686 Credit Score: Is It Good Or Bad (+ Can I Fix It)?
- A 686 credit score can limit loan options and raise interest rates.
- You can improve your score by paying bills on time and managing credit wisely.
- Contact The Credit Pros for potential help in creating a personalized plan to address your credit issues and improve your financial future.
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A 686 credit score sits in the fair range, just below good. This score can limit your loan options and lead to higher interest rates, which you want to avoid. You might wonder why your score isn’t perfect or how long it takes to boost it. Don’t worry; you can use many strategies to improve your score.
To raise your 686 score, pay your bills on time, keep your credit utilization under 30%, and manage new credit applications carefully. Check your credit report regularly for errors and dispute any inaccuracies. The great news? With dedication, you can boost your score by 50 to 100+ points in just a few months.
Consider reaching out to The Credit Pros for help. We'll have a low-pressure chat to evaluate your 3-bureau credit report and create a tailored plan based on your unique situation. Unlock your potential and secure the best rates for mortgages and loans—call us today!
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Why Is My Credit Score Only 686 (And Not Perfect)?
Your credit score of 686 falls into the fair category, not perfect. This score is just shy of the 700 threshold, which many lenders view as a dividing line between good and fair credit. A 686 indicates you generally pay your bills on time, but you may have some late payments or a limited credit history. This can make lenders a bit cautious about your creditworthiness.
To improve your score, focus on these key actions:
• Pay your bills on time, consistently.
• Keep your credit utilization below 30% of your available credit.
• Limit applications for new credit, as multiple inquiries can temporarily lower your score.
• Check your credit report for errors and dispute inaccuracies.
With a score of 686, you might find access to the best loan terms or interest rates limited. However, you can still qualify for various loans and credit cards, although potentially with higher interest rates. Work proactively to improve your score to unlock better financial opportunities in the future.
Lastly, prioritize timely bill payments, maintain low credit utilization, and regularly check your credit report for errors to boost your score effectively.
5 Best Ways To Boost A 686 Credit Score 50-100+ Points?
To boost your 686 credit score by 50-100+ points, you can implement these five effective strategies:
• Pay Your Bills On Time: Consistently pay your bills on time. This action accounts for 35% of your credit score. Set reminders or automate payments to avoid late fees.
• Reduce Your Credit Utilization Ratio: Keep your credit utilization below 30%. Pay down existing debts or increase your credit limits to lower your ratio.
• Avoid Opening New Accounts: Refrain from applying for multiple new credit accounts in a short timeframe. Each hard inquiry can decrease your score, so only open new accounts when necessary.
• Correct Errors on Your Credit Report: Get a copy of your credit report and check for inaccuracies. Disputing errors can lead to significant improvements in your score.
• Become an Authorized User: Ask a trusted family member or friend with good credit to add you as an authorized user on their credit card. Their positive payment history can help elevate your score.
Finally, make sure to pay your bills on time, reduce debt, and check for errors on your report. These straightforward steps will significantly improve your credit score.
How Long To Improve My 686 Credit Score 50-100+ Points?
Improving your 686 credit score by 50-100+ points can take a few weeks to a few months. Your financial situation will significantly influence this timeline.
To get started:
1. Pay Down Balances: Bring your credit utilization below 30%. If you pay off your credit card balances, you might see a boost in just 30 days.
2. Make On-Time Payments: Since payment history is the most crucial factor in your score, consistently paying on time can reflect positively within 1-2 months.
3. Limit New Credit Applications: Avoid new credit inquiries; they can temporarily lower your score. This can take a few months for your score to stabilize.
4. Check for Errors: Review your credit report for inaccuracies. Disputing these can lead to rapid score increases, often within weeks to a couple of months, depending on how quickly the bureaus respond.
5. Consider a Secured Credit Card: If you're looking to build your credit, using a secured card and making timely payments can help improve your score over a few months.
Big picture—focus on paying down balances, making timely payments, and monitoring your credit report. These actions empower you to improve your credit score significantly and take control of your financial future.
