Is 672 a Good Credit Score?
Is 672 a Good Credit Score?
By Jackie Lam
If you’re wondering if a 672 credit score is good, rest assured that it is. A good credit score enhances your purchasing power as a borrower. The higher your credit score, the more likely you are to get approved for loans and credit cards with more favorable rates and terms.
Here, we’ll examine the details of what a credit score of 672 means and the types of loans you may be able to qualify for.
Key Points
• A 672 credit score is considered good, enhancing loan and credit card approval chances.
• While good, a 672 credit score may not be high enough to secure the best interest rates available.
• A 672 credit score can help secure financing for major purchases like a car or home.
• Improving a 672 credit score can lead to more favorable loan terms and conditions.
• For mortgages, a 672 credit score meets the minimum requirements for conventional, FHA, and USDA loans.
What Does a 672 Credit Score Mean?
A credit score is a three-digit number that reflects your creditworthiness, or how likely you are to pay back the money you borrowed. It’s just one factor that lenders consider when making decisions. Your debt-to-income ratio (DTI), savings and assets, and income also have an impact on whether you get approved for credit.
Your credit score is from 300 to 850. Typically, the higher your score, the better your chances of securing credit with lower interest rates. There are two main credit scoring models: FICO® and VantageScore®. FICO, which is used by most lenders, categorizes credit scores as follows:
• Poor: 300-579
• Fair: 580-669
• Good: 670-739
• Very Good: 740-799
• Excellent: 800-850
As you can see, a 672 credit score is considered “good,” and you’ll likely be seen as lower risk by lenders. That said, what you can obtain with that score depends on the lender or creditor, as each has its own qualifications and lending criteria.
What Else Can You Get with a 672 Credit Score?
As we discussed, a 672 credit score is good, and with it, you should be able to qualify for various credit cards, loans, and other types of financing. But you might not get the best interest rates and terms — those are usually offered to borrowers with “very good” or “excellent” credit scores.
If you’re able to wait a little bit before borrowing — and focus on building a strong credit score — you may be able to land better terms and rates. Some effective strategies include staying on top of monthly debt payments, paying down debts, and applying for credit only when necessary.
Can I Get a Credit Card with a 672 Credit Score?
There’s no minimum credit score required for a credit card. But provided your overall financial profile is satisfactory, you’ll likely get approved for an array of cards with a 672 score. Note that you might not get offered cards with the most robust perks, like cash back and travel rewards. To increase your odds of getting approved for a broader selection of credit cards at more favorable terms, focus on building up your score.
Can I Get an Auto Loan with a 672 Credit Score?
Like credit cards, there’s no magic credit score required when applying for a car loan. But in general, the higher your score, the more likely you are to receive a lower rate.
Consider 2024 data from Experian®, which found that borrowers with a 672 credit score receive an average APR of 6.87% for a new car and 9.36% for a used car. By comparison, borrowers with a credit score of 781 or higher are looking at an average interest rate of 5.25% for a new car loan and 7.13% for a used car.
Of course, interest rates are only one factor to consider when budgeting for a car. You’ll also want to think about the purchase price, fuel and maintenance costs, and financing charges.
Can I Get a Mortgage with a 672 Credit Score?
Yes, getting a mortgage with a 672 credit score is possible, though you’ll need to check the lender’s criteria. Here are the minimum credit score requirements for different types of home loans:
•
Conventional home loans and VA loans: Conventional loans typically require a 620 minimum credit score for fixed-rate mortgages, and 640 for adjustable-rate mortgages. A 706 credit score can give borrowers better interest rates and terms.
• FHA loans: If you’re interested in a loan backed by the Federal Housing Administration (FHA), you’ll need a minimum credit score of 580 with a 3.5% down payment, though you might qualify with a score as low as 500 with a 10% down payment.
• USDA loans: Loans backed by the USDA typically require a minimum credit score of 640. A full credit review is usually performed if your score falls below that.
Can I Get a Personal Loan with a 672 Credit Score?
A 672 credit score puts you in the good graces of personal loan lenders, and you can likely get approved for financing. Other criteria, like your debt-to-income ratio, employment, and income, will also play an important role in their decision.
With a personal loan, you can use its proceeds for anything from funding a wedding or dream vacation to sprucing up your home. It can also be a good option to consolidate your existing high-interest credit card debt. In fact, a credit card debt consolidation loan is within reach with a 672 score. With this type of loan, you may be able to save on interest, lower your monthly payments, or both. Just be sure the payments work for your budget and that you can stay on top of your payment plan.
The Takeaway
If you’re wondering if a 672 credit score is good or bad, you can rest assured that it’s in good territory. You’ll probably get the green light for many types of financing but may not qualify for the best terms and rates. To build your credit score, consider strategies like paying bills on time, paying down balances, and avoiding applying for multiple credit cards or loans in a short timeframe.
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.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
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