Is 659 a Good Credit Score? Understanding the Importance of Your Credit Score

Lenders utilize your credit score, which functions as a kind of financial report card. good credit score opens doors to better loan conditions, lower interest rates, and more financial possibilities. But fair what does a credit score of 659 speak to precisely? Is 659 a respectable credit score, or is work still required? We'll investigate the specifics of a credit score of 659, its significance, and how it seems to influence your monetary life in this all-inclusive direct.

Is 659 a Good Credit Score?

With a credit score of 659, one falls in the usually regarded "Fair" level. Although the score is not poor, it also falls below the "Good" or "Excellent" ranges. Lenders might see this number as evidence that you would be somewhat more dangerous to lend to than those with higher scores. Still, there are plenty of cash prospects right at your disposal. With some effort, you may aim to raise your credit score and receive better financial offers.

Understanding Credit Scores and Their Categories

Usually spanning many categories, credit ratings each show a distinct degree of creditworthiness. These are poor: :

• Poor: 300 - 579
• Fair: 580 - 669
• Good: 670 - 739
• Very Good: 740 - 799
• Excellent: 800 - 850

Although your score falls within the "Fair" level, keep in mind that credit score ranges vary somewhat according to the credit reporting bureau.

The Impact of a 659 Credit Score

Limited Access to Low-Interest Rates

With a credit score of 659, you could find your access to the most competitive interest rates restricted. Although you might still be qualified for credit cards and loans, the lowest rates may not apply. Particularly on bigger loans like mortgages, this may cause interest paid over time to rise.

Approval for Credit Applications

Having a credit score of 659, you should usually be accepted for credit applications. The terms and conditions presented to you, nevertheless, may not be as beneficial as those provided to people with better credit ratings. Be ready for maybe reduced credit limits and maybe higher interest rates.

Employment Opportunities

Particularly for jobs involving financial responsibility, some companies might take credit ratings into account throughout the recruiting process. Although your credit score is not too low, keeping or raising your score would help you be more employable in such jobs.

Tips for Improving a 659 Credit Score

• Review your credit report: Get your credit report and check it for mistakes or errors. Verify any differences you come across to make sure your score is computed fairly.
• One of the best strategies to gradually increase your credit score is to regularly pay your obligations on time.
• Try to keep your credit card balances less than thirty percent of your credit limit. Your score may improve with less credit use.
• Show good credit management by diversifying your credit mix—that is, by including credit cards and installment loans.
• Restrain New Credit Applications: Opening many new credit accounts quickly will lower your score. Apply for limited new credit.
• Use Credit Sensibly: Only borrow what you can afford to back off from. Steer clear of using your credit cards max-wise or accumulating too much debt.
  

Frequently Asked Questions (FAQs)

Can I Get a Loan with a 659 Credit Score?

Yes, you can still get a loan with a credit score of 659. However, the terms and interest rates might not be as favorable as those offered to individuals with higher scores.

How Long Will It Take to Improve My Credit Score?

Improving your credit score is a gradual process that depends on various factors, including your credit history and how consistently you follow good credit habits. It might take several months to see significant improvements.

Will Closing Old Accounts Help Improve My Score?

Closing old accounts can hurt your credit score. These accounts contribute to the length of your credit history, which is an important factor in your score calculation.

Can I Check My Credit Score for Free?

Yes, you're entitled to a free credit report from each of the major credit bureaus once a year. Many online platforms also offer free access to your credit score.

How Can I Build Credit if I Have No Credit History?

If you have no credit history, consider starting with a secured credit card or becoming an authorized user on someone else's credit card. Responsible use of credit will help you establish a positive credit history.

Will Settling Debts for Less Than I Owe Hurt My Credit Score?

Settling debts for less than you owe, also known as a debt settlement, can hurt your credit score. It's important to explore other options and consider the long-term consequences before pursuing this route.

Conclusion

Within the realm of personal finance, a credit score of 659 is only a stepping stone. Even if it would not be categorized as "Good," it nonetheless offers access to many income prospects. Your credit score matters whether your goals are to find a job, be authorized for a credit card, or even a loan. Understanding its importance and using sensible financial principles can help you gradually raise your credit score. Recall that each action you do now creates a better financial future for tomorrow.

Advance your life and your credit. To get professional advice on improving your credit score, phone (888) 804-0104.