What Does a 666 Credit Score Mean?

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In the UAE, a credit score is one of the most important criteria to assess an individual's creditworthiness. Credit scores range from 300 to 900 and hold significant importance as banks and other lending institutions utilise them to evaluate the financial risk of a borrower.

Higher credit scores increase the chances of credit approval and allow individuals to access the best financial opportunities and vice versa. For easy credit approvals at favourable terms, thus, it is crucial to maintain a good credit score.

In this article, we will understand what a 666 credit score means.

What Does a 666 Credit Score Mean?

Banks and financial institutions usually prefer a credit score of 700 or above to grant loans and credit cards. On the other hand, credit scores below 650 are viewed as poor and result in lower chances of credit card and loan approvals.

Credit Score (Range) Category Star Equivalent
300 to 540 Very low 1
541 to 650 Low 2
651 to 710 Medium 3
711 to 745 High 4
746 to 900 Very High 5

So if you have this question — “Is 666 a good credit score?” —  you can see from the table that a credit score of 666 is considered a ‘medium’ score. With this credit score, you would still be able to secure some credit facilities, although the approval will depend on your chosen bank. It’s worth noting, however, that banks may impose higher interest rates for customers with lower credit scores compared to those with better credit scores. As a result, it is critical to carefully review the norms of financial institutions before accepting any credit facility.

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Credit Cards for a 666 Credit Score

With a 666 credit score, you can explore both secured and unsecured credit cards with this medium score. Nonetheless, a secured credit card may be a more feasible choice as you may face higher interest rates with this score.

With secured credit cards, lenders generally require collateral deposits equivalent to the card's credit limit. This deposit acts as a safety net for the lender in case of non-payment, providing them the ability to use it to cover any unpaid balance.

Personal Loan for a 666 Credit Score

With a medium score of 666, you may find it comparatively easier to obtain a personal loan. However, it must be noted that lenders may levy higher interest rates since lending to people with such credit scores poses greater risks. Additionally, factors like the amount of the loan, the repayment period, and the monthly income may also impact the approval process.

Another point to note here is that while a 666 credit score may allow you to obtain a personal loan, the interest rates for personal loans are higher than other credit instruments. Thus, make sure to carefully assess the terms and conditions of the loan so that your monthly payments are affordable.

Homes Loans for a 666 Credit Score

Mortgage loans are usually granted to individuals with high and very high credit scores. Those with scores like 666 may encounter difficulties in obtaining one. Lenders tend to get more cautious due to the significant loan amount involved in mortgages, which may necessitate collateral or result in higher interest rates and lower loan amounts.

It is highly recommended to improve your credit score first to increase your chances of approval and securing better loan conditions.

Auto Loans for a 666 Credit Score

Obtaining a car loan with a credit score of 666 may be somewhat difficult, as lenders may offer restricted loan amounts with higher interest rates. In case you come across any hindrances while applying for a car loan, it is best to explore financial institutions that provide car loans backed by collateral.

Alternatively, you can keep working on boosting your credit score. By improving your credit score and exploring alternative loan options, you can secure a car loan with more favourable terms and avoid increased expenses.

Insurance Plans for a 666 Credit Score

Insurance providers often take credit scores into account while determining insurance premiums. A medium credit score, like 666, can result in higher premium payments, whereas a higher score may lead to more affordable insurance policies. Enhancing your credit score can, thus, assist you in obtaining better insurance rates and saving money over time.

Tips to Improve Your Credit Score

It is always recommended to maintain a high credit score to get easy approvals on loans and credit card applications. To help you reach there, we have mentioned some quicks tips that will help you enhance your 666 credit score:

Timely Bill Payments

In the UAE, paying bills promptly is the primary means of increasing your credit score. It constitutes up to 35% of your overall credit score, with your payment history from the previous 5 years being taken into account.

Late payments can be reported to credit bureaus, which can adversely impact your credit score. Consistently making timely payments reflects financial responsibility, which eventually enhances your credit score. Thus, make sure that you always pay your bills, including credit card and utility bills, on time.

Making the Right Usage of Credit

Effectively using credit is crucial to improve your credit score. Appropriate credit usage entails using credit responsibly and refraining from maxing out credit cards. Additionally, it also maintains low balances relative to the credit limit. This reflects your ability to manage credit effectively.

Clearing Out Existing Loans and Debts

Clearing existing loans and debts is a vital step in boosting your credit score. High levels of debt indicate poor financial management, which can have a negative impact on your credit score.

By repaying existing credit card debts, you can reduce your credit utilisation ratio, which is the amount of credit used compared to the total credit available. A lower utilisation ratio represents your responsible credit usage and ability to manage your finances efficiently, which can improve your credit score over time.

Additionally, when you clear out your loans, you also reduce your debt-to-income (DTI) ratio. As the name indicates, this ratio shows your total monthly debt obligations against your monthly income. With your DTI ratio being another factor that lenders check before deciding on your credit applications, keeping it on the lower side can assist you in new applications!

Avoid Multiple Credit Applications

Whenever you apply for credit, a hard inquiry is generated. This can have a negative impact on your credit score if done in excess. Additionally, multiple hard inquiries in less time may indicate financial distress and increase the chances of defaulting on credit obligations. Thus, you should try to limit your credit inquiries and apply for a new one only when necessary.

Keep in mind that soft inquiries, such as checking your credit score, don’t affect your credit score and can be done without affecting creditworthiness.

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How to Check Your Credit Score for Free?

When it comes to checking credit scores in the UAE, you must place a request to the al etihad credit bureau. However, you would be required to make a payment to obtain your credit score or credit report this way.

To avoid paying a fee, you can now check your credit score range via Policybazaar.ae for free! We have collaborated with AECB to help you check your credit score range without any fee. To know the process, refer to the following steps -

  • Open our website and click on the ‘Banking Products’ section.
  • Choose the ‘Check Free Credit Score’ option.
  • Enter your mobile number and proceed.
  • Provide all the essential details as prompted and submit it.

Note: The credit score will be sent to your registered email ID. 

In case you want to obtain your credit report, you must place a request to AECB. 

In a Nutshell

Individuals with a 666 credit score can improve their scores by following the methods mentioned above. Failing to do so can lead to challenges when attempting to obtain loans or credit cards. By implementing good credit habits, you can enhance your credit scores over time.

For further inquiries regarding credit scores, you can contact our customer support representative at 04 247 2904 or drop a mail at communication@policybazaar.ae.

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