Is 685 a Good Credit Score? What It Means

A credit score is a numerical representation of an individual’s creditworthiness, indicating the likelihood of repaying borrowed money. Lenders use this three-digit number to assess risk when extending credit. Understanding your credit score is important, as it influences access to various financial products and services.

Understanding Credit Score Ranges

Credit scores are calculated using models such as FICO and VantageScore, generally ranging from 300 to 850. A score of 685 falls within the “Good” category for both models. For FICO scores, the “Good” range is 670 to 739. VantageScore 3.0 categorizes scores from 661 to 780 as “Good.”

While a 685 score is considered good, it often sits at the lower end of this range. Lenders view individuals with scores in this bracket as acceptable or lower-risk borrowers. Higher scores, including those in “Very Good” categories, indicate even lower risk to lenders.

Practical Implications of a 685 Score

A 685 credit score opens the door to many financial products, though the terms offered may not be the best available. For credit cards, a 685 score is generally sufficient for approval, but the selection of cards and their benefits, such as interest rates and credit limits, might be less favorable than for those with higher scores. Auto loans are also accessible with a 685 score, though interest rates may not be the most competitive.

Personal loans can often be obtained with a 685 credit score, but interest rates might be higher than for borrowers with excellent credit. For mortgages, a 685 FICO score generally suggests a high likelihood of approval for a conventional loan. The most advantageous interest rates on mortgages are typically reserved for higher scores, often above 760.

Beyond traditional lending, a 685 credit score holds significance in other areas. Landlords frequently review credit scores for rental applications, with a score of 670 or higher often considered favorable, potentially leading to increased approval chances and lower security deposit requirements. Many insurance companies use credit-based scores to determine premiums for policies, where a higher credit score can correlate with lower rates.

Key Factors Influencing Your Credit Score

Credit scores are derived from information in credit reports, with several components contributing to the calculation.

Payment History

Payment history holds the most weight, typically accounting for about 35% of a FICO score and up to 40% for some VantageScore models. Making timely payments on all debts is important, as even a single late payment can negatively impact the score.

Credit Utilization

The amount owed, also known as credit utilization, is another significant factor, comprising approximately 30% of a FICO score and highly influential for VantageScore models. This factor assesses total debt relative to available credit, and maintaining a low credit utilization ratio, ideally below 30% of available credit, is beneficial.

Length of Credit History

The length of one’s credit history also plays a role, typically making up about 15% of a FICO score and 20-21% of a VantageScore. This factor considers the age of all credit accounts, with a longer history generally viewed more favorably.

Credit Mix

Credit mix refers to the variety of credit accounts an individual manages, such as revolving credit (e.g., credit cards) and installment loans (e.g., mortgages or auto loans). This contributes around 10% to a FICO score. Demonstrating responsible management of different types of credit can be advantageous.

New Credit

New credit, specifically recent applications, accounts for about 10% of a FICO score. Each hard inquiry from a credit application can cause a slight, temporary drop in the score.