By Jackie Lam

(Last Updated – 02/2024)

Is a 650 credit score good? Not exactly. Technically, a 650 FICO^® score hovers in the fair category. The good credit score range starts at 690. While you can likely qualify for, say, a mortgage or car loan, you can expect to pay higher interest rates than someone with a higher credit score.

A good credit score can feel like your Golden Ticket as a consumer. After all, having a solid credit score helps you secure loans to buy a car or house or go back to school. You can also have enhanced purchasing power with higher than a 650 credit score. Read on to learn what a 650 credit score means to your personal finances and how you might build that number.

What Does a 650 Credit Score Mean?

Consumer credit scores range between 300 and 850, with 300 considered the low end and 850 on the high end. The most widely used credit scoring model is the FICO Score, which is used by most lenders.

Here’s a breakdown of the FICO credit score ranges:

•   Poor: 300-579

•   Fair: 580-669

•   Good: 670-739

•   Very Good: 740-799

•   Excellent: 800-850

As you can see, the answer to “Is a 650 credit score good?” is no. A 650 credit score sits on the higher end of fair territory. It’s not as low as having a poor credit score, and the next highest range for the FICO Score is good, which starts at 670.

While technically, in the eyes of the FICO Score, a 650 credit score is considered fair, what is regarded as a good credit score depends on the lender. In other words, what you qualify for based on a 650 score hinges on the lender, their credit requirements, and how they weigh other financial information.

💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

What Else Can You Get with a 650 Credit Score?

As mentioned, there’s a strong chance you can qualify for a credit card, car loan, personal loan, or mortgage with a 650 credit score. You might have higher interest rates, less flexibility, and less favorable terms than if you had a good or excellent score.

A credit score is one of many things lenders and creditors review when deciding whether to extend you credit or a loan. They typically also factor in your income, debt-to-income ratio (DTI), education, and collateral.

Can I Get a Credit Card With a 650 Credit Score?

With a 650 credit score, you should be able to qualify for some credit cards. However, note the best credit cards usually require a credit score in the good range or better. With a 650 credit score, you might find yourself limited to credit cards with higher interest rates and fewer perks.

If you find yourself having trouble landing the credit card you want with 650 credit, you might want to consider a secured card, which usually has lower minimum credit score requirements.

Designed for those who are working on building their credit, you’ll need to put down a deposit on the card. Your credit limit to start usually matches your deposit. So if your deposit is $500, your credit limit will also be $500. If you manage a secured card well, you may then be able to shift to a standard credit card.

Recommended: What to Know Before You Borrow Money Online

Can I Get an Auto Loan with a 650 Credit Score?

You most likely will be able to secure an auto loan with a 650 credit score. However, your interest rates won’t be as good than if you had a higher score.

According to data compiled by Experian, in Q3 of 2023, the average interest rate on loans for new cards for consumers with credit scores between 600 and 660 was 9.29%, whereas those with scores between 661 and 780 had an average interest rate was 6.88%.

Can I Get a Mortgage with a 650 Credit Score?

Yes, you can likely get a mortgage with a 650 credit score. Some details:

•   Minimum credit scores for a conventional home loan tend to be in the range of 620.

•   You can get an FHA loan with the maximum amount of financing available with a 580 credit score and 3.5% down payment.

•   For VA loans, most lenders have a minimum credit score which varies but is often anywhere from 580 to 620.

•   For USDA loans, you typically need a credit score of at least 640 to automatically qualify. Otherwise, a full credit review is required before getting the lender’s approval.

Can I Get a Personal Loan with a 650 Credit Score?

A 650 credit score can land you a personal loan. That being said, you’ll probably find personal loans with better interest rates if you have a higher score. For credit card consolidation loans, you typically need a higher credit score — think 670 and up.

Again, it’s wise to shop around. Like other forms of financing, lenders will factor in different financial and credit criteria when reviewing your application.

Recommended: Average Interest Rates for Personal Loans

The Takeaway

Is 650 a good credit score? No; it’s in the fair range. Is it possible to get financing or a line of credit with a 650 credit score? Yes. But you’ll also need to consider the reality: You’ll likely have a more challenging time landing a mortgage, auto loan, personal loan, or credit card than someone with a higher credit score. You may be offered higher interest rates, less flexibility, and less favorable terms.

