Per the FICO credit score ranges, a credit score of 671 qualifies at the low end of a good score, which is typically classified as between 670 and 739.
Having a strong credit score can be crucial to getting approved for the loans many people need throughout life. The higher your score, the more likely you are to get a mortgage, car loan, personal loan, or credit card — and at competitive interest rates.
With a 671, you likely won’t have trouble qualifying for any loans, though you should aim for a score from 740 to 850 (“very good” to “excellent”) to get the best rates and terms.
Below, you’ll learn what it means to have a credit score of 671, including what kinds of loans you’ll qualify for and what rates you can expect.
What Does a 671 Credit Score Mean?
Companies like FICO and VantageScore use the data on your credit report (you have one with each of the three major credit bureaus) to assess how reliable you are as a borrower. Their analysis results in a credit score, which represents how responsibly you manage and repay your debts.
While there are multiple credit scoring models, the most popular one in the United States is FICO, where scores range from 300 to 850. So is a 671 credit score good on this model? Yes, but just barely. Here’s what FICO’s credit score ranges look like:
- Exceptional: 800 to 850
- Very Good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 300 to 579
As you can see, a 671 credit score is just above the bottom threshold of what FICO deems a “good” score. There’s good news if you have a 671 credit score: Though you may not get the best rates and lowest fees, you shouldn’t have trouble qualifying for credit.
What Can You Get with a 671 Credit Score?
With a 671 credit score, you’ve officially landed in the “good” category on FICO’s scoring model. That means you should qualify for credit cards, personal loans, mortgages, and car loans.
That said, there’s still a lot of room for your score to grow. If you build your credit score over time, you may be able to qualify for loans with lower interest rates, more flexible terms, fewer and lower fees, and higher borrowing amounts.
Can I Get a Credit Card with a 671 Credit Score?
There is no minimum credit score to get a credit card. Those with lower scores may find, though, that what they are offered is different than someone whose score is in the very good or excellent range.
Some credit card issuers offer secured credit cards to borrowers with poor credit. These can come with high interest rates and require some form of collateral (usually a cash security deposit). Since you need to have the cash upfront for the security deposit, it’s not really useful for borrowing money you don’t already have — but it can help you build your credit score to qualify for a better unsecured card.
But if you have a 671 FICO score, you are likely to have considerably more options. While many credit card issuers only offer rewards credit cards and travel credit cards to borrowers with very good or exceptional credit, borrowers with good credit can still usually still qualify for unsecured cards with decent rates and fees.
Can I Get a Personal Loan with a 671 Credit Score?
As with credit cards, there’s no single minimum credit score for personal loans. Each lender has its own requirements, and there are lenders out there who will offer secured personal loans (again, backed by collateral) to subprime borrowers — that is, those with credit scores at or near the low end of the spectrum.
Borrowers who don’t have great credit may also be able to get a true unsecured personal loan, but interest rates can go as high as 36%, which makes this an expensive borrowing option. Online lenders, which you can find through personal lending marketplaces, can be a good place to start.
With a 671 credit score, however, your options for personal loans really start to open up. Lenders may offer you a higher loan amount, more flexible repayment terms, lower or no origination fees, and lower interest rates. This can be helpful if you are looking for a credit card consolidation loan or, say, funds to pay off medical debt.
Just remember that credit scores are only one component of a personal loan lending decision. Lenders will also want to see that you have steady income to repay the loan and that you don’t already have too much debt in your name. When you research how to apply for a personal loan, you will see that your credit score, income, and outstanding debt are likely to be considered.
Can I Get a Mortgage with a 671 Credit Score?
Personal loans and credit cards are one thing, but will lenders allow you to buy an entire house with a 671 FICO score? In many cases, yes. In fact, according to Experian, more than a quarter of Americans with a 671 FICO Score have a mortgage loan.
The minimum credit score to buy a house is usually 620 for conventional mortgages, but you can get approved for government-back loans (FHA loans, VA loans, and USDA loans, for instance) with scores ranging from 580 to 620.
Conventional loans often require a sizable down payment, so you’ll need to make sure you have enough money to fund the purchase. The lowest amount you can typically put down is 3%, but lenders may require you to put down more, even with a 671 credit score.
As with personal loans, when you go through the steps of how to get a mortgage, there are an array of factors involved. The underwriting process for a mortgage loan is complex and will include income and employment verification, among other forms of input.
Can I Get An Auto Loan with a 671 Credit Score?
The principles of buying a new or used car are similar to the other loans discussed here: The better your credit score, the better your chances are of approval — and at a lower interest rate. However, auto lenders typically use a special FICO Score, called the FICO Auto Score (250 to 900). Others may use a VantageScore 3.0 or 4.0 scoring model.
Generally, a 671 FICO Score should translate to approval for a typical car loan. Experian reports that nearly half of Americans with a 671 credit score have an auto loan.
