660 Credit Score Could Be Better
It’s that time again, when we take a hard look at a specific credit score to determine where it lies on the ever important credit score scale.
After all, simply knowing your credit score isn’t enough these days. You need to know what it means and why to truly understand how creditors view you.
Today we’ll dissect the “660 credit score,” which tends to be a pretty common score for a lot of folks.
We always start with the appropriate credit scoring scale when looking at a certain credit score to accurately gauge it.
660 Fico Score is 50 Points Below Average
The most common credit score available today is the Fico score, which ranges from 300-850. So a score of 660 would land you closer to the top than the bottom of the range, but still a couple hundred points shy of perfection.
While you don’t need to have the highest credit score possible, you could certainly improve your score if it’s this low.
The average credit score for Fico is around 710, so you’d be about 50 points below average if you had a 660 Fico score.
Assuming this is the case, you’d have a harder time getting approved for credit cards, auto leases, and mortgages, and certainly wouldn’t receive the best terms if you were approved.
In short, a 660 Fico score could be costing you money, each and every month!
If your Fico score is 660, you likely have a few things holding you back, such as high balances on existing lines of credit, and perhaps a minor late payment here or there.
You could even have something like an erroneous medical collection holding you back, so it’d be wise to get a hold of your credit report to determine what the issue is.
It could just be that you have limited credit history, and what you do have isn’t all that spectacular.
There’s no cause for alarm here, but you should definitely work on getting your credit score back above average.
660 VantageScore is Pretty Dismal
If we’re talking about the lesser used VantageScore credit score, which ranges from 501-990, a 660 would land you right smack in the middle of their “D” letter credit grade bucket.
Obviously a “D” is never the letter to shoot for, especially given the fact that it’s roughly 100 points below the average VantageScore.
If you’ve got a 660 VantageScore, there’s a good chance you’ve got some fairly major derogatory activity on your credit report, such as multiple late payments, and perhaps a collection or a charge-off.
You could even have something worse, such as a late mortgage payment or a foreclosure.
In any case, it is recommended that you scour your credit report to determine what the problem is, and take appropriate action to reverse course.
A credit score this low will certainly lead to higher interest rates on any loans or credit cards you apply for, and could result in outright denial.
It may also be worth considering a credit score monitoring program to get back on track, as you’ll likely be sending significant money down the drain with a score at this level.
It’s not the end of the world, but you should recognize that you can do a lot better
Read more: How to raise your credit score.
(photo: Incase)