When applying for financing or a line of credit, check your credit score beforehand. This helps you figure out where you stand and anticipate what interest and rates you might be paying.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

By Ashley Kilroy

(Last Updated – 02/2024)

A 735 credit score is considered a good score in the lending industry and can increase your access to financing, credit cards, and affordable interest rates. This credit score likely comes from a track record of consistent, healthy habits with debt. As a result, lenders typically feel comfortable with borrowers in this range, sometimes offering them unique benefits and more affordable terms to earn their business.

Whether you’re looking for a mortgage or a credit card with an increased spending limit, a 735 FICO^® score can open financial doors for you.

Learn more about what this score can help you qualify for and how you might further build it below.

What Does a 735 Credit Score Mean?

Lenders consider a 735 FICO score to be a “good” credit score. Credit score ranges are usually from 300 to 850, with higher scores indicating better creditworthiness. Here’s a breakdown of credit score ranges:

•   Poor: 300-579

•   Fair: 580-669

•   Good: 670-739

•   Very Good: 740-799

•   Excellent: 800-850

A FICO credit score of 735 falls within the “Good” range, meaning you have a solid credit history. Lenders often offer favorable terms, such as lower interest rates, to individuals with scores in this range. It’s also bordering on the “Very Good” category, meaning you could have an even better standing credit-wise by building your score by five points.

💡 Quick Tip: Some personal loan lenders can release your funds as quickly as the same day your loan is approved.

How to Get a 735 Credit Score

Borrowers can achieve a “good” credit score of 735 through healthy financial practices:

•   Payment history: Timely payment of bills, including credit cards, loans, and other debts, is crucial. Late payments or defaults can damage your score.

•   Credit utilization: This is the ratio of your credit card balances to your credit limits. Maintaining no more than a 30% credit utilization rate (closer to 10% is even better) demonstrates responsible credit management. For instance, if you have a credit card with a limit of $10,000, spending $3,000 or less monthly with it can help build your credit score.

•   Length of credit history: The longer your credit history, the better. For example, getting a credit card at 20 years old, paying it on time, and keeping the account open can be a positive vs. closing a line of credit you don’t use that often.

•   Credit mix: A diverse mix of credit types, including credit cards, loans, and mortgages, can have a positive impact on your credit profile.

•   New credit: Opening multiple new credit accounts within a month or two may be risky from a lender’s perspective. Be cautious about applying for too much credit within a short timeframe.

What Else Can You Get with a 735 Credit Score?

Having a 735 credit score can provide various financial advantages and open up opportunities. Here’s an explanation of the benefits that may be associated with having and maintaining a good credit score:

•   Loan access: Lenders use credit scores to assess risk when borrowers apply for loans. A 735 FICO score indicates responsible credit behavior, potentially making you more likely to be approved for loans, including mortgages, car loans, and personal loans.

•   Preferred interest rates: A good credit score may translate into lower interest rates because lenders may perceive less risk in lending. In essence, lenders compete for low-risk borrowers and use more affordable interest rates to attract the most reliable borrowers. This dynamic could work in your favor, ultimately saving you money over the life of the loan.

•   Favorable loan terms: Borrowers with a credit score of 735 may qualify for more favorable loan terms. For example, you might enjoy waived fees, increasing loan affordability.

•   Expanded access to credit: A good credit score can give you access to a wider range of credit options. For instance, you might receive offers for more generous credit card rewards or for increased lines of credit.

•   Stronger tenant profile: Landlords often check the credit histories of potential tenants to assess their financial responsibility. A good credit score can enhance your attractiveness as a tenant, making it easier to rent an apartment.

•   More affordable utility installation: Some utility companies may check your credit score before providing services. A good credit score can allow you to avoid security deposits for cable or internet equipment.

Can I Get a Credit Card with a 735 Credit Score?

When you apply for a credit card, the company typically reviews your credit as part of how they determine if they want to do business with you. Often, credit card issuers are looking for a score of 670 or higher.

