By Kim Franke-Folstad

A 616 credit score isn’t good or bad, though it is at the lower end of what is considered the “fair” range using the FICO® credit scoring model. That might make it more challenging for a borrower to get approved for a credit card or loan or to qualify for lower rates and fees.

Read on for a look at what you can expect with a 616 credit score.

What Does a 616 Credit Score Mean?

Typically, a credit score must be near or slightly above the average for U.S. consumers to be considered “good.” Using the popular FICO scoring model, that’s anywhere from 670 to 739. A FICO Score in the 580 to 669 range is generally categorized as fair. And a score that’s lower than 580 is “poor.”

Keep in mind, though, that it’s up to each lender to decide how it will assess credit scores, and lenders have multiple scoring models to choose from.

Some lenders may look at a 616 credit score as a bit of a red flag — a sign that you may have had some past credit problems or perhaps lack a credit history. They’ll consider you to be more of a risk than a borrower with a higher credit score.

But that doesn’t mean you won’t stand a chance when you apply for a loan or credit card. If you have other factors working for you — say, a low debt-to-income (DTI) ratio, solid employment and a good income, cash in the bank, or other assets — you still may qualify. Some credit cards and loans are designed to work for borrowers with fair or poor credit. But you may be asked to pay a higher interest rate or to secure the loan with some type of collateral.

What Can You Get with a 616 Credit Score?

You may have a harder time qualifying as a borrower with a credit score that’s on the borderline between fair and poor, but there are options available.

Can I Get a Credit Card with a 616 Credit Score?

With a 616 credit score, you might have a better chance of qualifying for a secured credit card vs. an unsecured credit card. But that isn’t necessarily a bad thing: Using a secured card can be helpful as you work to improve your credit reputation.

A secured card works pretty much like a traditional credit card, except that you’ll have to put down a deposit that “secures” the card. The credit card company will hold onto your money just in case you default on your payments, but you’ll get the deposit back if you close your account or if you transition to an unsecured card later on. Your credit limit with a secured card is usually the same as your deposit.

Whether you qualify for a secured or unsecured card, it’s likely that your interest rate and other costs will be on the high end until you can improve your creditworthiness. So it’s important to compare offers, preferably using a preapproval tool, so you’ll have a good idea as to whether you’ll get the card or not before you actually apply.

Remember to look for cards that come with useful credit-building elements, such as free credit score monitoring and/or an app that makes it easy and convenient to track your spending and saving.

It’s also important to be sure the credit card you choose regularly reports to all three of the major credit bureaus.

Can I Get an Auto Loan with a 616 Credit Score?

The minimum credit score required to get an auto loan can vary. And lenders may use an industry-specific scoring model for auto loans that works a little differently than your basic credit score. But as with most types of borrowing, the higher your score, the more likely you are to receive better financing terms.

Coming up with a higher down payment or getting a cosigner may help you get a loan and/or a better annual percentage rate (APR). Both moves can make you a lower risk for lenders. But with a 616 score, you can expect to get an APR that’s at least a few percentage points higher than car buyers with credit scores in the next highest range.

If you’re wondering if it’s smarter to buy a new or used car, there are pros and cons to both. Though it may seem counterintuitive, it actually may be easier to get financing for a new car, because it can be more difficult for lenders to accurately value a used car. But a used car is likely to have a lower price that’s easier on your budget.

Can I Get a Mortgage with a 616 Credit Score?

Requirements can vary with different types of mortgages, and lenders may have their own credit score requirements as well. Here are some basics to know:

•   If you’re applying for a conventional mortgage loan — a loan from a private lender that isn’t insured by a government agency — you typically will need a credit score of at least 620.

•   Lenders also like to see a minimum credit score of 620 for a VA loan, which is backed by the U.S. Department of Veterans Affairs. However, some lenders will accept a score as low as 580.

•   With a government-insured FHA loan, you’ll need a minimum 580 credit score to qualify for a down payment as low as 3.5%. Applicants with lower scores, down to 500, must put down at least 10%.

•   Considering a government-backed USDA loan? A minimum score of 640 is recommended, though borrowers without a credit history may be evaluated through other criteria.

