What Can I Get With 670 Credit Score?

Are you getting ready to apply for a mortgage and are concerned about your credit score? Your credit score can be a very important determining factor when it comes to the rate and costs of your mortgage, so it’s important to not go into the situation blindly.

So, what can you get with a credit score of 670? If you have a credit score of 670, you’ll likely qualify for a conventional mortgage with a loan-to-value ratio of up to 95%. This means that you can borrow up to 95% of the purchase price of your home. However, your interest rate will be higher than someone with a higher credit score.

We’re going to cover some helpful tips that you should follow if you want to have success getting the right mortgage for you. We’ll also put your mind at ease about some common concerns for those with a 670 credit score.

Types of Loans You Can Get With a 670

With a 670 credit score, you should be able to get a wide variety of loans. It’s great to have options so that you can choose the best option that is available for your situation.

Here are the loans that you will be able to choose from with a 670 credit score.

USDA Mortgage

A USDA mortgage is backed by the United States Department of Agriculture. This type of loan is typically for those who want to buy homes in rural areas. One of the benefits of this type of loan is that there is no down payment required.

You may also be able to get a lower interest rate with this type of loan. If you have a 670 credit score, you should be able to get approved for this type of loan with ease. The minimum score for this loan is 640.

FHA Mortgage

An FHA mortgage is a loan that is backed by the Federal Housing Administration. This type of loan is typically for those who may not have the best credit score or may not have a large down payment saved up.

With an FHA mortgage, you may be able to get approved with a credit score as low as 580. However, the higher your credit score is, the better chance you will have of getting approved and getting a lower interest rate.

If you have a 670 credit score, you should have no problem getting approved for an FHA mortgage.

Conventional Mortgage

A conventional mortgage is a loan that is not backed by the government. This type of loan typically has stricter guidelines, but it can be a great option for those who qualify.

One of the benefits of a conventional mortgage is that you may be able to get a lower interest rate. If you have a good credit score and a large down payment saved up, you may be able to get approved for this type of loan.

If you have a 670 credit score, you will be right at the minimum score for this type of loan. If you’re able to keep it above 670, you shouldn’t have too much of a problem getting approved, though you may have to explore a few different lenders to find a good rate.

Here’s a rundown of some of the other things you might be able to get with a 670 credit score:

• A mortgage loan with a competitive interest rate
• A car loan with a competitive interest rate
• A student loan with a competitive interest rate
• A personal loan with a competitive interest rate
• Credit cards with good rewards programs and low interest rates
• Stores cards and other retail cards with good discounts and rewards programs

Determining Credit Factors

There are a number of factors that determine your credit score, and they are not always easily understood. Here are some factors that go into determining your eligibility for opening new lines of credit, such as a mortgage.

1. Payment history – This is the most important factor when it comes to your credit score. Lenders want to see that you have a history of making on-time payments. If you have missed payments or have a history of late payments, it will hurt your score.

2. Credit utilization – This is the second biggest factor that goes into your credit score. Your credit utilization is the percentage of your credit limit that you are using. For example, if you have a credit card that has a $4000 limit and you have an open balance of $400, your credit utilization would be 10%.

Ideally, you want to keep your credit utilization below 30%. If you have a 670 credit score, you should be able to keep your credit utilization below 30% and still have a good score.

3. Length of credit history – This is the third biggest factor that goes into your credit score. The longer you have had credit, the better it is for your score. If you have a 670 credit score, you probably have a good length of credit history.

4. Credit diversity – This is the fourth biggest factor that goes into your credit score. Your credit mix is the different types of credit that you have. For example, a mix of credit can be a mortgage, an auto loan, and a credit card.

Help Approval Odds

If you want to increase your chances of being approved for your ideal mortgage, there are some simple steps to follow. Here are some tips you can use to improve your odds.

1. Don’t open more credit –  One mistake that people make is opening up new lines of credit before they apply for a mortgage. This can actually hurt your score and lower your chances of getting approved.

2. Check your credit report – Another thing you can do is to check your credit report for errors. If you find any, dispute them. This can help improve your score and give you a better chance of getting approved.

3. Save up for a down payment – The third tip is to save up for a down payment. The more money you have saved, the better chance you will have of getting approved.

4. Don’t close old credit cards –   One mistake people make is closing old credit cards. Credit age is an important determining factor for your credit score. Closing old cards could bring down your age of credit and lower your credit score.

Final Thoughts

If you have a 670 credit score and are looking for a mortgage, the chances are that you’re going to be able to get approved for your choice of loan. Make sure to follow our tips for improving your approval odds and avoiding damage to your credit score.