A 675 credit score is generally a fair score. A 675 credit score is a middle road, it’s not bad but not great either. While a lot of people have credit scores ranging between these numbers it’s good to know that you are not alone. A 675 credit might not get you the best benefits on car loans, mortgage payments, etc, but there are still several ways you can improve your credit score.
Credit scores ranging from 670-739 are considered good. According to FICO®, approximately 15% of Americans have a credit score ranging from 670-739 which makes it important to understand the benefit and different ways by which you can utilize the full potential of your credit score. It is also important to note that credit scores are quite helpful for an individual looking to achieve financial security.
Credit Score Ranges
Credit scores typically fall within the following ranges, depending on the scoring model used (most commonly FICO® and VantageScore).
- 300 to 579: Poor
580 to 669: Fair
670 to 739: Good
740 to 799: Very Good
800 to 850: Excellent
There are several factors influencing your credit score such as payment history, credit utilization, and types of credit accounts. It is important to keep an eye on these factors for people looking to achieve a better credit score. Payment history is one of the most significant, reflecting on your records of on-time payments versus missed or late payments.
Fun Fact: 22.5% of Gen-Z have a credit score ranging from 640-699.
Understand a 675 Credit Score
A 675 credit score does not open the door to great possibilities but with a fair credit score, you can still get better offers on loan terms in comparison to a person building their credit score from scratch. With a 675 credit score, you can get pre-approved for mortgage and insurance premiums. You may also qualify for reward credit cards or cash-back cards, which can offer benefits for your purchases.
Credit score of 675 puts you in a decent position for accessing financial products, though not always with the best terms. With this score, lenders see you as a fair borrower, making it possible to secure loans and credit cards, but often at moderate interest rates. By improving this score, you can enhance your eligibility for lower rates, better rewards, and more favorable loan terms.
How to improve your 675 Credit Score
According to Experian and FICO®, about 70% of Americans aim to boost their credit score to 700+, with 40% actively paying down debt or disputing errors. This huge number is directly related to the benefits of a good credit score. You can improve your credit score of 675 to a higher, more advantageous number by becoming more financially responsible and making better changes.
Make Timely Payments:
As discussed before, your payment history is the most significant factor in improving your credit score. Consistently making on-time payments is crucial for a positive credit history. Set reminders or automate payments to stay punctual.
Reduce Credit Balances:
Keep your credit utilization below 30%. Paying off your balances in full each month can significantly enhance your score. For example, if your total credit limit is 100,000, you should aim to keep your balances below 30,000.
Avoid New Credit Applications:
Avoid frequently applying for new credit, as each hard inquiry can lower your credit score. Instead, you should focus on managing your existing credit effectively and make the most of the benefits it offers.
Request Higher Credit Limits:
Ask for increased credit limits on existing accounts to improve your utilization ratio, as long as your spending remains in check. Higher credit limits can help increase your credit balance through which you can freely spend more.
Diversify Your Credit Mix:
You can consider adding different types of credit, such as installment loans, to show you can handle various forms of debt responsibly. Having a variety of credit types can positively influence your score.
Check for Errors:
According to the CFPB, nearly 20% of Americans have never checked their credit report, despite its importance for loans and interest rates. Regularly review your credit reports for inaccuracies. Dispute any errors to prevent the authorities from negatively affecting your score. Sometimes these inaccuracies can be responsible for bringing your credit score down.
Bottom Line
A 675 credit score is decent, offering access to various financial products, but it doesn’t provide the best terms. By managing your payments and keeping your credit utilization in check, you can gradually improve your score. This score is a starting point; with some attention to your financial habits, you can unlock better opportunities in the future. It’s a practical approach to securing more favorable rates and terms when you need them.