Is a 690 Credit Score Good? In the complex landscape of credit scores and mortgages, an empowered consumer is a bank’s biggest challenge. At the heart of that power is knowledge and understanding—something that, unfortunately, many consumers lack when it comes to credit scores and their impact on securing a mortgage.
For many, a credit score of 690 may seem like a middle-of-the-road figure, but in truth, there are strategies and secrets that can turn this seemingly average score into a key for unlocking potentially more favorable mortgage terms. Join us as we delve into the arcane world of credit scores, specifically the 690 credit score, revealing tips and tricks that banks would rather you didn’t know.
Whether you’re aiming for your first home or refinancing an existing mortgage, this inside track could be the tool you need to better navigate your financial journey. Get ready to empower yourself with information that banks might just wish remained secret.
1. Is a 690 Credit Score Good?
A 690 credit score falls under the “fair” category, which is just one step below the “good” credit score range of 670-739. While a 690 Credit Score might not be your ticket to the best loan deals and interest rates, it’s still better than having poor credit, and you do have some options available to you.
– Many lenders will work with you
– Moderate interest rates
– Access to credit cards and loans
– Limited credit card rewards and perks
– Higher interest rates than good or excellent credit scores
– May miss out on the best loan deals
2. The Credit Score Spectrum: Understanding the FICO Scale
FICO scores range from 300 to 850 and are based on five factors:
1. Payment history (35%)
2. Amounts owed (30%)
3. Length of credit history (15%)
4. Credit mix (10%)
5. New credit (10%)
Here’s a quick breakdown of the FICO credit score ranges:
- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very Good
- 800-850: Excellent
For a more detailed look at various credit score ranges from 600 to 860, visit the Mortgage Rater credit score library for specific articles and guidance tailored to each range.
3. Credit Cards for 690 Credit Score: Finding the Perfect Fit
Having a 690 credit score means you have a fair chance of getting approved for credit cards, but your options may be limited. Credit card companies divide applicants into tiers or categories based on credit score ranges.
Best Options for a 690 Credit Score Credit Card:
1. Unsecured cards for fair credit
2. Secured cards
3. Retail store cards
4. Student credit cards
Credit Card Features to Look For:
1. Decent rewards, such as cash back or points
2. No or low annual fees
3. Introductory 0% APR offers
4. Credit-building features, like automatic credit limit increases and free credit score monitoring
4. Securing a Car Loan with a 690 Credit Score: Cruise Your Way to Approval
When it comes to auto financing, a 690 credit score may not guarantee the best interest rates or loan terms, but it doesn’t mean you can’t find a good deal. While rates for car loans tend to be more favorable for borrowers with higher credit scores, don’t despair just yet. Below are some tips to secure a car loan with a 690 credit score:
- Shop around: Don’t just settle for the first loan offer you receive. Instead, compare rates from multiple lenders to find the best deal for your specific situation.
- Improve your credit before applying: If possible, take steps to improve your credit score before applying for a car loan. This could mean paying down your balances, getting current on any delinquent accounts, or removing inaccuracies on your credit report.
- Make a down payment: A significant down payment can offset the higher interest rates typically offered to applicants with fair credit scores. The more you put down, the less risky of a borrower you appear to be.
5. Is a 690 Credit Score Good Enough to Buy a House?
While a 690 Credit Score might not be ideal, it’s often enough to qualify for a mortgage. Keep in mind that your specific situation and the loan type you choose are critical factors in determining your eligibility. Here are some things to consider when thinking about buying a house with a 690 credit score:
- Loan options:
- Conventional loans: These typically require a higher credit score (usually 620+) and a down payment of at least 3%.
- FHA loans: With lower credit score requirements (sometimes as low as 500) and a down payment as little as 3.5%, FHA loans are a popular option for first-time homebuyers or those with less-than-stellar credit.
- Interest rates: As with car loans, higher credit scores typically attract lower interest rates for mortgages. However, there are still competitive options available for those with fair credit, such as FHA loans or adjustable-rate mortgages.
- The role of down payment: A larger down payment can help you secure better interest rates and terms on your mortgage. Aim for at least 10% to 20% down to increase your chances of approval and potentially lower your monthly payment.
Check out the Mortgage Rater mortgage calculator to help you determine how much home you can afford.
Credit scores were created by the Fair Isaac Corporation in the 1950s and have become a standard measure of creditworthiness. In 1956, engineer Bill Fair and mathematician Earl Isaac developed the first credit scoring system, which they named FICO.
As per a recent study by Experian, the average FICO credit score in the United States has reached 711 in 2021, the highest it’s been in over a decade.
Do you know what the term FICO stands for? It’s simply a combination of the founders’ last names: Fair and Isaac Corporation.
Q: What can I do to improve my 690 credit score?
A: Here are some credit-building tips to help bring your credit score up to speed:
- Pay all your debts on time, every time
- Keep your credit card balances low
- Don’t close your oldest accounts, even if you’re not using them
- Avoid applying for multiple loans or credit cards at the same time
- Review your credit report regularly and dispute any errors you find
Q: How do lenders interpret my 690 credit score?
A: Lenders will view you as a fair credit risk. While you may not receive the best interest rates and terms available, lenders may still be willing to extend credit to you — albeit with more caution.
Q: How fast can I expect my credit score to rise after making improvements?
A: Credit scores might improve with each positive change you make, but it depends on the factors affecting your credit report. The more significant the improvement, the quicker you may see your score rise. However, it can take several months or even years to establish strong credit.
In conclusion, a 690 credit score might not get you the lowest rates and most lucrative rewards, but it’s not the end of the road. With a little effort and careful planning, you can bolster your credit score and buy that house or car you’ve been dreaming of, simply by making smart financial decisions and staying disciplined.