Can I Get The Best Mortgage Rates With A 686 Credit Score?
Yes, you can get the best mortgage rates with a 686 credit score, but there are important details to consider. A 686 credit score is generally good, making you eligible for most loan types. However, it isn't in the “very good” or “excellent” categories, which may limit your options for the best interest rates.
Most lenders reserve their best rates for borrowers with scores above 740. With your score of 686, you might receive competitive rates, but they could be slightly higher than those offered to borrowers with scores over 740.
To improve your chances, you should shop around. Different lenders have varying criteria, and some specialize in helping borrowers like you. Keep in mind that factors such as your debt-to-income ratio and employment status also play a role in the approval process.
To maximize your rates, consider taking steps to boost your score before applying. You can reduce debt or ensure all bills are paid on time, which can significantly impact your score. Tools like Borrowell allow you to compare mortgage options and find lenders offering better rates based on your credit profile.
Overall, focus on improving your credit score, shop around for lenders, and be aware of how your financial situation affects your mortgage rates.
Any Practical Benefits Of A 686 Credit Score
Having a 686 credit score offers you several practical benefits. You gain access to a variety of credit products, including loans and credit cards, as most lenders consider you an "acceptable" borrower. This means you have a solid chance of approval, even if you may not always get the lowest interest rates.
With a score in the good range, you establish credibility with lenders, making it easier to secure loans for major purchases like a home or car. You also benefit from lower interest rates, which can help you save money on payments and manage your monthly budget better. Additionally, your good score enhances your negotiating power when discussing loan terms with lenders.
Your 686 credit score can also improve your chances of renting an apartment. Many landlords check credit scores during the application process. A good score indicates financial responsibility, leading to quicker approvals and possibly lower security deposits.
Insurance companies might offer you reduced premiums based on your credit score, as they often use it in their risk assessments. This can mean lower costs for car and homeowners insurance.
As a final point, with a 686 credit score, you enjoy access to more financial products, lower interest rates, easier rental processes, and cheaper insurance premiums. Improving your score further can unlock even greater benefits and savings.
Can I Get Good Personal Loan Rates With A 686 Credit Score?
Yes, you can get good personal loan rates with a credit score of 686. This score falls within the "good" range, typically between 670 and 739. Lenders see this score positively, showing you are a responsible borrower. Although many lenders will approve your application, you might not qualify for the best rates, which usually require a score above 700.
When applying for a personal loan, remember to:
• Check your credit report: Identify and dispute any errors that may affect your score.
• Manage your debt: Maintain a low credit utilization ratio by paying down existing debts. This enhances your creditworthiness.
• Make timely payments: Paying your bills on time consistently builds a positive credit history.
• Consider your loan amount: Assess how much you truly need. Applying for a reasonable loan amount demonstrates reliability to lenders.
• Engage with existing lenders: Approach banks where you have accounts. They may be more willing to approve your loan based on your prior relationship.
To put it simply, while a score of 686 may not secure the best deals, it qualifies you for reasonable personal loan options. Stay proactive in improving your score for better opportunities in the future.
Can I Buy Or Lease A Car With A 686 Credit Score?
Yes, you can buy or lease a car with a 686 credit score. This score is in the "good" range, which means lenders generally see you as a low-risk borrower. Many lenders approve auto loans for borrowers like you, although you might not qualify for the lowest interest rates.
For a new car, expect an average annual percentage rate (APR) of about 9.19%. If you choose to lease, there’s no specific minimum score necessary. However, a higher score usually means better lease terms. With your 686 score, you’ll likely secure a lease, but be ready for slightly higher payments than borrowers with higher scores.
Additionally, lenders will consider other factors, such as your income and existing debts. Even with a 686 credit score, your overall financial situation can impact your loan or lease terms.
In short, you can buy or lease a car with a 686 credit score. We suggest comparing rates and exploring options to find the best loan or lease terms for your situation.
Credit Card (Secured Or Unsecured) Options With A 686 Credit Score?
With a 686 credit score, you have various credit card options, both secured and unsecured. While you might find fewer choices than those with higher scores, some solid options are available.
