660 Credit Score

Understanding the 660 Credit Score


660 Credit Score
3 660 Credit Score

A credit score can be described as a number that gives an overall financial position of an individual. It is a reliable method of determining an individual’s creditworthiness that works by analyzing one’s credit files and evaluation of potential risks that may arise after lending out money to consumers.

About the scoring model

This is helpful for the lenders who wish to avoid losses that arise from bad debts. This formula is known as the FICO score.
The model was created by Fair, Isaac and Company (known as FICO). It ranges from 300 to 850.

The score is used by lenders to determine the capability of an individual to repay a loan. A higher number shows better chances of repaying the loan in good time. A lower number like 300 indicates that such a person is likely to miss making payments and the chances are that lenders will shy away from offering loans to such individuals.

A credit score that begins from 660 to a 719 is termed by most people as good.

Different lenders tend to have their own definition on what a good credit score is and it may vary from one lender to another. It’s essential therefore to have a high credit score since some lenders may not consider the score of 660 as good enough.

Benefits of a 660 credit score

  • A credit card with no annual fee.
  • A credit card with the financing of 0%
  • A credit card with no foreign fee.
  • A credit card for one’s favorite store.
  • Personal loans may be either available or not available.
  • Apartment rental may or may not be available.


In the United States, the average credit score is 669 which is considered as a good credit score. This is as per the latest WalletHub data.
Among the states, Minnesota has the highest credit score of 702.


  1. History of payment.
    It shows how payments have been done previously and their timeliness.
  2. Amount of debt.
    It gives the number of credit cards an individual has and the amount of balance in each.
  3. The credit history period.
    It shows the length of time the credit card has been in use.
  4. Newly acquired credit.
    It shows if one has opened any recent account.
  5. The number and type of credit used.
    The information required to come up with the credit score is available on a credit report.
    The credit report consists of a well-detailed history on how you have been able to handle debts in the previous years.
    It’s advisable to have a copy of your credit report prior to borrowing a loan in order to know your credit score.

Interest rates

Different credit scores affect the interest rates, a credit score lower than 660 may have a higher interest rate. This makes a mortgage to be more expensive compared to a higher credit score.
This shows well that credit scores should be maintained at high levels for loans which have low interest rates. Credit score is a significant determinant of the interest rate but it is not the only factor that lenders consider.
Other factors are:

  • The type of loan
    Different loans have different interest rates depending on the amount of loan borrowed, the period of loan repayment.
  • The size of downpayment
    Lenders offer a lower interest rate to those who raise a higher downpayment.


A good credit score can make one’s future better. It determines if one qualifies for a loan or a credit line.
It has an impact on the interest rate to be paid depending on the amount of money borrowed on your home or car.
It improves the chances of qualifying for an apartment lease or a loan for a home.
This shows that a good credit will help in having more savings and the chances of rejection from the lenders will be quite small. Low credit scores may mean that one has to make huge deposits prior to being allowed to open new bank accounts, or new lease.
Low credit scores could lead to lost employment opportunities.


  1. Disputing the negatives on your credit report.
    You can dispute a credit report if information provided is not accurate. Such information can be removed or corrected.
  2. Clearing balances of collection accounts to zero.
  3. Cutting down credit utilization to less than 30% of the credit available in the account monthly.
  4. Timely monthly payments.
    Making timely loan payments improves the credit score while late payment or omitting payments can have a negative impact on the credit score.
  5. Use of a credit card with no annual fee.
  6. Public information.
    Bankruptcies, civil judgements and tax liens are some of the public information that can appear on a credit card and cause a negative impact on the credit score.
  7. Hard inquiries
    Caution should be taken to avoid appearance of hard inquiries on the credit report when applying for a new credit card. This can lead to a low credit score. It’s advisable for one to check his own credit as this won’t affect their credit score negatively.


  • There is no reverse to a late payment but presentation of an overdue account can improve the credit score.
  • Payment of tax lien or a civil court judgement as per the repayment guidelines given by the court can have a high impact on the credit score.
  • Clearing the original creditors and collection agencies towards collection action taken against you can improve the credit score.
  • Application of new credit lines should be avoided until there’s improvement of your current credit standing.
  • All other bills should be paid on time. These bills could be auto loans, credit cards or student loans.

Copyright © 2020 DeDebt.com | All Rights Reserved