Credit rating is a numerical value which indicates to the lender or financial institution whether credit applications of an individual should be approved or rejected. In essence, credit score works hand in hand with loans, credit cards, mortgages, and other loans for it is the more you have the best scores, the better the chances of getting a loan. A credit score is a measure of the creditworthiness of an individual that is from 300 and up to 850, the highest.
At 24 years old you are a young adult and what you choose to do financially will affect your adult life. Credit scores are used to determine who qualifies for which interest rate, who gets a car or a house, and who gets an apartment.
Let’s find out what is having a 665 credit score at age 24 – is it good or bad? And what can be done to better a credit score?
This article will take a new approach and explain to the readers what a 665 credit score implies.
Exactly, a credit score of 665 is regarded as a Fair credit score. Umumnya, skor kredit dalam Penskoring Rata-rata mulai dari buruk (300-579),(setara dengan rendah atau CBA), Sedang (580-669), Baik (670-739), Sangat Baik (740-799), dan-neutral/tinggi atau A+ (800-850). A 665 credit score means that you fall under the Fair credit category.
Below are some factors that contribute to your credit score:
1. Payment history (35%): What I mean by this is the part where you pay your bills at or after the due date. It is a primary and the most important component that is measured in determining your credit score. Delays in your payment, bankruptcy, or the foreclosure of your home will affect your score.
2. Credit utilization (30%): For instance, this is the ratio of how much of your credit limit you’ve consumed at this time. Credit utilization in question negatively affects scores, and maxing out of credit cards is not desirable.
3. Length of credit history (15%): Your credit account age is favorable to your score – the longer your credit history the better.
4. New credit inquiries (10%): It has been observed that frequent applications for credit lowers your score.
Is a 665 credit score bad at 24 or good?
Thus, the credit score of 665, which a 24-year-old man has, borders to reflect the “Fair” credit score label. On the one hand, as we can see, it is not a bad score, however, on the other hand, it is not an excellent score. This is because at this age one can be able to get a fair credit score but this will not enable one to qualify for low interest rates and a reasonable amount of loans or credit cards as well as mortgages.
Having a 665 credit score at 24 years old can make it more difficult to:
1. Making a credit card or loan application.
2. Still, regarding commercial transactions, it is possible to hope for a low interest rate on loans.
3. Become a member of residency with some apartment owners and property managers.
But still, as of right now, at 24 years old, one has a 665 credit score – and that is not the worst thing in the world. From this, it implies that with proper dealing with resources, you can be able to see an improvement in your credit score after some time.
Tips for raising a 665 credit score
It is a process that will take time and everyone needs to ensure they work hard to; maintain a good credit score. Here are some steps you can take to improve your 665 credit score:
1. Pay your bills on time: This is the most crucial aspect of the computation of your credit score. To avoid missing your payment, always schedule it as an automatic payment, set an alert, or choose a reminder.
2. Keep your credit utilization low: To prevent your utilization ratio for your credit cards from exceeding 30% try as much as possible. If you have a credit card with a limit of $1,000 do not use more than $300.
3. Don't close old credit card accounts: Ideally, the best you can do is keep open the old credit cards because it counts to the average credit age but creates more credit limit. Pay off all your accounts as soon as possible because closing accounts has negative impacts on your credit utilization and score.
4. Limit new credit applications: While applying for credit, the creditor pulls a copy of the credit report and this goes as a hard inquiry. Appearances do not win arguments, & leaving your credit unused for too long can lead to its utilization’s negative effects. Borrow credit only when you have to.
5. Check your credit report for errors: It also means that wrong details on your credit report are bad for your score. Make Sure Their No Credit Report Is In Their Credit Name And If They Found Any Discrepancy Between The Two Then Demand The Same.
6. Consider becoming an authorized user: In case you have difficulties with the approval they do suggest becoming an authorized user of a card with a good credit score of a friend. It can help you raise your credit score.
7. Consider a secured credit card: In case you are struggling to secure a standard credit card you should consider applying for a secured credit card. Secured credit cards require you to deposit cash with the company and that amount is your credit line. Paying timely and regularly on a secured card means that after some time the holder will have a good score.
8. Wait it out: A credit score can take some time to change. To a certain extent, credit scores will take some time to improve from fair to good. Just ensure that you make the right financial decisions and your credit score will skyrocket.
Conclusion
A credit score of 665 is classified as being a ‘Fair’ credit score which when one is 24 years of age may limit one’s ability to secure good interest rates attractive credit card loans, and mortgage rates. Aware that it is possible to lower the credit score if you use credit wisely and manage the money received properly, but is quite worth knowing.
Remember not to solely rely on credit score and you should always be aware that credit score is one of many factors that affect their decision to grant loan applications to creditworthy to. Always ensure you make the right decisions when it comes to money because the credit score is always determined at some point in time. If you remain relentless and work on achieving better credits for all future uses, you can achieve better numbers in your credit score.