A 670 credit score is generally considered good, falling in the lower end of the good range, which means you should qualify for most mainstream loans and credit cards but you may not always receive the very best rates. This score shows lenders you are responsible with credit, yet there is room for improvement that could save you real money over time.
What Lenders See in a 670 Credit Score
Lenders look at more than the three digits on your credit report, but that single number sets the tone. A score of 670 sits in the sweet spot where risk is acceptable to most banks. According to FICO, borrowers in the 670 to 739 bracket are rarely late on payments, with only about 8 percent falling 90 days behind within two years. That is a big improvement over the 28 percent delinquency rate in the fair category below 670. Because the majority of applicants with a 670 score repay as agreed, lenders often approve them for mortgages, auto loans, and larger credit lines.
The downside is that you are still grouped in the lower section of the good tier, so automated pricing models are likely to attach a risk premium compared with scores above 740. In practice this translates into a higher annual percentage rate or a slightly bigger down payment requirement.
How a 670 Score Compares Across Major Scoring Models
A 670 FICO score and a 670 VantageScore are not always identical in meaning because each model handles data a bit differently. Still, both place 670 in the good bracket.
| Scoring Model | Good Range Start | Very Good Range Start | Average US Score 2023 |
|---|---|---|---|
| FICO | 670 | 740 | 718 |
| VantageScore 4.0 | 661 | 781 | 701 |
FICO is the model used in about ninety percent of lending decisions (FICO press room, 2023), so your odds of approval hinge mostly on that figure. VantageScore, used by many free monitoring apps, tends to run a few points higher for the same underlying credit file. If your profile shows 670 in VantageScore, your FICO could be closer to 660 and you may want to verify before applying for a major loan.
Common Factors Keeping Scores in the High 600s
For many consumers, breaking out of the upper 600s stalls because of one or two recurring issues.
A large share of people with a 670 score carry card balances above 30 percent of their limit. Utilization is responsible for about thirty percent of your FICO score, so dropping balances even modestly can pay off quickly.
Late payments in the past two years also weigh heavily. One missed payment can cost between 60 and 110 points according to Equifax consumer education, and it takes time for those wounds to heal.
Another hidden anchor is a thin file. If you have only one or two open accounts, the scoring algorithm has less data to trust, capping your potential. Adding a low fee credit builder loan or a secured card can thicken the file and move the needle upward.
Practical Ways to Move from Good to Very Good
A jump from 670 to 740 might sound daunting, yet many borrowers hit that target within a year by focusing on a few high impact actions.
- Pay card balances down to under ten percent of the limit before the statement closes. Even if you leave a small balance to show usage, low utilization drives scores higher.
- Put every bill on autopay to avoid accidental late payments. Consistency is more powerful than any clever hack.
- Ask for credit line increases. A larger limit lowers your utilization ratio without spending a dime.
- Keep old accounts open unless a fee is involved. Length of credit history makes up fifteen percent of FICO, and closing aged accounts can erase valuable points.
- Diversify credit types. Adding an installment product, such as a credit union share secured loan, can help your mix of credit, worth about ten percent of your score.
These steps cost little or nothing yet compound over months. Many users report a twenty to forty point lift within six billing cycles when they combine low utilization with on time payments.
Impact on Borrowing Costs: Real Life Examples
Interest rate differences might seem small on paper, but they add up dramatically over a loan term. The table shows average rates quoted by national lenders in March 2024.
| Product | Score 670 | Score 740 | Extra Paid over Term |
|---|---|---|---|
| 30 year fixed mortgage | 7.15 percent | 6.55 percent | 0.60 percent extra equals about 38,000 dollars on a 300,000 dollar loan |
| 60 month new auto loan | 6.99 percent | 5.89 percent | 1.10 percent extra equals about 1,400 dollars on a 30,000 dollar loan |
| Major rewards credit card | 24.99 percent variable | 20.99 percent variable | Higher ongoing balance costs hundreds per year |
Data compiled from Bankrate weekly lender survey. Even a fraction of a percentage point has a noticeable effect, especially on mortgages. Moving from 670 to the mid 700s can free up cash you could invest or save instead of handing it to the bank.
Myths and Truths About Credit Improvement
Some advice floating around social media sounds tempting but can hurt more than help.
Credit sweeps that promise to erase accurate negative items for a fee are often scams. Only inaccurate data can be disputed legally and the process is free through the credit bureaus.
Another myth is that carrying a small balance month to month boosts scores. The truth is your utilization is calculated at the statement date, not after you pay. You can pay in full and still show usage.
Finally, many believe closing a paid card helps because it removes temptation to spend. That closure can shrink your overall credit limit and raise utilization ratios overnight. If an account is fee free, leaving it open is usually smarter.
Frequently Asked Questions
What percentage of people have a 670 credit score?
Experian reports that about 18 percent of US adults fall in the 670 to 699 range.
Can I buy a home with a 670 credit score?
Yes. Many conventional lenders approve mortgages starting at 620, and government backed programs such as FHA often accept even lower. A 670 score should qualify if income and debt ratios meet guidelines.
Will paying off a collection raise my score?
Most modern scoring models ignore paid collections, so paying off an outstanding collection can raise a 670 score once the account is marked paid. Always request a letter of deletion if possible.
How long does it take to move from 670 to 700?
With lower utilization and perfect payment history, some users make the jump in as little as three months, though six to twelve months is more common.
Does checking my own score hurt it?
No. Personal checks are soft inquiries and have zero impact on your score.
Is a 670 score enough for top tier credit card rewards?
Some premium cards target applicants with 700 plus scores, but several no fee cash back cards approve around 670. Always read the issuer’s public guidelines before applying.
Conclusion
A 670 credit score opens many financial doors, yet climbing just a bit higher can unlock cheaper rates and richer rewards. Share this guide with anyone juggling the same question and drop your own experiences or tips in the comments below.
