What Can I Do With a 670 Credit Score?

A credit score is a numerical representation of an individual’s creditworthiness, used by lenders and service providers to assess risk. This three-digit number, typically ranging from 300 to 850, helps determine eligibility for loans and services. A 670 credit score generally falls into the “Good” category for FICO scores, which range from 670 to 739. VantageScore models may consider it “Good” (starting at 661 or 670) or “Fair” (starting at 560 or 601). This score indicates a decent track record, positioning an individual above those with lower scores but below those with very good or excellent credit.

Understanding Your 670 Credit Score

A 670 credit score signals a moderate level of risk to lenders. While not high-risk, it typically does not qualify for the most favorable interest rates or terms, which are reserved for scores of 740 and above. Lenders often perceive this score as indicating consistent on-time payments, though past late payments or a limited credit history might prevent a higher score.

Several factors contribute to a credit score. Payment history is the most significant, accounting for 35% to 40% of the score. Credit utilization, or the amount owed, makes up 30%. The length of credit history contributes 15%. New credit inquiries and the types of credit used each account for about 10%.

Credit Card Access with a 670 Score

With a 670 credit score, you generally have access to a range of credit card options, though terms may not be as attractive as those for higher scores. You will likely qualify for unsecured credit cards, which do not require a security deposit. While mainstream cards may be available, premium cards offering extensive rewards or 0% introductory APRs are typically reserved for higher credit scores.

For unsecured cards, annual percentage rates (APRs) can range from 19% to 29% or more, often higher than the most competitive offers. Annual fees are possible, though many cards at this score level have no annual fee. Initial credit limits may be lower, reflecting the moderate risk assessment by lenders, often starting from a few hundred to a few thousand dollars. Some cards might offer modest rewards, such as 1% to 2% cash back on purchases, but higher-tier rewards programs are generally out of reach.

Loan Opportunities with a 670 Score

A 670 credit score opens doors to various loan opportunities, including personal loans, auto loans, and mortgages. However, the terms offered may not be the most advantageous.

Personal Loans

Individuals with a 670 score can generally secure personal loan funding. Interest rates might range from 7% to 36%, depending on the lender and other financial factors. Loan amounts typically vary from $1,000 to $50,000, with repayment terms often between two and seven years. While a 670 score is considered “good,” it might not secure the lowest possible rates, which are often reserved for those with higher scores.

Auto Loans

A 670 FICO score is considered good, making auto loan approval likely. However, interest rates may be higher than for borrowers with excellent credit. For new cars, average APRs for this score range might be around 6.70% to 9.59%, while used car loans could see rates from 9.06% to 14.46%. Lenders might also request a larger down payment or more stringent loan terms due to the moderate risk profile. A co-signer could potentially help secure more favorable rates or improve approval chances.

Mortgage Loans

A 670 credit score is generally sufficient for mortgage approval, though it is at the lower end of what is considered “good” for some models. Conventional loans often require a minimum score of 620, but a 670 score can lead to better, though not the best, rates. Government-backed loans, such as FHA loans, are particularly accessible, requiring a minimum FICO score of 580 for a 3.5% down payment. Borrowers should anticipate interest rates that are not the absolute lowest available and may need to provide a higher down payment or pay private mortgage insurance (PMI) if the down payment is less than 20%.

Other Financial Engagements with a 670 Score

Beyond traditional lending products, a 670 credit score can influence various other financial engagements.

Renting an Apartment

When renting an apartment, a 670 score is generally considered “good” and can lead to approval in most rental markets. Landlords often view this score positively, indicating a lower risk for timely rent payments. In highly competitive rental markets or for luxury properties, landlords might prefer scores of 700 or higher, potentially leading to requests for a higher security deposit or the need for a co-signer.

Utility Services

Utility service providers, such as those for electricity, gas, or internet, often use credit scores to determine if a security deposit is required for service hook-up. A 670 credit score can frequently help in waiving or reducing such deposits, as it indicates a reliable payment history. Companies assess credit risk to minimize potential losses from unpaid bills, and a solid credit score can signal a lower likelihood of default on utility payments.

Insurance Premiums

Insurance premiums, including those for auto or home insurance, can also be influenced by credit-based insurance scores. Many insurers use these scores, derived from credit report information, to assess the likelihood of a policyholder filing a claim. While not identical to standard credit scores, a 670 credit score generally translates to a more favorable insurance score, potentially leading to moderate insurance rates. A lower credit score is often correlated with a higher likelihood of claims, meaning a 670 score could help avoid significantly higher premiums that individuals with lower scores might face.