At a 671 credit score, you won’t qualify for the lowest rates and fees, but you should be able to get behind the wheel of your own car. In fact, there’s no real minimum credit score to buy a car. Even subprime borrowers can get approved, but interest rates can get notably high — and if they miss payments, the car, of course, serves as collateral.
You may still have trouble leasing a car with a 671 score, however. While there isn’t a set credit score needed to lease a car, borrowers with a 680 credit score or higher generally have more luck and get the best deals.
The Takeaway
Is a 671 credit score good? Yes, it is officially considered “good” on the FICO scale, though at the low end of the range. While you still won’t qualify for the lowest rates and fees and the best terms on mortgages, car loans, credit cards, and personal loans, you shouldn’t have trouble getting approved for these types of loans. Consider starting small, with a credit card or personal loan, and working to build your credit score before taking out a larger loan to buy a house or a car.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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5 Crucial Steps To Start Repairing Your Credit
Negative marks can stay on your credit report for seven or even 10 years. But if you are having trouble managing your finances, don’t panic.
Many people hit a moment at some point when they miss a payment or pay bills late. Or perhaps they face mounting credit card debt or the prospect of foreclosure. If you are grappling with any of these situations, you may wonder how long your credit report will reflect these issues.
While seven years is a typical time period for events to stay on your report and potentially impact your credit score, the time period could be considerably shorter. And as time passes, the effect of these “bad marks” will typically diminish.
Read on to learn more about what can lower your credit score, how long it can take to bounce back, and ways to manage your money responsibly, which can help build your score.
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A credit score gives a numerical value to a person’s credit history. It can help give lenders a big-picture look at a potential borrower’s creditworthiness. These scores (there isn’t just one) give lenders insight into how reliable a person might be when it comes to repaying their debt.
This can influence a lender’s decision on whether or not to loan a person money, how much money they are willing to lend, and the rates and terms for which a borrower qualifies.
Since credit scores are so widely used, it’s easy to see why some individuals may be interested in improving their credit scores. First, it might be helpful to understand the factors used to actually determine your score. Here’s a snapshot of what goes into a FICO® Score, since that is the credit score used by many lenders right now.
- Your payment history accounts for approximately 35% of your FICO Score, making it one of the most influential factors. Even just one missed or late payment could potentially lower a person’s credit score.
- Credit utilization ratio accounts for 30% of your score. Credit utilization ratio is your total revolving debt in comparison to your total available revolving credit limit. A low credit utilization ratio can indicate to lenders that you are effectively managing your credit. Typically, lenders like to see a credit utilization ratio that is less than 30%.
- The length of your credit history counts for 15%, and that may be a good reason not to close an account that you use infrequently. It might help add to the length of your history.
- Your credit mix accounts for 10% of your score. While not a good reason to go out and open a new line of credit, the bureaus do tend to prefer to see a mix of accounts vs. just one kind of credit.
- The last component, also at 10%, is new credit, meaning are you currently making a lot of requests for credit. The number of hard credit inquiries in your name could make it look as if you are at risk of financial instability and are seeking ways to pay for goods and services.
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Negative factors like late payments and foreclosures can hang around on your credit report for a while. Generally, the information is included for around seven years.
Bankruptcy is an exception to this seven year guideline—it can linger on your credit report for up to 10 years, depending on the type of bankruptcy filed. Bankruptcies filed under Chapter 7 can be reported for up to 10 years from the filing date. Bankruptcies filed under Chapter 13 can be reported for seven.
While a late payment will be listed on a credit report for seven years, as time passes it typically has less of an impact. So if you missed a payment last month, it will have more of an effect on your score than if you missed a payment four years ago.
These numbers are important to know when you are working to build your credit.
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Here’s a look, in chart form, at how long it takes for different negative factors to drop off your credit report.
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Checking your credit report can help you stay on top of your credit. You’ll also be able to make sure the information is correct, and if needed, dispute any mistakes. There could, for instance, be a bill you paid long ago on your report as unpaid, or perhaps account details belonging to someone else with a similar name erroneously wound up on your report.
There are three major credit bureaus — Equifax®, Experian®, and TransUnion®. Once a year you can request a copy of your credit report from each of the three credit bureaus, at no cost. You can visit AnnualCreditReport.com to learn more. Checking in with each report may feel a little repetitive, but it’s possible that the credit bureaus could have slightly different information on file.
If you find that there are discrepancies or errors, you can dispute the mistake. You’ll have to write to each credit bureau individually. Generally, you’ll need to send in documentation to support your claim. Once you’ve submitted your dispute letter, the bureaus typically have 30 days to respond.
It’s possible that a bureau will require additional supporting documentation, which can lead to some back and forth within or sometimes after the 30 days. It could take anywhere from three to six months to resolve a credit dispute, though some of these situations will take more or less time depending on complexity.
(Learn more: Personal Loan Calculator)
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Sometimes, resolving issues on a credit report isn’t enough to build a bad credit score. On the bright side, credit scores aren’t permanent. Here are a few ideas for helping you to build your credit.
