668 credit score: A guide to credit scores
Quick insights
- A 668 credit score is labeled as either “fair” or “good” depending on which credit scoring model you’re using.
- The higher your credit score, the better your chances can be for getting approvals and more favorable interest rates.
- You can improve your score with time, consistency and healthy financial habits.
A credit score provides lenders with a snapshot of your creditworthiness, but remember that this number isn’t fixed. It can fluctuate with some shifts in your financial life and habits. Let’s take a moment to explore what a 668 credit score means in more detail.
Understanding a 668 credit score
A 668 credit score, depending on the credit scoring model used, can either be considered fair (though right on the verge of good) or just within the good category. See below the credit scoring models and their ranges.
As of May 2024, VantageScore® ranges are:
- Excellent: 781 to 850
- Good: 661 to 780
- Fair: 601 to 660
- Poor: 500 to 600
- Very Poor: 300 to 499
As of May 2024, FICO® score ranges are:
- Exceptional: 800+
- Very Good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 579 and below
Individuals with this score may face challenges on their financial wellness journey, but this score doesn't necessarily indicate poor credit behavior. It could mean that you need to further build your credit history or make some tweaks to your current credit behavior. While a 668 score is far from the range considered excellent, with a disciplined approach to on-time payments and other healthy financial habits, you may have an opportunity to see your score rise.
Buying a house with a 668 credit score
Purchasing a home with a 668 credit score may be possible; however, it may be more challenging than if you had an excellent credit score. Some lenders may require a larger down payment, charge higher interest rates or have stricter loan terms.
Whatever you decide, carefully review and compare different lenders and loan options to find your best fit for your specific circumstances. Even though credit scores are important, they are just one of several factors lenders use when approving home loans.
Getting a car loan with a 668 credit score
Purchasing a car may be possible with a 668 credit scored; however, different dealerships and lenders may use different credit scoring models and different scales to make their own loan decisions, which could impact your loan terms and approval odds. Even with a “good” credit score, you may be declined, subject to higher interest rates or need to provide a larger down payment than if you had a higher credit score.
To help increase your chances for approval, it is usually beneficial to add a co-signer to the loan—if the lender allows—to share financial responsibility. All applicants should take note that while important, your credit score is just one of many factors that lenders take into account when approving a loan.
Helping improve your 668 credit score
Improving your credit score can increase the odds of being approved for more loans with more favorable interest rates.
Additionally, if you're renting a house or an apartment, a higher credit score can help your lease application process go more smoothly, as many landlords may ask for a it as a way to evaluate the creditworthiness of potential tenants.
If you want to help improve your score, consider the following strategies:
- Pay your bills on time. This might be self-explanatory, but because payment history is a major factor used to determine your credit score, it is essential to do consistently. Improving your payment history can help improve your credit score over time.
- Lower your credit utilization ratio. This ratio is the amount of credit you use against your total available credit. The lower the ratio, the better your chances are of improving your credit score. Try to lower your ratio to about 30% or less.
- Monitor your credit reports. Your credit report is a broader picture of your credit behavior and overall credit standing. Reviewing these reports and looking for any potential errors and suspicious activity is a healthy financial habit.
- Consider enrolling in Chase Credit Journey®. This is a free online tool that anyone, including non-Chase cardmembers, can use. You may want to think about using the credit score improvement feature, where you can follow a personalized action plan provided by Experian™.
Additional tips for managing credit wisely
As you continue to implement the above strategies, you may want to keep these tips in mind for helping you to manage your credit:
- Consider not closing old accounts. You may feel inclined to close a credit card account that you rarely use, but closing it can negatively impact your credit age and mix, as well as credit utilization, which can hurt your credit score. Instead, consider keeping the account open and use the card every once in a while so that it remains active.
- Lower your debt-to-income ratio. Whether you have credit card debt or loans you still need to make payments towards, do your best to reduce your overall debt to help improve your debt-to-credit ratio. Consider creating a debt repayment plan, prioritizing high-interest debt and setting up automatic payments to avoid late payments.
- Make a budget and stick to it. Creating a budget is one thing—following it is another. A budget can create more visibility into your spending habits, areas where you can cut and places where you could save. It may take some time adjusting to a budget, but these small changes over time can make a major impact.
In conclusion
Credit management is essential when it comes to maintaining and further improving your credit score. The work you put in today can have a major impact on the financial opportunities available to you down the road. A higher credit score could help you save on interest rates as well as get approvals for that next big purchase. By following some of the strategies and tips above, you can take control of your credit and financial wellness.
