A 670 FICO score opens the doors to more opportunities for borrowers, such as mortgage loans, personal loans, higher credit limits, and other financial products. It’s a good score to have, but there’s always room for improvement. This guide will explore how a 670 FICO score impacts your finances and how to add more points to your credit score.
Understanding a 670 Credit Score
A 670 FICO score puts you in a good position to qualify for more loans and credit cards. Here’s what you should know about it.
What is a Credit Score?
Your credit score is a three-digit number that creditors use to assess your application when you apply for a loan or a line of credit. It offers a snapshot of how well you manage other financial obligations, such as monthly loan payments and credit card debt.
Credit Score Ranges
Your FICO score ranges from 300-850, and a higher credit score is better. A 670 FICO score will help you qualify for most financial products and is considered a good credit score.
What Does a 670 Credit Score Mean?
A 670 credit score means that you are staying on top of your expenses and have more room for improvement. This credit score should help you get a mortgage and similar financial products if you fulfill the other requirements.
Factors Influencing a 670 Credit Score
Several components go into determining your credit score. These are the highlights.
Payment History
A good payment history is critical for maintaining a good credit score since it makes up 35% of your FICO score. Make sure you pay all of your bills on time and avoid spending more than you earn.
Credit Utilization
Credit utilization makes up 30% of your credit score. Paying off credit card debt and having low or no balances will reduce your credit utilization ratio. A lower ratio is more beneficial for your credit score.
Length of Credit History
The length of your credit history makes up 15% of your total FICO score. Keeping old accounts open can extend your average credit age and help you gain more points over time.
Types of Credit Accounts
Credit mix makes up 10% of your FICO score. It reflects your ability to juggle multiple types of debt, such as installment loans and lines of credit.
Recent Inquiries
Any hard credit checks will have a negative impact on your credit score. Keep loan and credit card applications to a minimum so you don’t incur too many hard credit inquiries.
Implications of a 670 Credit Score
A 670 credit score offers many benefits, including these perks.
Loan Approval Chances
You will have a better chance of getting approved for loans if you have a 670 FICO score. You’ll fulfill the minimum credit score requirement for many lenders, and you won’t have to resort to no-credit-check loans. While those loans make capital more accessible, they also come with excessive rates. A 670 FICO score ensures you can choose from some of the top financing options available.
Interest Rates
A good credit score can help you secure a lower interest rate for your loans and lines of credit. A 670 FICO score is considered good, but it also gives you the opportunity to improve. Your credit score will gradually go up as you make on-time payments and trim your credit card debt.
Credit Card Offers
You’ll qualify for better credit cards that offer enticing welcome bonuses and rewards programs. Credit card issuers want to work with people who have good credit scores and histories of making on-time payments. You’ll then have access to better rewards programs that allow you to earn more money with every purchase.
Renting an Apartment
Landlords want to do business with stable tenants that make consistent monthly payments. A 670 credit score will give you more choices as a tenant and can result in competitive rent offers.
Employment Background Checks
Some employers will review your credit score before hiring you. A good credit score demonstrates that you can manage your finances and other responsibilities, which can increase your chances of getting hired.
Steps to Improve a 670 Credit Score
While a 670 credit score is good, you can build up to a great credit score. These are some of the steps you can take to add more points to your credit score.
Pay Bills on Time
On-time payments will improve your credit score and demonstrate that you can handle additional debt if necessary. Reviewing your budget and spending less than you earn will make it easier to stay on top of bills.
Reduce Outstanding Debt
Paying off credit card debt and other outstanding debt will improve your credit utilization ratio. This component makes up 30% of your FICO score. Making progress in this area can boost your credit score well above 670.
Transferring your credit card balance to a new card with 0% APR for 12-18 months or taking out a debt consolidation loan can help you reduce outstanding debt. It will become more manageable to pay off, and you’ll end up with a lower interest rate. If you go the credit card balance transfer route, just make sure the balance transfer fee is reasonable. It shouldn’t be above 3% during the intro period.
Avoid Opening New Credit Accounts Unnecessarily
Don’t rush to open new credit accounts. That way, you’ll avoid additional hard credit checks that will temporarily reduce your FICO score. While getting loans and lines of credit for some expenses is necessary, you shouldn’t rely on them or turn borrowing money into a habit.
Check for Errors on Credit Report
Finding mistakes on your credit report and disputing them can result in a higher credit score. You’ll have to file a dispute with a credit bureau and present documentation proving that any items in question are inaccurate.
Keep Old Accounts Open
Keeping old accounts open increases the average age of your credit accounts and lowers your credit utilization ratio. If you still need activity on an old credit card, you can use that card to pay for a single monthly subscription. Then, you’re covered.
Tools and Resources for Managing Your Credit
Consumers can use several tools and resources to stay on top of their credit scores and exceed 700 FICO scores. These are some of your top options.
Credit Monitoring Services
Credit monitoring services allow you to stay on top of fluctuations in your credit score. Knowing your FICO score and regularly having it available can serve as an inspiration and help you track your progress. You can also see how events like on-time payments and late payments affect your credit score.
Financial Advisors
Financial advisors can offer guidance on how to stay on top of your monthly bills and offer valuable insights that can result in a higher credit score. It’s important to only invest in a financial advisor if you can afford their services. It doesn’t make much sense to go deeper into debt just to work with a financial advisor. Consumers can choose from a wide range of advisors. Some of them are affordable, while others charge higher prices due to their skills and years of experience.
Credit Counseling
Credit counseling organizations and service providers also provide guidance that can help you stay on top of your debt and expenses. You’ll receive insights that can lead to a higher credit score over time.
Companies Specializing in Improving Your Credit
These companies specialize in rebuilding and fixing credit scores. They offer consulting services like credit counseling companies, but they also review your credit report and dispute any errors. While you can reach out to the credit bureaus and dispute mistakes on your own, not everyone has the time to contact the major credit bureaus and submit evidence.
They can handle those responsibilities for you and offer a quick boost. However, these services only work if there are actual errors on your credit report. These companies can’t do much if your credit report only contains accurate information.
One such company is The Credit Pros. With their in-depth knowledge of the credit reporting landscape, their team is equipped to assist you in identifying and disputing errors that could be holding you back financially. The Credit Pros position themselves as experts in this critical area, offering customized services designed to identify inaccuracies and facilitate fast and effective resolutions.
Don’t let inaccuracies derail your financial goals. Reach out to The Credit Pros today to avail of their 100% 90-day money-back guarantee and affordable pricing with no long-term contracts. You can contact them at (727) 306-8201 or simply fill out a form with no obligation.