For secured cards, consider these:
• Capital One Platinum Secured Credit Card
• Discover it® Secured Credit Card
These require a security deposit that generally matches your credit limit. For example, a $200 deposit gives you a $200 credit limit. Timely payments can help you build your credit, eventually allowing you to transition to an unsecured card.
For unsecured options, you might look into:
• Credit One Bank Platinum Visa for Rebuilding Credit
This card offers cash back on certain purchases but may come with an annual fee. Expect higher fees and lower limits since the best cards are usually reserved for those with better credit.
If you aim to pay your balance monthly, explore cards that provide rewards. Also, consider options with 0% introductory APRs for a limited time, which can be helpful for larger purchases or balance transfers.
To finish, focus on making timely payments and monitoring your credit to improve your score and access better card options down the line.
Should I Become An Authorized User If I Want To Boost My 'Good' Credit Score
Yes, you should consider becoming an authorized user to boost your good credit score. When you do this, the primary account holder's positive payment history and low credit utilization can reflect on your credit report. This can improve your score, especially if the account has a strong credit history.
To maximize the boost, select an account with a long history of on-time payments and a low balance compared to its limit. A card with a high credit limit, used responsibly, can enhance your credit utilization ratio, which is crucial for your score.
However, be aware that if the primary user mismanages the account, such as making late payments, it could negatively impact your credit. Ensure you have a solid plan and choose someone committed to maintaining their credit responsibilities.
In essence, becoming an authorized user can be an effective strategy for enhancing your credit profile. Just make sure to choose wisely and monitor the account's management.
Which Negative Marks On My Credit Report Affect My 686 Credit Score?
Negative marks on your credit report that affect your 686 credit score include late payments, collections, charge-offs, and bankruptcies.
• Late payments: You incur these when you miss loan or credit card payments. They can negatively impact your score for up to seven years.
• Collections: If you fail to pay a debt, it might go to collections, causing significant damage to your score.
• Charge-offs: When a lender believes you won’t repay a debt, they may write it off as a charge-off, which greatly harms your credit.
• Bankruptcies: Filing for bankruptcy stays on your report for up to ten years and severely impacts your score.
Each of these negative marks has a distinct effect, but generally, they lower your score and reduce your chances of securing favorable loan terms. Focus on making timely payments and addressing any inaccuracies on your report to improve your score.
To wrap up, prioritize timely payments and work on removing any negative items from your credit report to help raise your score effectively. If you're interested in further boosting your score, check out our section on "5 best ways to boost a 686 credit score 50-100+ points" for actionable steps, or explore "should I negotiate and pay off debts to improve my 'good' credit score?" for strategies on managing your debt effectively.
Should I Negotiate And Pay Off Debts To Improve My 'Good' Credit Score?
Negotiating and paying off debts can help improve your 'good' credit score. However, it’s crucial for you to understand how this process impacts your credit. When you negotiate a debt settlement, you usually agree to pay less than the total amount owed. This can relieve some financial stress and reduce your overall debt.
Keep in mind that settling a debt often results in a negative notation on your credit report, indicating that you didn't meet the original agreement. This can temporarily lower your credit score. The extent of this impact depends on factors like your current credit status and debt levels.
In many cases, settling debts is a better choice than continuing to miss payments, which can cause more severe credit damage. If you lower your debt by negotiating, you can enhance your credit utilization ratio, which is a key factor in determining your score.
Consider whether you’ll negotiate directly with creditors or use a debt relief company. While a professional can assist you, they may charge fees that add to your financial burden. Always be sure to understand the costs involved before proceeding.
On the whole, if you are weighing debt settlement options, balance the pros and cons carefully. This approach may lead to financial stability, even if your credit score takes a hit initially. For more tips on boosting your credit score, check out our section on the best ways to increase your 686 credit score.
Best Site To Monitor My Credit Report?
