Is a 673 credit score good? The short answer is yes. The long answer is yes, but it isn’t as good as you think. Between 670-739 is considered a “good” credit score, but it’s not the greatest. The most excellent credit score would be somewhere between 740 and 850, which requires a severe amount of dedication and monitoring of your credit score.
At Coulter Credit Repair, we want to ensure that you understand what a 673 credit score is and if it is a good score.
What Does a Credit Score Do?
Your credit score is your “first impression” when taking out loans, lines of credit, or refinancing existing loans. Using that score, loan companies (banks, credit unions, and other financial institutions) determine if you are a client they can loan money to and at what level of risk. Your credit score is verified whenever you apply for a credit card, car loan, or anything that will eventually require a promise of repayment.
To put it bluntly, your credit score indicates your reliability as a loan recipient.
Why Do I Need to Increase my Credit Score?
If you have a 673 credit score and ask questions such as “is 673 a good credit score to buy a car” or “can I buy a house with a 673 credit score,” the most straightforward answer is maybe. A 673 credit score is considered good, but depending on whom you are applying for credit with, that 673 can come with a caveat.
What does that mean? It means that when you apply for a new car loan with your 673 credit score, the loan company (the group lending you the money) will calculate the risk-reward of your loan based on your credit score. They will ask themselves, “is 673 a good credit score for this transaction?” and then extend an offer. If they approve of your 673 credit score and deem it reliable, you will receive your loan with an interest rate appropriate to the risk-reward of lending you the money. They will deny your loan if they see your 673 credit score and deem it unreliable. The same principle applies to housing loans, where the financial institution that is loaning you the money to make that purchase wants to ensure they are not throwing it at someone who will run off with it or not pay them back.
There are other complexities and nuances to your credit score, but if you are asking, “is 673 a good credit score to buy a car” or “can I buy a house with a 673 credit score” then keep in mind that is a strong maybe. Some companies are more lenient than others but will charge a higher interest rate to ensure they do not lose on the transaction.
How Do I Raise My Credit Score?
This is where the catch-22 of credit comes in. To raise your credit score, you need active loans you consistently pay on time and to the specifications of your loan contract. How do you get these active loans? With a good credit score. But how do you get a good credit score? By paying active loans.
Do not let the confusing, catch-22 nature of credit bar you from living the life you want. It can be challenging, especially if you are doing it independently. That is why our experts at Counter Credit offer free consultations to help you understand and raise your 673 credit score.