A 735 FICO credit score demonstrates a history of responsible borrowing and spending. As a result, you may qualify for many cards and rewards programs with this credit score. Your score may also help you obtain lower interest rates and expanded credit limits.

💡 Quick Tip: Swap high-interest debt for a lower-interest loan, and save money on your monthly payments. Find out why SoFi credit card consolidation loans are so popular.

Can I Get an Auto Loan with a 735 Credit Score?

Auto lenders prefer borrowers with credit scores of at least 661, with higher scores resulting in better terms and rates. Therefore, a 735 FICO score will qualify you for an auto loan and may help you lower your interest rate.

Remember, the rest of your financial circumstances, including your monthly income and ability to make a down payment, can affect what kind of auto loan you receive.

Can I Get a Mortgage with a 735 Credit Score?

A 735 credit score exceeds the usual qualification standards for all mortgage types. As a result, you can qualify for a mortgage with that score if you meet the other standards, including a debt-to-income ratio under 43%, a consistent employment history, and a house within your borrowing limit.

This credit score can help you get better interest rates because it surpasses minimum scores for all mortgages, including:

•   620 for conventional loans

•   700 for jumbo loans

•   500 with FHA loans with a 10% down payment or 580 with a 3.5% down payment

•   620 for VA loans

•   580 for USDA loans

Can I Get a Personal Loan with a 735 Credit Score?

Lenders prefer borrowers with credit scores of at least 670 for personal loans. So, a 735 credit score can qualify you for lower terms and more favorable rates. However, like other loan types, personal loans require a robust financial profile. Borrowers also need a low debt-to-income ratio and steady monthly income to qualify.

The Takeaway

A credit score of 735 is in the “good” range of FICO scores, helping to position you to borrow at favorable rates and potentially qualify for numerous loan types. The path to achieving and maintaining a 735 credit score involves cultivating healthy financial habits, encompassing timely payments, judicious credit utilization, a diverse credit mix, and applying to new credit sparingly.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

By Ashley Kilroy

(Last Updated – 03/2024)

A 730 credit score is considered a good credit score and can help you qualify for loans and credit cards, potentially at favorable interest rates. This score is something you can be proud of, as it likely indicates a history of responsible, reliable borrowing habits, such as paying your loans on time.

In the dynamic landscape of personal finance, your credit score can serve as a pivotal indicator of your financial health. Among the spectrum of credit scores, a score of 730 stands as a significant milestone, above the national average of 716.

Read on for more details about a 730 credit score and what it means to your financial life.

What Does a 730 Credit Score Mean?

A 730 credit score is solidly in the “good” category. In fact, it’s just 10 points away from being in the “very good” range. While you may not receive the very best interest rates and terms available, your credit history demonstrates enough reliability for many lenders to want to work with you.

Here’s how credit score ranges usually align:

•   300 to 579: Poor

•   580 to 669: Fair

•   670 to 739: Good

•   740 to 799: Very good

•   800 to 850: Excellent

Getting a 730 FICO^® score requires that you practice responsible borrowing. Several aspects of borrowing will help you maintain this score versus having a bad credit score:

•   Pay your bills on time.

•   Keep your credit card balances under 30% of your total borrowing limit (preferably closer to 10%).

•   Keep lines of credit open.

•   Demonstrate reliability with different forms of credit, such as both credit cards and installment loans (such as a mortgage or personal loan).

•  Limit the number of hard credit inquiries from lenders.

💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

What Else Can You Get with a 730 Credit Score?

A 730 credit score opens doors to more loan products and allows you to access credit at more favorable terms. So, your credit score is an essential asset for your financial well-being. Here’s how having a good credit score is important and can help you qualify for loans and lines of credit:

•   Favorable approval rates: Lenders are more likely to approve your credit card or loan application when you have a good credit score because it signals that you are a lower-risk borrower.

•   Lower interest rates: Statistically, borrowers with higher credit scores are less likely to default on payments. So, lenders offer more favorable interest rates to borrowers with scores of 730 or more. Because loans are usually thousands of dollars, a fraction of a percent equates to drastic differences in cost.

•   Better loan terms: Beyond lower interest rates, having a good credit score may lead to more favorable loan terms, such as reduced fees. For example, your lender might waive or lower origination fees for applicants with scores of 700 or better.

