What Can I Get With a 665 Credit Score?
Understand what financial access and terms a 665 credit score provides for various credit opportunities.
A 665 credit score falls within the “fair” category, indicating a reasonable level of credit responsibility. While this score suggests a decent credit history, it may also indicate past late payments, high credit card balances, or a limited credit history. Lenders view a 665 score as moderate risk, leading to higher borrowing costs. Achieving a higher credit score can unlock more favorable financial opportunities, including better rates and loan terms.
Credit Cards
Individuals with a 665 credit score can access various credit card options, though not typically premium cards with the most competitive rewards or lowest interest rates. Many issuers offer credit cards designed for “fair” credit. These cards often have higher Annual Percentage Rates (APRs) compared to those offered to borrowers with excellent credit. APRs for fair credit can range from approximately 24.99% to 29.62%.
Credit limits for those with a 665 score are lower than for those with excellent credit, starting around $500 to $1,000. Some cards for fair credit may have annual fees, but fee-free options are available. Secured credit cards, requiring a security deposit equal to the credit limit, are accessible and can help build credit. Unsecured cards, which do not require a deposit, are also available.
Personal Loans
Obtaining a personal loan with a 665 credit score is possible, but borrowers should anticipate higher interest rates compared to higher scores. Lenders may consider a 665 score as subprime, meaning rates will reflect increased risk. Personal loan interest rates can range from around 7% to 36%, with those having fair credit receiving rates on the higher end, potentially around or over 30%.
Loan amounts for personal loans can vary significantly by lender, ranging from $1,000 to $50,000, with some lenders offering up to $100,000. Repayment terms extend from two to seven years. Some personal loans may also include origination fees, often deducted from the disbursed loan amount.
Auto Loans
A 665 credit score positions an individual well for securing an auto loan. This score is considered within the “prime” or “nonprime” category by some auto lenders, making approval likely. However, the interest rates offered will be higher than for those with top-tier credit.
For a new car, a 665 score may result in an average interest rate between 6.70% and 9.83%. For a used car, rates might range from 9.06% to 13.74%. These rates are higher than the 5.18% average for new cars obtained by those with excellent credit. A larger down payment can improve loan terms and potentially lower the interest rate.
Mortgages
Securing a mortgage with a 665 credit score is feasible, with several mainstream mortgage products available. Federal Housing Administration (FHA) loans are accessible with more lenient credit requirements, requiring a minimum FICO score of 580 for a 3.5% down payment. For a 665 score, FHA loans are a strong option, as many FHA lenders require a credit score of at least 620.
Conventional loans, which are not government-backed, require a minimum credit score of 620. While a 665 score meets this minimum, securing the most favorable rates requires a higher score, such as 740 or above. Borrowers with a 665 score can expect higher interest rates and potentially higher private mortgage insurance (PMI) premiums on conventional loans compared to excellent credit. Average interest rates for a mortgage with a credit score between 620 and 669 can range from approximately 3.317% to 4.293% on a $300,000 mortgage, while excellent credit could see rates around 2.704%.