Improve Account Management
If you’re struggling to keep up with accounts with a variety of financial institutions, it could be time to simplify. Take stock of your investments, debts, credit cards, and savings or checking accounts. Is there any opportunity to consolidate?
Having your accounts in one, easy-to-check location can make it simpler to ensure you never miss an alert or important deadline. Automating your finances and using your bank’s app to regularly check in with your accounts (say, a few times a week can be a good cadence) can make good money sense as well, helping you keep on top of payment deadlines and when your balance might be getting low.
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Did you know that your payment history (as in, do you pay on time) is the single largest factor in determining your credit score? Lenders can be hesitant to lend money to people with a history of late payments. So make sure you’re aware of each bill’s due date and make your payments on time. One idea? As mentioned above, you could set up autopay so you don’t even have to think about it.
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It could help to set a realistic budget that leads to a fair credit utilization ratio, meaning that your credit balances aren’t too high in relation to your credit limit. Some accounts will let you set up balance alerts that can warn you as you inch closer to the 30% guideline of the maximum you want to reach. Another option could be paying your credit card bill more frequently (for example, setting up a mid-cycle payment in addition to your regular payment).
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When it comes to paying off debt, having a plan can help. For example, using a credit card can be an effective way to build your credit history, but if not used responsibly, credit card debt can be incredibly difficult to pay off.
Not only that, it could end up impacting your credit score (say, if your credit utilization ratio creeps up above 30%, as noted above). As a part of your plan to build your credit after negative factors have occurred, you might consider putting a debt repayment plan into place.
Your finances and personal situation will be a major factor in the debt payoff plan that works best for you. If you need some inspiration, the methods below may be helpful to reference in your quest to pay off debt. If you decide that one of these options works for you, here’s how you might go about them.
(Learn more: Personal Loan Calculator)
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The snowball method of paying off debt is pretty straightforward.
- To put it into action, you would organize your debts from smallest to largest, without factoring in the interest rates.
- Then you’d continue to make the minimum payments on all of your debts while paying as much as possible on your smallest debt.
- When the smallest debt is paid off, you’d then roll that money into debt payments for the next smallest debt — until all of your debt is repaid.
This strategy is all about changing behavior and building in incentives to help keep you going. Starting with the smallest debt means you’d see the reward of paying it off faster than if you had started with the larger debt. While this method can help keep you motivated and laser-focused on eliminating your debt, it isn’t always the most cost effective, since it doesn’t take into account interest rates.
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The debt avalanche method encourages you to focus on your highest-interest debts first.
- Prioritize debts with the highest interest rates by putting any extra cash towards them.
- Continue to make the minimum payments on all of your other debts.
This technique could help save money in interest in the long run. And it could even help you pay off your debts sooner than the snowball method.
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The fireball method combines the snowball and avalanche methods in a hybrid approach designed to help you blaze through costly debt so you can focus on the things that matter most to you.
- The first step in this method is to go through all of your debts and categorize them as either “good” or “bad.”
- “Good” debts are those that tend to contribute to your financial growth and net worth; they also tend to have relatively lower interest rates. Good debt might be a student loan that helps you launch your career or a mortgage that allows you to own a home.
- Debts with high interest rates that don’t go towards building wealth (such as credit card debt) are often considered “bad.” With this method, you can list your “bad” debts from the smallest amount to the largest amount.
- Then you’d take a look at your budget and see how much money you have to funnel toward making extra debt payments. While making the minimum monthly payment on all outstanding debts, you’d direct the extra funds toward the bad debt with the smallest amount due.
- When that smallest balance is repaid in full, you’d apply the total amount you were paying on that debt to the next smallest debt. Then you’d continue this pattern, moving through each outstanding bad debt until they are all paid in full.
An important note: While you are moving through your higher-interest debts, you would still follow the normal payment schedule on your lower-interest debts.
By focusing on the debts with the highest interest rates first, this method could save you some change when compared with the snowball method. And, since you’re then targeting bad debt from the smallest balance to the largest, you could still benefit from the same psychological boost as you see your debt shrink, one payment at a time.
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Having financial goals could possibly help you streamline your efforts. If you’re actively working toward saving for, say, a down payment, you may feel less inclined to spend money elsewhere.
You could try setting short-term, mid-term, and long-term goals. In the short-term your goals might be as simple as tracking your spending and setting up a budget. Or perhaps saving for a big vacation that’s a year or so away. For mid-term goals, you might think about something a little further out, like buying a house or saving for a child’s education. Long-term goals are often things like (you guessed it) saving for retirement.
Writing down your goals and setting a time for when you’d like to reach them can help you set up your plan.
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If you are working on building your credit and want to pay down your credit card balances, one option could be a personal loan to consolidate that high-interest debt.
This article originally appeared on SoFi.comand was syndicated byMediaFeed.org.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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