•   Access to more credit options: With a good credit score, you are more likely to qualify for a variety of credit options, including credit cards, personal loans, auto loans, and mortgages.

•   Higher credit limits: Creditors are often willing to extend higher credit limits to individuals with good credit scores, providing you with greater borrowing power.

•   Exclusive offers: Some lenders and financial institutions offer special bonuses, rewards, or exclusive deals to individuals with excellent credit scores.

•   Enhanced housing options: If you are planning to rent a home, your credit score is one way landlords assess your application for an apartment. A 730 FICO score tells the landlord you’ll probably be a responsible, low-risk tenant.

•   No security deposits: Some utilities (usually cable or satellite TV) require security deposits because of the valuable equipment installed for service. However, a high credit score may qualify you for a waiver for this fee.

Can I Get a Credit Card with a 730 Credit Score?

Card issuers review your credit score as part of your application for a credit card. While the specific requirements can vary among different credit cards and issuers, a credit score of 700 or higher is sufficient to qualify for most credit cards.

As a result, a 730 credit score can help you get a credit card, possibly with some perks, such as lower APRs and more rewards. Remember, establishing a history of on-time payments and creating a diverse credit mix are crucial for boosting your credit score to this level.

Can I Get an Auto Loan with a 730 Credit Score?

Auto lenders usually give borrowers with good credit preferential terms and rates for financing vehicle purchases. Specifically, auto lenders like to see credit scores of 661 to 780 from borrowers seeking competitive rates. So, a 730 FICO score puts you comfortably in the prime range for a loan with a favorable rate. That being said, the value of the car, your down payment, and other factors can also influence whether you’ll qualify for an auto loan.

Recommended: Does Paying Off a Car Loan Help Your Credit Score?

Can I Get a Mortgage with a 730 Credit Score?

You can likely get a mortgage with a 730 credit score if you meet other qualifying criteria for the loan (such as debt-to-income ratio, employment history, etc.).

•   Conventional mortgages usually require a credit score of 620 or higher, while jumbo loans may require a credit score of at least 700.

•   You can typically get an FHA loan with a credit score of 500 by making a 10% down payment.

•   VA loans usually require a credit score of 620.

•   USDA loans typically require a 580 credit score.

Remember, loan standards vary by lender, and your borrower profile should be strong in other areas (such as income) to get the best terms and rates.

Can I Get a Personal Loan with a 730 Credit Score?

You can probably get a personal loan with a 730 credit score; these loans (which you can use to pay off high-interest credit card debt or medical bills) usually are given to those with a score of at least 670.

Remember, you’ll also need sufficient monthly income and a solid debt-to-income ratio to qualify for a personal loan. Because criteria vary among lenders, it’s crucial to shop around to see what kind of offers you get based on your financial profile.

How to Build Your Credit Score

A higher credit score (such as a 730 credit score) boosts your chances to qualify for a loan and receive better terms and rates. Here are steps that can help build your score to that level or even higher:

•   Enhance your credit file: Building your credit file involves establishing a positive credit history by having various types of credit accounts and managing them responsibly. If you have no credit history, you might start with a credit-builder loan or a secured credit card as your first account.

•   Stay current on payments: Timely payments can be crucial for building your credit score. Payment history is a significant factor in credit scoring models. For this reason, you may want to set up reminders or automatic payments to ensure you never miss due dates. Remember, one missed payment can hurt your credit.

•   Address delinquent accounts: Delinquent accounts (accounts with late payments) damage your credit score the longer they sit on your credit profile. Addressing these accounts involves bringing them current and resolving any outstanding issues. To do so, contact creditors to work out a repayment plan if needed. A credit counselor may also help negotiate favorable payment conditions on your behalf if your situation becomes overwhelming.

•   Apply for new credit sparingly: Each time you apply for a new loan or credit, the lender makes a hard inquiry on your credit report. Every inquiry temporarily lowers your credit score, and too many inquiries within a short period may suggest risky borrowing habits. So, be selective about applying for new credit, and apply for loans or credit cards when you’re confident in your eligibility.

