Having a 666 credit score is not the best. It is not because of the superstitions surrounding this number but because the chances of getting good credit or loan options are lower than higher scores.
If this is your situation, it is time to look for the best alternatives to improve your score and access better benefits. Before starting the application for a new credit card, car loan, or mortgage, it is advisable to improve it.
Is it a good credit score of 666?
Before the corresponding financial entities, this is a “fair” credit score. But it remains below the average, which is positioned at 704 by FICO. According to VantageScore, the average score should stay at 675.
When a consumer has this credit score, it won’t be easy to access loans and interest rates adjusted to their needs. Banks and lenders are high-risk users, and although you can get some credit, you will have to adjust to higher interest rates.
For example, you can have an average APR of 34.71% when you acquire a personal loan, and your credit score is 666.
Reasons for having a credit score of 666
One of the most common reasons is cultivating a debt for a long time and having outstanding payments because it communicates with credit companies. The debt is added to the history, which lowers the credit score.
Commonly, it is because the user has different credit cards and the limit has been exceeded on most of them, or they have not been paid on the corresponding dates for the debt to go down. Regardless of the reasons, it is a situation that will remain in the credit history for a long time.
On the other hand, it can also be caused by mistakes in history that have caused the score to go down. That is why it is usually advisable to review your credit history to ensure everything remains in order.
What can you do to improve your score?
If you have a low score, there are still some alternatives to improve and increase the score to adjust it to the users’ needs. There are different options, among which are:
Start by repairing your credit
If the situation is caused due to late payments, the solution is to catch up with all of them. Depending on the amounts owed, it can be complicated, but it is not impossible.
Start by paying small amounts.
It’s also a great solution to stop using credit if you realize you can’t pay on schedule. That will only add more debt and make it harder to improve your credit history.
Some credit cards can also help improve credit. However, a thorough evaluation must determine if it is a good choice to apply for them and use them as a tool.
Review history and request removal of errors
Many users have experienced problems with their credit history because previous debts have not been eliminated or outstanding accounts that did not correspond to them have appeared. It is necessary to make a complaint from the beginning to highlight the problem and resolve it as soon as possible.
The credit institutions will make an investigation that may take a few days to determine that it was a mistake and must eliminate the charges and improve the score.
Can I apply for loans or credit?
There are still institutions that offer services for customers with fair scores. However, as mentioned before, they tend to offer higher interest rates and APRs that are not as beneficial. It is important to know all these facts before qualifying for a loan or credit.
Professionals recommend improving your score before accessing a new loan to avoid continuing to accumulate debts since, in the end, you will have greater inconveniences when faced with interest rates that are too high.