669 Credit Score: Is it Good or Bad?

Statistically, 28% of consumers in the acceptable range have the potential for severe defaults down the road. Some lenders do not like these odds and prefer not to work with individuals with a FICO(r) score within that range. However, lenders specializing in “subprime” borrowers might look for consumers in the Fair range but typically charge higher fees and interest rates. Consumers with FICO(r) scores in the Better field (670-739) or higher are generally offered considerably better terms.   

The median FICO(r) Score is 711, a little higher than your score of 669, meaning that you are getting a good chance at improvement. More importantly, your score of 669 is close to the good-credit range of 670-739.    

How to improve your 669 Credit Score

With a bit of work, you can probably get up to that range of scores (and maybe even above it), which can mean access to a broader array of loans and credits with better interest rates. The best way to work on improving your credit starts with checking your FICO(r) score. The report delivered along with your score will use details from your unique credit report to recommend ways to raise your score. If you focus on the issues highlighted in the news and adopt habits that contribute to a good credit score, you may see consistent score improvements — as well as the broader access to credit that typically comes with it.   

While anyone who has reached the FICO(r) 669 score has taken their own unique route to get there, those who fall into the acceptable range of scores have typically experienced difficulties managing their credit. The credit reports for 41% of Americans with a FICO(r) Score of 669 included 30-day delinquent payments. Credit reports for individuals with fair credit scores, based on a Fair Range core, frequently list late payments (30 days or more past due) and collections accounts, indicating that a creditor has given up trying to collect an unpaid debt and has sold the debt to a third-party collection agency.   

Some individuals with FICO(r) scores in the Fair range may also have significant adverse events–events that significantly lower scores–on their credit reports. Full recovery from these adverse events may take as long as 10 years, but you can take steps to move your score in the right direction right now. Reviewing the reports that come with your FICO(r) Score can help you determine what events caused the score to decline. If you fix the behaviours that led to these events and work consistently to improve your credit, you can set yourself up for better credit.   

What is In A Credit Score?. A credit score, like FICO(r), is based on your debt-management history, which is recorded on your credit file. The score is an aggregated summary of how well you have managed credit and bills. Good credit habits generally contribute to higher credit scores, whereas bad or inconsistent habits typically contribute to lower scores. Public information: If bankruptcy or other public records appear in your credit report, it could significantly negatively affect your credit score.   

Among consumers with a score of 669 on FICO(r), the average credit card debt is $13,429.    

Delinquent accounts and late or skipped payments hurt your credit score. A history of paying bills on time will help your credit score. It is pretty simple and the one most significant impact your credit score has, accounting for up to 35% of your FICO(r) score.   

To figure out your Credit Utilization Ratio, add the balances on your revolving credit accounts, like credit cards, and divide the results by your total credit limit. If you owe $4,000 on a credit card and your total credit limit is $10,000, then your credit utilization rate is 40%. You may know your credit score would take a hit if you “maxed out” your credit limits, pushing utilization up to 100%, but you might not know that most experts recommend keeping the utilization rate under 30% to avoid hurting your credit score.   

Credit utilization accounts for approximately 30% of your FICO(r) score. Credit scores typically benefit from long credit histories. There is not much that a new credit user can do to help with this other than to avoid bad habits and try and build up a record of making prompt payments and reasonable credit decisions.  

The length of your credit history may make up as much as 15% of your FICO(r) score. Credit scores reflect your total outstanding debt and the types of credit you have used.

Recent credit inquiries may make UP to 10% of your FICO(r) score. Fair Credit Scores cannot be transformed overnight into outstanding ones, and only time will correct specific negative issues contributing to a Fair Credit Score, like bankruptcies and foreclosures. No matter what is behind your fair score, you can immediately begin improving how you manage your credit, which may result in an improved credit score.   

Pay Your Bills on Time: Late and missed payments can damage credit scores, so avoid those. Take advantage of autopay, calendar alerts, and other automated tools–or just use post-it notes and a paper calendar.    

Do what you can to help yourself remember, and you will quickly adopt good habits conducive to improving your credit score. Avoid a high Credit Utilization Rate: High Credit Utilization, or the use of debt.   

The FICO(r) scoring system bases roughly 30% of your credit rating on this measure: The percentage of your available credit limits represented by the number of your outstanding payments. Try to keep the usage rate across your accounts below about 30% to keep your score from dropping. Among consumers with FICO(r) credit scores of 669, the average utilization rate was 63.1%.    

Try to build up a potent mix of your credit. You should not borrow the money you do not need, but smart borrowing, including a combination of revolving credit and fixed-rate debt, can benefit your credit score. A FICO(r) score of 669 is an excellent place to build a better credit score.