The Takeaway

A credit score of 730 is considered a good score by most lenders and almost in the “very good” credit score range. This score likely reflects well on your responsible use of credit. It can provide access to various loan products with favorable lending terms, including personal loans, which can be used to pay off high-interest debt.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

By Austin Kilham

(Last Updated – 03/2024)

If you’ve got a credit score of 688, that puts you squarely in the “good” range, which is defined as between 670 and 739, according to FICO^®, the most commonly used credit scoring company.

A good score means that as you seek loans or other lines of credit, you will likely have an array of options available to you. That said, you still may not qualify for the best interest rates available.

Here’s a closer look at what a 688 FICO score could mean for you and your ability to secure different forms of credit.

What Does a 688 Credit Score Mean?

Most people in the U.S. have a credit score of about 715 on average. So with a credit score of 688, you are in good shape, but there’s still room for improvement. Credit scores as compiled by the credit bureaus range from 300 to 850.

The level of scores above yours would be “very good,” or between 740 and 799. Anything higher (800 to 850) is considered to be in the exceptional credit score range.

Here’s another way of looking at your FICO score: With a 688 credit score, you are considered a “prime” borrower, which means that lenders typically believe you’re likely to pay your bills responsibly. And that can translate to more lending options.

💡 Quick Tip: Some personal loan lenders can release your funds as quickly as the same day your loan is approved.

How Do Lenders Use Your Credit Score?

You can think of your credit score as a numerical representation of your credit history. It takes several factors into account , including length of credit history, whether you pay your bills on time, how much you currently owe, how many different types of accounts you maintain, and whether you’re actively seeking new credit.

When you apply for credit, lenders look closely at your score to determine your creditworthiness.

•   They equate higher scores with less risk, since higher scores suggest an individual has been responsible with their credit in the past.

•   As a result, lenders are more likely to offer borrowers with higher scores a loan and lower interest rates.

•   Lenders typically view borrowers with low scores as more risky. They worry that these individuals may be more likely to default on a loan, failing to pay them off entirely.

•   Because default is costly for the lenders (in terms of time and money), they usually offer individuals with lower scores credit with higher interest rates and fees to offset their risk. This, in turn, makes borrowing more costly.

What Can You Get with a 688 Credit Score?

With a credit score of 688, you may qualify for a wide range of credit and loan products. Here is a closer look at what you may expect.

Can I Get a Credit Card with a 688 Credit Score?

A good credit score of 688 will help you qualify for a credit card. You will likely have a variety of offers to consider, but it’s worth noting that the best ones (say, those with lower interest rates and more credit card rewards) often go to those with a score of 700 or higher.

Use that credit card wisely and you could continue to increase your credit score. However, credit cards can put you into tricky financial situations.

•   Credit cards are a form of revolving credit that allow you to carry balance from month to month. They typically charge very high interest rates for this ability — around 20% or higher on average.

•   If you pay your bill off every month, you can avoid interest payments. However, if you fall behind and carry a balance, you’ll owe interest.

•   Credit card interest compounds. If your balance extends for multiple months, you’ll begin to owe interest on the interest you’ve already accrued, causing your debt to grow.

💡 Quick Tip: With low interest rates compared to credit cards, a personal loan for credit card consolidation can substantially lower your payments.

Can I Get an Auto Loan with a 688 Credit Score?

There are no minimum scores for auto loans, but with a score of 688, you’re likely to qualify for one. In fact, prime borrowers received the bulk of new auto loans in 2023, with 45.90% of new loans going to them. Compare that to 12.67% for subprime borrowers with lower credit scores.

Prime borrowers also had access to relatively low interest rates in 2023, paying 6.88% in interest on average. That’s quite a bit better than subprime borrowers, who were charged 11.86% on average.

Raising your credit score could help you qualify for lower rates.

Can I Get a Mortgage with a 688 Credit Score?

A credit score of 688 provides several options when it comes to mortgage loans.

•  You may qualify for most conventional loans, which are not guaranteed by the federal government and typically require a credit score of 620 or higher.

•   You may also qualify for government-backed loans, such as Federal Housing Administration (FHA) loans, which typically require a score of 580 with a 3.5% down payment. Those who put 10% down can often qualify with a lower score.

