans, your credit score plays a big role in the loan approval process. Lenders view your credit as a sign of financial responsibility and raise interest rates on loans with bad credit as a way to protect themselves from potential losses.
However, there are options available for those with a 674 credit score. These include car loans and other forms of secured financing.
While the exact terms of your loan will depend on your particular lender, you should be able to find one with an affordable interest rate and reasonable loan terms.
A 674 credit score is considered to be in the “fair” range. While it’s still possible to be approved for a car loan or credit card with fair credit, you may find yourself paying high fees and interest rates, depending on the lender.
Personal Loan Options with a 674 Credit Score
A 674 credit score may be too low to qualify for a conventional mortgage, but there are plenty of personal loan options available for those with this score. These loans often come with lower interest rates than credit cards, which makes it easier for borrowers to make monthly payments on time and keep their credit score intact.
Depending on the lender, personal loan terms may range from two to seven years. A longer term may help you clear your debt faster and save money on interest, but the monthly payment could be higher.
One option for a borrower with this score is to use a personal loan to consolidate revolving debt, which can improve your credit utilization ratio and raise your credit score. However, it’s important to carefully consider your financial habits and circumstances before taking on debt.
Mortgages with a 674 Credit Score
Mortgages are a common way to finance the purchase of a home. They are available from both conventional lenders and non-prime lenders, which often offer loans to borrowers with credit scores in the lower 700s.
Your 674 credit score should put you in a good position to qualify for a mortgage, especially with respect to conforming mortgages (conventional loans that meet the standards of Fannie Mae or Freddie Mac) and FHA loans with low down payments. However, you’ll likely want to shop around for the best mortgage rates, since interest rates can vary widely among lenders even for borrowers with similar credit.
You can also raise your credit score to a higher level, which will enhance your chances of getting better loan terms and interest rates. A few quick months of minimal credit repair can make a huge difference in your chances of getting the mortgage that you deserve at a competitive rate.