To monitor your credit report effectively, we recommend using Experian. You benefit from comprehensive access to your credit report and a FICO® Score, providing an accurate snapshot of your credit health. With Experian, you can check your credit report monthly and receive alerts for any changes, helping you spot potential issues early.
You can take advantage of Experian's ID monitoring and protection services, which notify you of any suspicious activity. Additionally, their tools, like Experian Boost, allow you to raise your credit score by paying bills such as rent.
For a straightforward experience, visit the Experian website or download their mobile app. This allows you to monitor your credit anytime, anywhere. Bottom line, you can stay informed about your credit status and take proactive steps to maintain or improve your score, especially important if you're navigating financial options with your 686 credit score.
Should I Consider A Credit Builder Loan W/ 'Good' Credit?
Yes, you should consider a credit builder loan, even if you have 'good' credit. These loans can further strengthen your credit profile and help you maintain a positive payment history. When you make on-time payments, this activity is reported to credit bureaus, which can enhance your credit score.
Credit builder loans are especially useful if you want to diversify your credit mix or plan to finance larger purchases like a home or a car in the future. However, assess your financial situation before committing. If your credit score is already good, a credit builder loan may not be essential unless you want to boost it further. Remember that missing payments could hurt your score, so ensure you can comfortably cover the monthly payments.
Explore various lenders, as some may offer lower fees or better terms. Smaller banks and credit unions often provide these loans. You'll generally find loan amounts between $300 and $1,000 with terms of 6 to 24 months.
In a nutshell, a credit builder loan can be a smart way to strengthen your credit while keeping an eye on your finances. Make your decision based on your specific financial goals and needs.
Is A 686 Credit Score Different Between Fico And Vantage?
Yes, a 686 credit score can differ between FICO and Vantage. Each scoring model interprets credit data in its own way, leading to score variations.
FICO scores range from 300 to 850, classifying a score of 686 as good, which falls between 670 and 739. VantageScore may categorize a 686 score similarly, but their good credit ranges can vary slightly depending on the version used.
The way each model calculates scores also differs. FICO uses extensive variables and complex algorithms, while VantageScore considers fewer categories. This means that your credit report can yield different scores under each system.
You should keep these differences in mind, as lenders often prefer one scoring model over the other. Understanding whether a lender uses FICO or VantageScore helps you prepare for borrowing decisions. Before applying for a loan, check which score the lender considers to evaluate your creditworthiness.
All in all, knowing that your 686 credit score might appear differently in FICO and Vantage models empowers you to make informed financial decisions.
Does My 686 Credit Score Affect My Chance To Rent An Apartment?
Yes, your 686 credit score affects your chances of renting an apartment. Many landlords consider credit scores as a key factor in rental applications.
Most landlords prefer scores of 650 or higher, indicating financial responsibility. Since your score is 686, you generally have a better chance. However, each landlord has different criteria. Some may request additional guarantees, like a higher security deposit, if they have concerns about your credit history.
Landlords might also review your overall credit history. They may prioritize your record of on-time payments rather than just the score. Even with an imperfect score, showcasing your financial stability can enhance your application.
Keep in mind that rental requirements vary by location and apartment type. It’s wise for you to communicate openly with potential landlords to learn their specific criteria.
The gist of it is that while a 686 credit score doesn’t guarantee approval, it certainly improves your chances of being considered for rental options.
Can A Credit Repair Company Actually Boost My 'Good' Score Any Further
Yes, a credit repair company can potentially boost your good credit score further, but results vary. Legitimate companies can help you by disputing inaccuracies on your credit report, which may raise your score. However, if the information is accurate, there’s little a credit repair company can do for you. You have the same rights to dispute errors yourself at no cost.
Consider hiring a credit repair company if you feel overwhelmed by the process. They can guide you and handle disputes on your behalf. Start by reviewing your credit reports for errors; you're entitled to one free report from each of the three major bureaus annually.
Remember, even a reputable credit repair company cannot guarantee significant score improvements. Your credit behavior, like making timely payments and managing credit utilization, plays a crucial role in your score. If you're looking to boost your score from 686 even further, we explore additional strategies in the next section.