•   If you’ve been in the armed forces, you may qualify for a VA loan offered through the U.S. Department of Veteran Affairs, which also usually requires a credit score of 580 to qualify.

•   For a USDA loan (another government-backed loan), the credit score requirement is usually 620. So, with a 688 FICO score, you would be in good shape on that qualification.

•   Jumbo loans (which are larger in size than conventional loans) typically require a higher credit score, 700 or above, for access.

Can I Get a Personal Loan with a 688 Credit Score?

A personal loan is a lump sum payment with few restrictions on use that you agree to pay back in monthly installments with interest. Personal loans could be used for credit card consolidation, home renovations, a family vacation, or medical bills.

Borrowers with a credit score of 688 will likely qualify for a personal loan. And personal loans may be cheaper options than other forms of credit. Consider that the average personal loan interest rate is currently about 12%, compared to about 20% or higher still for credit cards.

The lowest interest rates on personal loans will usually go to those with the highest credit scores.

The Takeaway

A 688 credit score falls into the “good” range of score. Lenders may offer you a full range of loans (such as car loans, a mortgage, and a personal loan) and lines of credit, such as a credit card. However, you may not get the lowest interest rates and most affordable terms, as those are reserved for borrowers with very good and/or exceptional credit.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

By Austin Kilham

(Last Updated – 03/2024)

A 680 credit score does indeed qualify as a good credit score. With a three-digit score between 670 and 739, you are classified as in the “good“ range, according to FICO^®, which produces the most commonly used credit scores by lenders.

A credit score of 680 will likely qualify you for many options when it comes to loans and lines of credit. Here’s a closer look at what a score of 680 could mean for you and your ability to secure different kinds of credit.

What Does a 680 Credit Score mean?

A credit score of 680 puts you in the “good” category per FICO credit scores. Above that is “very good” at 740 to 799, and “exceptional” at 800 to 850.

At its most basic, a credit score is a numerical representation of your credit history. It gives weight to factors such as length of credit history, how much credit you are currently using, whether you pay your bills on time, how many different types of accounts you maintain, and whether you’re actively seeking new credit.

When you apply for a new loan or line of credit, here are some considerations:

•   Your potential lender will take a close look at your score to determine your creditworthiness. They’re looking for higher scores, which demonstrate that you’ve been responsible with credit in the past, paying bills across multiple accounts on time.

•   Borrowers with numbers in the higher credit score ranges are potentially less risky to lenders. And as a result, lenders are more likely to offer them lower interest rates and favorable terms.

•   Lenders typically see borrowers with low scores as potential risks. They’re worried these individuals may be more likely to default on their loan, a process that is costly for lenders as they try to recoup their losses.

•   Lenders may choose not to extend credit to borrowers with low scores, especially those with “poor” scores of less than 580.

•   When lenders do offer credit to individuals with a lower or what you might call bad credit score, they may offset their risk with higher interest rates and fees, which increases the cost of borrowing.

How do you compare to the rest of the nation? Most people in the US have a credit score between 600 and 750, and the average score is 715. Though a credit score of 680 is a bit less than average, it does still qualify you as a “prime” borrower. In other words, lenders believe you’re likely to pay your bills on time and pay off your loan in full.

💡 Quick Tip: A low-interest personal loan from SoFi can help you consolidate your debts, lower your monthly payments, and get you out of debt sooner.

What Else Can You Get with a 680 Credit Score?

With a credit score of 680, there will likely be a wide range of loans available to you. In addition, you may favorably impress landlords who check your credit score when you apply to be a tenant.

Can I Get a Credit Card with a 680 Credit Score?

With a credit score of 680, you’ll likely qualify for a broad range of credit cards. There may be only a few cards that are reserved for individuals with excellent credit. In addition, the higher your score, the more likely you are to qualify for lower rates and enhanced rewards, such as points, miles, and/or cash back.

Used wisely, credit cards can help you continue to build your credit. If not, they can cause you to take on more debt and potentially hurt your credit score.

•   Credit cards are a form of revolving credit that allow you to carry balance from month to month. In return, they may charge very high interest rates. These hover around 20% on average, and can make borrowing very expensive.

