Is a Credit Score of 690 Good or Bad? Here’s What It Means for Your Credit

If you’re wondering whether a credit score of 690 is good or bad, you’re not alone. A credit score of 690 falls within the “fair” range, typically between 580 and 669, with 700 or higher considered “good.” While a 690-credit score isn’t the highest, it’s certainly not bad either. In fact, it shows you’ve been managing your credit responsibly, but there’s still room for improvement.

In this post, we’ll break down what a 690-credit score means for your credit, how it can affect your financial future, and how you can improve it for better financial opportunities.

The Truth About a Credit Score of 690: Is It Good or Bad for Your Financial Future?

A 690-credit score is considered “fair” by most credit scoring models, such as FICO and Vantage Score. It’s not the highest score, but it still positions you better than many others who may be struggling with poor credit scores. So, is a 690-credit score good or bad?

Is 690 a Good Credit Score?

A 690-credit score is good enough to secure access to a variety of credit products, such as credit cards, personal loans, and mortgages. However, you may not qualify for the most favourable interest rates and terms available to borrowers with higher scores (typically 700+). Lenders will view you as a moderate risk, meaning they may approve your application but at higher rates compared to those with excellent credit.

What Does a 690 Credit Score Mean for Your Financial Future?

A score of 690 places you in a middle ground. It’s a solid score that signals to lenders that you are generally trustworthy, but it doesn’t yet give you the competitive edge you need for the best interest rates. Your financial future can improve with a few changes to your credit habits. For example, by paying down debt or improving your credit utilization ratio, you could easily raise your score and unlock more favourable financial opportunities.

Is a Credit Score of 690 Good or Bad? Find Out How It Affects Your Credit

So, what does a 690-credit score mean for your ability to access credit and your finances in general? Here’s a breakdown:

Access to Credit

With a 690-credit score, you can expect to qualify for most types of credit. This includes personal loans, mortgages, and credit cards. However, the approval might come with higher interest rates compared to those with scores over 700. While your score is good enough to get credit, you’ll likely pay more in interest over time, which can impact your long-term financial goals.

Interest Rates and Loan Terms

The higher your credit score, the lower your interest rates will be. While a 690-credit score can still help you qualify for loans, the interest rates will likely be higher than those available to someone with an excellent credit score (typically 750+). For example, on a $10,000 loan, someone with a score of 690 might pay an interest rate of 7%, whereas someone with a score of 750 might pay only 4%. Over time, that difference can add up to hundreds or even thousands of dollars.

Credit Cards and Other Financing Options

When it comes to credit cards, a 690-credit score will likely grant you access to a number of basic credit cards, but rewards cards with better benefits may be out of reach. You may also face higher interest rates and lower credit limits than individuals with higher scores. For consumers looking for the best credit cards with perks like travel rewards or low-interest options, a 690 score may not suffice.

A Credit Score of 690: Good or Bad for Your Credit? Here’s the Truth

So, is a 690-credit score good or bad? The truth is, it’s somewhere in the middle. It’s certainly not bad; it’s a score that many consumers would love to have. However, there are significant advantages to improving your score further. If you’re aiming for the best loan terms, lower interest rates, or higher credit limits, moving your score into the “good” or “excellent” range will be key.

Advantages Credit Score of 690:

• Access to Credit: A 690 score grants you access to a variety of financial products.
• Better Terms than Poor Credit: You’ll face fewer obstacles than someone with a much lower score, allowing you to get approved for credit and loans.
• Opportunities for Improvement: A score of 690 is close to the “good” range, so with a few strategic adjustments, you could improve your score further and secure better financial opportunities.

Disadvantages Credit Score of 690:

• Higher Interest Rates: While you can still access credit, expect to pay higher interest rates than those with better scores.
• Limited Credit Card Options: You may not qualify for the best credit card offers, such as those with higher rewards or lower APRs.

Understanding Your Credit Score: Is 690 Good or Bad for Your Financial Health?

Your credit score affects more than just your ability to borrow money; it can impact your financial health in numerous ways. A score of 690 indicates that you’ve made strides in managing your finances, but there is still room for growth. Here’s how it affects your financial health:

Financial Health Indicators:

• Moderate Risk to Lenders: With a 690 credit score, lenders see you as a moderate risk. This is a great starting point, but there’s still room to move into a lower-risk category, which would unlock better financial terms.
• Room for Improvement: A 690 credit score is just shy of “good.” With some effort, such as paying off high balances and avoiding late payments, you can raise your score and secure even better financial opportunities.
• Long-Term Financial Health: Having a solid credit score allows you to make larger purchases, such as a car or home. As you improve your score, you’ll have more access to loans with better terms, helping you build long-term financial stability.

Is Credit Score of 690 Good Enough for You?

A credit score of 690 puts you in a good position, but it’s not ideal if you’re hoping to access the best rates and terms on loans or credit cards. There’s still room to improve and doing so can have significant benefits for your financial future.

Ready to Improve Your Credit Score?

At Cents Savvy, we specialize in credit repair services designed to help you improve your credit score. Whether you’re looking to remove collections, dispute errors on your report, or need expert advice on how to boost your score, our team is here to help you regain control of your financial future. Contact us today to get started on the path to better credit.