A credit score of 667 is considered “Fair.” The FICO credit score model splits credit scores into five distinct categories:
- Very Poor: 300 to 579.
- Fair: 580 to 669.
- Good: 670 to 739.
- Very Good: 740 to 799.
- Exceptional: 800 to 850.
A score of 667 lands at the top end of the “Fair” section. While this puts you very close to good credit, though, the Fair classification will hold you back from some financial activities.
With that said, use the information below to help you identify where your score is suffering. Then utilize that info to improve your score and tap into the many benefits that come with good credit.
Table of Contents
Why Your Credit Score Is 667
The first step in improving your credit score is figuring out how you got to a score of 667 in the first place.
Each score is a combination of many of your past financial decisions and transactions. While every score is unique, they often draw on the same grading factors to calculate the score itself.
The most important of these are included below. Consider each one and gauge if it has helped or hindered your score up to this point.
Payment History and Credit Utilization
While everything on this list is worth considering, there are two factors that always rise above the rest: your payment history and credit utilization.
Your payment history is the number one factor. If you miss payments or default on loans, it can do the most damage to your credit.
Your credit utilization is the amount of your available credit that you’re actually using. If you have $10,000 in credit and you’ve borrowed $5,000, your ratio is 50%. Any ratio over 30% can harm your score.
Derogatory Marks and Hard Inquiries
If your credit report has a hard inquiry or, even worse, a derogatory mark, it can drag your score down.
A hard inquiry takes place when a lender does an official credit check. When done in moderation, this isn’t a bad thing, and the event only lowers your score for up to a year before it will go back up. In this case, the difference could easily bump you back into the good credit range.
A derogatory mark is more serious. It usually comes from a significant financial shortcoming, such as:
- Missing payments;
- Defaulting on a loan;
- Having a collection agency make a claim against you;
- Going through a foreclosure or repossession;
- Declaring bankruptcy.
If you have a derogatory mark on your credit report, it’s important to fix the issue as soon as possible. Then send a goodwill letter to the lender politely asking them to remove the mark.
Credit Age, Mix, and Amount
Finally, there are three more items that can significantly impact your credit score:
- The age of your credit: If you have new credit or you’ve opened up several new accounts, it can lower the average age of your credit, which consequently reduces your score.
- The variety of your credit: Your credit mix should consist of multiple options, such as an auto loan, student loans, credit cards, or a mortgage. Limited credit variety lowers your credit.
- Your total debt: If the amount of non-revolving credit you utilize is very large, it can intimidate lenders and lower your score.
Consider each of these, as well as the previous categories, and then compare them to your financial track record. Note where you’ve done well and what areas could use improvement.
What Can You Do With a 667 Credit Score?
A 667 credit score doesn’t disqualify you from lending opportunities. However, it does limit what you can do and what benefits you can access. For instance, you’ll still be able to:
- Open up credit cards. However, be aware that you likely will have to jump through extra hoops, such as paying an annual fee, agreeing to a higher interest rate, or accepting a lower borrowing limit.
- In addition, you likely won’t qualify for many of the rewards cards that are available.
- Get a loan: From auto loans to a mortgage, you can still apply for loans. However, be prepared to face steep interest rates as lenders attempt to hedge their bets due to your lower score.
- Apply for an apartment: Landlords will often review your credit to see if you’re a trustworthy tenant that can make payments on time.
- While a 667 score is close to good credit, the fact that it’s technically Fair may make some landlords pause. At the least, it may increase your deposit if you’re approved.
While you aren’t going to be left destitute, there are certainly limitations that come with having a Fair credit score.
How to Repair a 667 Credit Score
At 667, your score is just three points away from having good credit. Nevertheless, you’re technically in the Fair credit score range, and it’s imperative that you focus on getting out of that categorization as soon as possible.
With that in mind, utilize the following tips to help you improve your score as soon as possible:
- Make and maintain a budget: A budget is ground zero for establishing good financial habits. Make a budget and then update it regularly and stick to it.
- Perfect your payment history: Set up autopay and payment reminders and generally do everything in your power to make every payment on time and in full.
- Use your revolving credit: Make an effort to utilize your revolving credit lines regularly and correctly to improve your credit history.
- Reduce your debt: Pay down as much of your non-revolving debt as possible.
- Review your credit report: Get your annual credit report every year. Review it and then dispute errors and resolve derogatory marks whenever they show up.
- Consider contacting a professional: If you’ve tried before and found that improving your credit is too overwhelming, consider reaching out to a credit repair company to help you take your finances to the next level.
There are many ways to improve your credit. Now that you have a firm idea of your current situation, it’s time to sit down, create a financial plan of action, and then begin the process of taking your credit from sub-par to excellent.
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