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

Lenders use your credit score—a kind of financial report card. Better loan terms, reduced interest rates, and more financial possibilities all follow from a good credit score. Fair what then does a credit score of 659 exactly mean? Does work still need to be done; is 659 a good credit score? In this all-inclusive article, we will look at the nuances of a credit score of 659, its relevance, and how it appears to affect your financial life.

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

• Look at your credit report: Review your credit report looking for faults or inaccuracies. Check any variances you find to ensure your score is calculated appropriately.
  
• Consistent timely payment of your debts is one of the finest ways to steadily raise your credit score.
  
• Try to keep the amounts on your credit cards less than thirty percent of your credit limit. Using less credit can help your score.
  
• By varying your credit mix—that is, by having credit cards and installment loans—you will show solid credit management.
  
• Limit your applications for new credit. Opening many new credit accounts right away can drop your score. Apply for just modest new credit.
  
• Use credit wisely; only borrow what you can afford to back off from. Steer away from max-wise utilizing your credit cards or running into too much debt.
  

Frequently Asked Questions (FAQs)

With a 659 credit score, is borrowing possible?

A credit score of 659 does indeed let you still be qualified for a loan. Still, the loan rates and terms may not be as excellent as those given to individuals with superior marks.

For what period will my credit score rise?

A long process, your credit score increase depends on numerous factors like your credit history and frequency of using good credit practices. Many months might go by before one notices significant changes.

Will shutting previous accounts assist me in improving my score?

Closing past-due accounts might damage your credit score. These documents contribute to your credit history, which largely affects your score.

Is my credit score available for free?

Every year each of the major credit companies offers you a free credit report. Many websites also provide you free access to your credit score.

I have no credit history; how can I establish credit?

If you have no credit history, think about beginning with a secured credit card or authorizing a user on someone else's credit card. A good credit history will be established by careful credit utilization.

Will pay off debt for less than what I owe damage my credit score?

Settlement of debt, that is, paying off debt for less than you owe, might damage your credit score. One should check many options and consider long-term consequences before choosing this road.

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.

Ready to boost your credit score? Call +1 888-804-0104 now for the best credit repair services near you! Our expert team is here to help you achieve financial freedom and improve your credit. Don't wait—get started today!