What Does a 680 Credit Score Mean?
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What to Expect With a 680 Credit Score?Are you one of the 21% of Americans who have credit scores in the good credit range, with a 680 credit score? Is it good enough to get the loan that you’re after? According to the credit range model distributed by Experian, 680-739 is considered to be a good credit score range. If you are wondering whether to apply for a loan or credit card debt, stick around to learn more about your score and what it brings to the table. In this article, let us explore the possibilities and limitations of a 680 credit score.
How to Check Credit Scores?If you don’t know your credit score or haven’t checked it recently, you can check it free from any of the three major credit bureaus- Experian, Transunion, and Equifax. The reason why a credit score is the major deciding factor in a loan application and issuance of credit cards is that the score directly aids lenders in determining the creditworthiness of the consumer.
Credit Scoring ModelThe credit scoring model is a procedure or template a credit bureau uses in the analysis of the creditworthiness of a person to receive credit. The bureaus issue the scores based on these credit reports. A credit report or credit file contains the borrower’s personal information, social security number, bank details, type of accounts, credit cards owned and used, transaction details, the repayment history of the debt owed, etc.
Where Does a 680 Credit Score Lie in the Credit Score Range?
Credit score range
The credit range is a representation of the score ranking and determines the reliability of your credit report. The lender, bank, or credit union determines the credit limit, loan term, interest rate, and the type of loan available for your credit score range. Though the lending factors vary among creditors, most lenders refuse bad credit scores against fair approval odds.
Applicable Loan Types for 680 Credit ScoresLet us look at the different types of loans and the credit score requirements of each type to get an overview of where the 680 score stands. Home Loans: The minimum credit score requirement for home loans in the US is 620 and above. If you are looking for home financing options, you could apply for an FHA (Federal Housing Administration) loan to more easily qualify for a loan with a lesser down payment, interest rates and other utilities. Car Loans: No minimum score is needed to apply for a car or motorcycle loan. Before you apply for a loan, choose a bike that would fall within the credit limit corresponding to your score and the interest rates proposed by the credit lender. Mortgage Loans: You need a credit score of 620 or higher to get qualified for a mortgage loan. With a 680 credit score, you will likely acquire a favorable loan term. Boat Loans: Credit scores of 670 and above generally qualify for a boat loan. Usually, credit scores above 700 will get you desirable loan terms from lenders and credit unions. Personal loans: You need a minimum of 670 and above to qualify for a personal loan. If your credit score is in the fair credit score range, you need to boost it to the good credit score range.
Benefits of Having a 680 Credit Score and Ways to Improve ItAs discussed earlier, a 680 score qualifies for most loan types. Moreover, creditors find the score trustworthy and reliable enough to offer debt with negotiable terms based on your income, credit limit, and credit utilization ratio. Activities that hurt your credit score:
- Using credit cards for every purchase instead of using them for a specific term and repaying the debt on the closing period. On average, you don’t need more than three credit cards to manage your expenses.
- Multiple credit card applications must be avoided as they negatively impact your credit score as a hard inquiry.
- Late or missed payments reduce your credit score.
- Make regular payments on your bills and debt amount
- Maintain your credit utilization ratio below 30%
- Check credit reports for errors or false information in your payment history.
- Manage your debt-to-income ratio (ideally below 43%)