Let’s face it—credit scores are one of those adulting challenges we wish came with an instruction manual. A 668 credit score is one of those middle-ground numbers that leave you wondering: “Am I doing okay, or should I be worried?”
You’re not alone in feeling this way. While a 668 score isn’t terrible, it’s also not stellar. It sits in that gray area where lenders might raise an eyebrow, but they won’t slam the door in your face either. So, what does this score really mean for your financial future? Let’s dig into the details and figure out how to turn that “meh” score into a “wow.”
What Does a 668 Credit Score Mean?
1. Credit Score Basics
Credit scores range from 300 to 850, with higher numbers signaling better creditworthiness. Here’s a quick breakdown:
- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very Good
- 800-850: Excellent
With a 668 score, you’re teetering on the edge of “Fair” and “Good.” It’s a respectable position, but there’s definitely room for improvement.
2. How Lenders View It
While a 668 score won’t lock you out of financial opportunities, you might not qualify for the best interest rates or premium rewards credit cards. Think of it as being invited to the party, but stuck sipping generic soda while others enjoy champagne.
How a 668 Credit Score Impacts Your Financial Life
1. Loan Approvals
You’re likely to qualify for personal loans, auto loans, and even mortgages, but expect slightly higher interest rates. Lenders see you as a moderate risk, so they hedge their bets with pricier terms.
2. Credit Card Options
While you won’t snag ultra-exclusive credit cards, you’re not limited to starter or secured cards either. Mid-tier rewards cards and low-fee options could be within reach.
3. Renting an Apartment
Landlords often check credit scores during the rental application process. With a 668 score, you’re in a decent spot, but providing a larger deposit might help seal the deal.
4. Job Applications
In some industries, employers review credit reports (though not scores). A 668 score likely won’t raise red flags, but keeping your report clean is still crucial.
Is a 668 Credit Score Good or Bad?
1. The Glass Half-Full
A 668 score is far from catastrophic. You’ve avoided the pitfalls of bad credit, and you’re just a few steps away from hitting “Good” territory.
2. The Glass Half-Empty
On the flip side, a 668 score suggests there’s work to be done. Late payments, high credit utilization, or limited credit history might be holding you back.
How to Improve a 668 Credit Score
1. Check Your Credit Report
Start by pulling your free credit report from AnnualCreditReport.com. Look for inaccuracies or outdated information that could be dragging down your score.
2. Pay Bills on Time
Payment history accounts for 35% of your FICO score. Even one late payment can have a significant impact, so set up reminders or automate your payments.
3. Reduce Credit Utilization
Your credit utilization ratio—the percentage of your credit limit you’re using—should ideally stay below 30%. If your total credit limit is $10,000, try to keep your balances under $3,000.
4. Avoid New Credit Applications
Each hard inquiry can lower your score temporarily. If you’re focused on improving your credit, limit new credit applications for a few months.
5. Consider a Credit Builder Loan
Offered by credit unions and online lenders, these loans are designed to help you establish a positive payment history while growing your savings.
A Personal Story: Turning 668 Into 720
A friend of mine, Lisa, had a credit score stuck at 668 for over a year. She was frustrated because she felt like she was doing everything right—paying her bills and avoiding unnecessary debt.
After a little digging, Lisa discovered she had a high credit utilization ratio. Her credit card balance hovered around 50% of her limit, even though she made regular payments. By cutting her spending and paying down her balance aggressively, she brought her utilization down to 20%.
Within six months, her score jumped to 720. Lisa now qualifies for better credit cards and even scored a lower interest rate on her car loan. Her story shows that small tweaks can lead to big wins.
Alternatives to Credit Cards for Credit Improvement
1. Secured Credit Cards
If traditional credit cards aren’t helping, a secured card can be a great alternative. Just make sure the issuer reports to all three credit bureaus.
2. Become an Authorized User
Ask a trusted family member to add you as an authorized user on their credit card. Their positive history can boost your score without requiring you to use the card.
3. Credit Counseling Services
For those feeling overwhelmed, nonprofit credit counseling agencies offer personalized advice and tools to help you manage your credit better.
When to Be Cautious with a 668 Credit Score
1. Avoid Predatory Lenders
Some lenders target individuals with fair credit, offering loans with sky-high interest rates or hidden fees. Always read the fine print.
2. Don’t Close Old Accounts
Length of credit history impacts your score. Closing old accounts can shorten your credit history and lower your score.
3. Beware of Quick Fixes
Promises to “instantly boost” your score are often scams. Genuine credit improvement takes time and consistent effort.
Final Thoughts: Why a 668 Credit Score Is a Good Starting Point
A 668 credit score isn’t the end of the road—it’s a stepping stone. While it comes with limitations, it also offers plenty of opportunities to grow. Whether it’s paying down debt, keeping your credit utilization in check, or simply being patient, the steps you take today can lead to a brighter financial future tomorrow.
So, embrace the journey. With a little persistence and some smart financial moves, that 668 score will soon be a thing of the past.