•   You can avoid interest payments by paying your bill in full every month, which can help build credit. If you fall behind, however, you’ll carry a balance and owe interest.

•   Beware: Credit card interest compounds. If you continue to carry a balance only making minimum payments, you’ll begin to owe interest on the interest you’ve already accrued, causing your debt to grow.

•   If you’re unable to pay off your card and you default on your loan, you could hurt your credit score.

💡 Quick Tip: With fixed interest rates on loans from $5K to $100K, a SoFi personal loan for credit card consolidation can substantially lower your payments.

Can I Get an Auto Loan with a 680 Credit Score?

With a score of 680, you’ll likely qualify for an auto loan. In fact, 45.90% of new loans went to prime borrowers in 2023. Compare that to the 22.82% of loans that went to super-prime borrowers (those with a score of 720 or higher) and 12.67% of loans that went to subprime borrowers, meaning those with scores between 580 and 619. Prime borrowers, by the way, are considered those with credit scores of 660 to 719.

As a prime borrower, you’ll also likely have access to some of the best interest rates. On average, prime borrowers paid 6.88% in interest on new loans in the period most recently reviewed. Super-prime borrowers did slightly better with average rates of 5.61%, while subprime borrowers were charged a much higher rate of 11.86% on average.

•   Remember to shop around from various lenders to find the best way to finance a car purchase.

•   Building your credit score could help you qualify for lower, super-prime rates.

Can I Get a Mortgage with a 680 Credit Score?

If you’re seeking a mortgage loan, a credit score of 680 should provide a host of options. You will likely qualify for most conventional loans, which typically require a credit score of 620 or higher. These are loans that are not insured or guaranteed by the federal government and are typically what you’ll find at most banks.

Among conventional loans, you’ll likely find a variety of options, including fixed- and adjustable-rate interest rates, as well as different options for length of the loan term.

Since lenders are taking on the risk, they look for individuals with higher credit scores. They’ll also take into account the size of the down payment you can make. The higher the amount, the less risk they need to take on, and the lower your interest rates may be.

Individuals with 680 credit scores should also easily qualify for government-back loans, such as Federal Housing Administration (FHA) loans. These usually require a credit score of 580 with a 3.5% down payment. Or, if you put 10% down, you may qualify with a lower score. Homes purchased through this program must be your primary residence.

If you’ve been in the armed forces, you may qualify for a VA loan. These are offered through the U.S. Department of Veteran Affairs and usually require a credit score of 580 to qualify.

Can I Get a Personal Loan with a 680 Credit Score?

A personal loan is a lump sum payment you agree to pay back in monthly installments. There are few restrictions for how personal loans can be used. For example, they could be used for credit card consolidation, home improvements, even the cost of a wedding celebration.

Borrowers with good credit scores will likely be able to secure a personal loan. And in some cases, a personal loan may be cheaper than other forms of credit, such as high interest credit cards. Currently, the average personal loan interest rates are about 12%, compared to about 20% or higher for credit cards.

As with other forms of credit, the lowest possible interest rates will likely go to borrowers with the highest scores.

Can I Build My Credit Score?

As mentioned above, the higher your credit score, the more likely lenders will offer lower interest rates, which makes borrowing cheaper. So before you apply for a loan, you may want to take steps to build your credit score a bit. Some tips:

•   Always make on-time payments. This is the most important factor in your credit history, comprising 35% of your credit score.

•   Keep your balances low. The amount you already owe represents 30% of your score. Consider paying off debts — especially high-interest debts — to lower your debt-to-income ratio and make more credit available.

•   Work to lengthen your credit history, have a good mix of types of credit (lines of credit and installment loans, for example), and don’t apply for too much credit in a short period of time.

It can take some time to build your credit, so if you know you’ll need to borrow in the future, it can be wise to start as soon as possible.

The Takeaway

With a credit score of 680, you are in the range of what are considered “good” credit scores. That means you’ll likely have access to most types of credit. Before you apply for a loan, however, take steps to ensure you’re getting the best deal possible. Be sure to shop around to multiple lenders for the lowest interest rates and best terms.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.