Learn what it means to have a FICO of 667. Understand how it's calculated, what loans you can obtain, and how to better your FICO score
A credit score is needed for you to be able to get a loan or credit. The reason behind this is because it will help financial institutions to determine your creditworthiness. They will also see every loan that you made and the payment history that you have. Find out more about it by reading the information below.
Credit scores are calculated based on the proprietary algorithm. This will include the person's outstanding debts, payment history, and the length of the individual's credit history.
Credit scores can range from 300 to 850. The higher the individual's score, the lower the risk. People who have lower credit scores are considered high risk, which will make lending companies ask for more requirements.
About Fico scores
Fair Isaac Corporation is the one who established FICO, and it is one of the most commonly used credit scoring systems today.
According to FICO, 90% of the most reputable and respected lenders today are making decisions according to this kind of credit scoring system. Get to know more about Fico scores by reading the information below.
How FICO is calculated
Different grade scales are used around the world, but the most commonly used system is the FICO score. FICO stands for Fair Isaac Corporation, which is responsible for calculating your FICO score.
FICO has not declared any detailed explanation on how the FICO score is calculated. However, some of the important variables considered in determining your credit score are as follows:
First and foremost, your payments are considered in calculating your FICO score. It comprises for almost 35 % of your FICO score. Next, 30 % of the score is calculated by your debts. Your length of credits accounts for next 15 %, followed by the type of credit used and some inquiries made for credit hold 10 % value each in FICO scores.
Explanation of FICO ranges
If you are wondering about the explanation of FICO ranges, then reading the information below will help.
Having knowledge about the credit score is essential as this can give a huge impact on your future. Knowing your credit score will help you know the credit worthiness that you have. Here are the explanation of FICO ranges.
579 and Below
579 and below means you have a poor FICO. Lenders may require a certain amount of deposit before granting your application.
670 to 739
670 to 739 is a good FICO; wherein borrowers are considered as acceptable.
740 to 799
740 to 799 is a very good FICO; wherein borrowers can expect better interest rates.
800 and Above
800 and above is an exceptional FICO and people with this score are quickly approved of their application.
What does it mean to have a FICO of 667
Stay away from activities that will reduce your credit rating and always focus on positive side of FICO rating above 667. An ideal approach to do this is keeping on taking a shot at developing your FICO assessment through making timely and recommended installments while working hard to reduce your credit burden.
667 is still not good credit for you
In the United States, people with a FICO rating of 680 are viewed as having a credit score for deciding the soundness of a national FICO rating. Subsequently, if the average score is roughly 680, those below this figure including 667 have no motivation to apply for diverse sorts of credits, loans, and mortgages. At 667, you're not yet qualified to claim homes and automotive loans straight from banks. However, the best news with a FICO rating of 667 is that it is not difficult to change it from 667 to over. For more serious people, three months are enough to go above this figure.
You can get a fairly cheaper loan with 667
With a FICO rating of 667, you have no opportunity for relaxing even if you're on the most secure side of money-related books. The best thing you have to do to keep this rating going up is to reduce loans and borrowing. You want that health score associated with profitability, and therefore you need to sacrifice to some extent. Subsequently, other credit monitoring strategies such as reviewing your loan repayment report at least four times each year will tell you what you're supposed to do next with credit history.
Assess your financial status regularly
Financials are mind boggling whether they are for people or organizations. Along these lines, understand how you can explore your money related reports. Figure out where your activities turned out poorly and start amending your mistakes. While a few mistakes might be covered up or assumed, it will be exceptionally humiliating when moneylenders discover these blunders on their own. Particularly, you're they are screening your credit history when you're looking for the loans. These days, you can take a moment and screen your credit before your potential lenders tell you that you need a few months to repair your credit.
Credit cards with a FICO of 667
The range of credit cards for people with a FICO of 667 is wide. That is why knowing some of the best ones are will help you decide on what to get.
There are a lot of credit cards today, but you need to make sure that you are applying for something that matches your FICO. If you are looking for a credit card with great rewards, then reading the information below will help.