Though a 616 credit score is below the preferred minimum for most of these loan types, you may want to talk to a mortgage professional about whether you could qualify and what option might be right for you. If you have stable employment, a low DTI ratio, and other positive information on your application, you might have a better chance of getting the type of loan you want. But you should be prepared to pay a higher interest rate than you would if you had a better credit score.

Can I Get a Personal Loan with a 616 Credit Score?

There are personal loans that are geared specifically to borrowers with fair or poor credit scores. This means you probably can find a lender who will approve your application with a 616 credit score, especially if the loan is in a lower amount and/or you’re willing to pay a higher interest rate.

One option to consider, if you have an asset that you’re willing and able to put up as collateral, is a secured personal loan. With this type of loan, the lender is taking less risk, which may make qualifying easier. And the interest rate may be lower than with an unsecured personal loan.

The overall cost of borrowing is key when you’re considering a personal loan. Credit cards are convenient and useful for smaller, everyday amounts or purchases that might earn points. But even unsecured personal loans tend to have lower interest rates than credit cards, which can make them a good choice for larger expenses. And knowing you’ll have a fixed payment to make every month can help you stay disciplined and on track.

Wondering how a personal loan might compare to other financing options? A personal loan calculator can help you determine how much your monthly payments might be, and if you could save by using a personal loan to pay off an existing loan or high-interest credit card balance.

You also may find it makes sense to use a credit card consolidation loan to simplify your finances and help you save money.

The Takeaway

A 616 credit score may not be considered “good,” but it is a good start if you’re trying to build or rebuild your credit reputation.

You may find that you’ll have to pay a higher interest rate when you borrow than you would if you had a higher score. But if you consistently pay bills on time — and use the tools available to help you keep improving your credit score — you can likely expect to qualify for better financing options down the road.

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.

FAQ

Is 616 a bad credit score?

A 616 credit score is neither good nor bad. It’s considered on the lower end of “fair,” according to the FICO scoring model. And it’s lower than the average U.S. credit score of 717.

Can I buy a house with a 616 credit score?

Generally speaking, you need a credit score of at least 620 to qualify for a mortgage loan. However, some lenders may offer loans to borrowers with a score as low as 500. A mortgage professional can help you determine the option that best fits your situation.

What can I get with a 616 credit score?

A 616 credit score is considered fair. You might qualify for secured credit cards, personal loans, or even a mortgage, though you’ll likely need to pay higher interest rates and fees.

By Kim Franke-Folstad

Here’s some good news: If you have a 696 credit score, you’re sitting firmly in what is considered the “good” range using both FICO® and VantageScore credit scoring models. And that could make it easier for you to qualify for a credit card or loan.

But because 696 is still a bit lower than the average U.S. credit score in 2024 (for FICO that’s 717, and for VantageScore it’s 701), even if you’re approved, you may not be offered a lender’s lowest interest rates and fees.

If you’ve been working to build or rebuild your credit, and you’re curious about where you stand as a potential borrower, read on for a look at what you can expect with a 696 credit score.

What Does a 696 Credit Score Mean?

A credit score typically must be near or slightly above the average for U.S. consumers to be considered “good.” Using the popular FICO scoring model, that’s anywhere from 670 to 739. Although a 696 score will likely be solid enough to get you a loan or credit card when you apply, there’s still a way to go before moving into the “very good” range (740 to 799) or the “exceptional” range (800-plus).

You may have to bump up your score a little more to find a really competitive offer. Borrowers who appear to be the lowest risk can anticipate receiving better terms and other perks.

What Can You Get with a 696 Credit Score?

It’s important to note that lenders have multiple FICO scoring models to choose from, including some that are industry-specific (for auto loans, mortgages, etc.). And it’s up to individual lenders to decide how they will assess credit scores.

Lenders also generally look at more than credit scores when making their decisions. If you have other factors working for you (a low debt-to-income (DTI) ratio, solid employment and a good income, cash in the bank or other assets), they’ll usually take that into consideration.

With that in mind, here’s what you may be able to get with a 696 credit score.

Can I Get a Credit Card with a 696 Credit Score?

