Is 690 a Good Credit Score? What to Know

A credit score is a numerical representation of an individual’s creditworthiness, indicating the likelihood of repaying borrowed funds. This three-digit number, typically ranging from 300 to 850, influences access to various financial products and their associated terms. Lenders use these scores to assess risk when evaluating applications for credit cards, loans, and other financing.

Understanding Credit Score Scales

Credit scores are categorized into distinct ranges, reflecting different levels of credit risk. The two most widely used scoring models in the United States are FICO and VantageScore, both operating on a scale from 300 to 850. While their exact ranges for each category may differ, they provide a common framework for understanding credit health.

For FICO Scores, 670 to 739 is considered “good,” with scores above 740 falling into “very good” or “exceptional” categories. VantageScore 3.0 classifies a “good” score between 661 and 780. A 690 credit score falls within the “good” range for both models. This designation suggests a responsible borrower who generally manages credit well.

Implications of a 690 Credit Score

A 690 credit score positions an individual favorably for accessing a variety of credit products, though typically not with the absolute best terms available. Lenders view a 690 score as acceptable, indicating a moderate risk borrower, which influences the interest rates and terms offered.

For mortgage loans, a 690 score can qualify you for conventional mortgages, and it comfortably exceeds the minimum for FHA loans. However, interest rates on these loans will likely be higher compared to those offered to borrowers with scores in the “excellent” range, such as 740 or above. This difference in interest rates can accumulate to thousands of dollars over the loan’s lifetime. Similarly, with auto loans, a 690 score generally leads to approval, but the interest rates may be less competitive than for those with higher scores. For instance, in early 2025, a 690 score might see an average new car loan interest rate around 6.7%, while scores above 780 could access rates closer to 5.18%.

When considering personal loans and credit cards, a 690 score typically allows access to many options. Credit cards designed for individuals with good credit, including some rewards cards, are generally accessible, though premium perks might be reserved for higher scores. Personal loans are also available, but the interest rates may not be the lowest, especially for unsecured loans. A 690 score indicates eligibility for most loans and credit cards, but the specific terms, such as interest rates and credit limits, may not be as favorable as those offered to individuals with very good or exceptional credit.

Components of a Credit Score

Credit scores are calculated using information from credit reports, with various factors contributing to the overall numerical value. FICO and VantageScore models generally consider similar categories.

Payment history: This is the most significant factor, typically 35% of a FICO Score. It assesses whether bills have been paid on time, as late or missed payments negatively impact the score.
Amounts owed (credit utilization): Representing about 30% of a FICO Score, this measures the percentage of available credit currently being used. Lower utilization rates are generally more favorable.
Length of credit history: Accounting for approximately 15%, this considers how long credit accounts have been open, including the age of the oldest and newest accounts.
New credit: Making up about 10%, this looks at recent credit inquiries and newly opened accounts. Frequent applications can temporarily lower a score.
Credit mix: The remaining 10% assesses the variety of credit accounts, such as credit cards, installment loans, and mortgages.

Steps to Enhance Your Credit Score

Improving a credit score involves consistent financial discipline. Paying bills on time is paramount, as payment history carries the most weight in credit scoring models. Setting up automatic payments or reminders can help ensure timely payments and avoid negative marks.

Managing credit utilization is another impactful step; it is generally recommended to keep the amount of revolving credit used below 30% of the total available credit. Paying down balances, particularly on credit cards, helps lower this ratio.

Avoiding opening many new credit accounts in a short period is advisable, as each application typically results in a hard inquiry that can temporarily reduce the score. Regularly reviewing credit reports for inaccuracies from all three major credit bureaus—Experian, Equifax, and TransUnion—is beneficial. Disputing any errors can help ensure the score accurately reflects credit behavior. Maintaining older credit accounts, even if inactive, can positively contribute to the length of credit history.