Valero Credit Card
Valero credit card can help you save up to US cents 8/gallon on fuel. They also give a credit limit that is sensible, which is ideal for you to be able to manage your budget. This card has no annual fee.
Wells Fargo Platinum Visa
Wells Fargo Platinum offers low APR for the first 15 months. They also offer tools that can help you in budgeting and manage your spending habits. Wells card has no annual fee.
Car loans with a FICO of 667
Getting car loans with a FICO of 667 can't be that challenging since this is known as a fair score.
Some people think that having a FICO of 667 can be challenging, but the truth is it isn't. The reason behind this is because most financing companies today are already granting loans to people who have a fair to good score.
Capital One is one of the financing companies who are approving car loans with a FICO of 667. They offer loans for new vehicles and used ones. Their interest rate ranges from 2.49% to 3.39% depending on your chosen term.
Credit Unions
Another company where you can get a car loan is through Credit Unions. They are offering car loans to people no matter what their FICO are. Their interest rates differ as well, so it would be best to negotiate with them at the most reasonable rate that you can get.
Mortgages with a FICO of 667
A score of 667 falls in the average to a good category on the grade scale. You have a number of options to choose your loan plan.
You can start with the banks in your area. Go to them and ask for their loan offers and discounts that they are offering. Select the one that suits your income or your needs the best.
You can also try with the government sponsored loans. The government loans are easier to get and charge lower interest rate costs compared to other lending institutions.
You should also look for ways to put your total over 700. By doing that, you may be able to get your hands on the best loan offers available in the market.
Home Loans with a FICO of 667
With this score, you will be required to deposit a high down payment for your home loan. The interest rates will be better than the people that have lower FICO score, but it will be lower than those who have excellent FICO scores.
You can apply for Government sponsored home loan facilities. In 2016, Federal Housing Administration loans are approved for FICO scores of over 580. Therefore, your first loan application should be to FHA-approved lenders. With FHA, you will be required to deposit a minimum down payment of 3.5 %.
If you want to get a home loan from banks, you should be targeting the local, smaller banks that might charge slightly higher interest rates but there is a greater possibility that they will accept your loan approval.
Personal Loans with a FICO of 667
You can try some online credit service providers for your personal loan. Most of the online services consider potential clients with FICO scores of over 600, with some going as low as 550. Their terms and rates re variable from one service to another. They provide near competitive interest rates.
Avant
Your personal loan request can be approved within one business day as long s you have met all their qualifications. You stand to enjoy an interest rate as low 9.95% and a repayment period of up to 60 months. You don't need to worry about the interest rate and terms since they are fixed.
Prosper
The Prosper credit service displays your request for a loan as a listing. Potential investors go through the listing to identify loans that they can provide. An investor hen makes the funds available to you directly.
Karrot
You are eligible for loan amounts up to $35,000. The interest rate charged to you is variable based on your credit history. The only downside of this service is that they charge an origination fee of 1% to 4.75%.
Things you can do to improve your FICO of 667
With a good FICO score, you can walk into any financial institution and obtain credit with a low annual percentage rate. That is why improving your credit rating is a necessity even as you use loan facilities. Increasing your FICO score requires financial discipline over a long time. That shouldn't stop you from getting a loan as long as you legitimate effort in improving your rating. Some credit improvement techniques are long-term while others are short-term.
Pay your bills on time
Your FICO score is affected by your payment history. It contributes to 35% of your rating hence the need to ensure you make timely payments of your dues. Paying above the set monthly premium is an added advantage because you pay over a short time. Late installments have an adverse impact on your FICO score.
Go through your report for errors
Credit reference bureaus are run by humans who can make mistakes when updating your credit file. It is why you need to peruse your credit report carefully to identify any inaccuracies that damage your FICO score. Formal complaints must be made to the credit agencies and creditors for corrections to be made if any.
Disassociate with bad credit individuals
If you hold a joint account with your wife, husband, or business partner, their FICO score is reflected on your credit report. Therefore, if they have a lower FICO score, it will drag yours. When your association with them ends, write to the credit agencies to remove them from your file. Otherwise, your FICO score remains low or deteriorates further.