A 696 credit should be good enough for you to be approved for an unsecured credit card. But you may not qualify for a luxury or premium card, the lowest annual percentage rate (APR) offered, the highest credit limit, or certain rewards or privileges.

To find the card that’s best for your current circumstances, it can be helpful to use a preapproval tool to compare various offers. That way, you can get a good idea as to whether you’ll be approved for the card you want before you actually apply.

While you’re comparison shopping, you also may want to look for cards that come with free credit score monitoring and/or an app that makes it easy and convenient to track your spending and saving. These extras can come in especially handy if you’re hoping to keep improving your credit.

Can I Get an Auto Loan with a 696 Credit Score?

The minimum credit score needed to get a car loan varies. And lenders may use an industry-specific scoring model that works a little differently than your basic credit score. But as with most types of borrowing, the higher your score, the more likely you are to receive better financing terms.

With a 696 credit score, you can expect to get an average APR that’s at least one or two percentage points higher than what car buyers with credit scores in the next highest range are paying.

By the way, if you’re wondering if it makes more sense to buy a new or used car, there are pros and cons to both. It may seem counterintuitive, but it actually can be easier to get financing for a new car. A used car is likely to have a lower price, though, which can be easier on your budget.

Can I Get a Mortgage with a 696 Credit Score?

Loan requirements, including minimum credit scores, can vary with different types of mortgages. And lenders may have their own credit score requirements as well. Here are some basics to consider:

•   If you’re applying for a conventional mortgage loan, you typically will need a credit score of at least 620. With a 696 credit score, you’re likely to be approved, but lenders probably won’t be offering you the best interest rates available.

•   Although the Department of Veterans Affairs doesn’t set a minimum credit score requirement for VA loan borrowers, lenders typically like to see at least a 620. And you may get a lower interest rate with your 696 credit score.

•   Considering a government-insured FHA loan? Borrowers with a credit score as low as 500 can qualify. If your credit score is between 500 and 579, your minimum down payment is 10%. If your credit score is 580 or higher, you must put down a minimum of 3.5%.

•   A minimum score of 640 is recommended for a government-backed USDA loan, although borrowers without a credit history may be evaluated through other criteria.

Though a 696 credit score should be high enough to qualify for any of these loan types, you may want to talk to a mortgage professional about how various costs might affect your monthly payments and which option might be right for you.

Can I Get a Personal Loan with a 696 Credit Score?

Unless lenders see some potential red flags on your application, you should be able to qualify for unsecured personal loans with a 696 credit score.

Your interest rate probably won’t be as low as what borrowers in the very good and exceptional ranges are offered. And you may have to settle for a lower loan amount. Still, personal loans tend to have lower interest rates than credit cards, which can make them a good choice for larger expenses. And you may find it makes sense to use a credit card consolidation loan to simplify your finances. Knowing you’ll have one fixed payment to make every month can help you stay disciplined and on track with your budget.

A personal loan calculator can help you determine how much your monthly payments might be if you choose to use a personal loan to pay for a large medical bill, a wedding, home improvements, or something else that’s important to you. You also can calculate how much you could save by using a personal loan to pay off any existing high-interest debt that’s getting in the way of your goals.

The Takeaway

A 696 credit score is generally considered to be in the “good” range, and it’s a great start if you’re trying to improve your credit reputation. Most lenders are likely to treat you as a creditworthy candidate when you apply for financing.

That said, you still may end up paying a higher interest rate than you would if you had a credit score in the “very good” or “exceptional” range. But if you keep paying your bills on time, and use the tools that can help you keep increasing your credit score, you can expect to qualify for even better financing terms in the future.

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.

FAQ

What is a good FICO Score?

FICO scores run the gamut from 300 to 850, which is considered a perfect score. A score between 670 and 739 is considered “good.”

What credit score do I need for a $250,000 house?

In order to qualify for a conventional loan for a $250,000 house, you’ll likely need to have at least a 620 credit score.

What can I get with a 696 credit score?

A 696 credit score is considered good. With it, you likely can get approved for a variety of credit products, such as an unsecured credit card, personal loan, or mortgage. However, you may be charged higher interest rates and fees.