Is 692 a Good Credit Score? What You Need to Know

A credit score is a numerical representation of an individual’s creditworthiness, typically a three-digit number between 300 and 850. This score summarizes your financial behavior and indicates the likelihood of repaying borrowed money. Lenders rely on these scores to make informed decisions regarding various financial products, including credit cards, auto loans, and mortgages. Your credit score also influences the interest rates and other terms offered on approved credit.

Credit Score Basics and Ranges

Credit scores are calculated from credit reports, using FICO and VantageScore models. Both use a 300-850 range, though tier categorization varies. Understanding these ranges helps interpret what a particular score signifies about your credit profile.

FICO Scores define ranges as: Poor (300-579), Fair (580-669), Good (670-739), Very Good (740-799), and Exceptional (800-850). VantageScore ranges are: Very Poor (300-499), Poor (300-600), Fair (601-660), Good (661-780), and Excellent (781-850). A 692 credit score falls within the “Good” category for both models. This score is acceptable to most lenders, offering a solid position for many credit opportunities.

What a 692 Credit Score Means for You

A 692 credit score indicates a reliable borrowing history, leading to favorable outcomes for financial products. Lenders consider this range for loan approval, making approval likely. While probable, this score does not qualify for the lowest interest rates or most premium terms, which are reserved for “Very Good” or “Exceptional” credit scores. Expect competitive interest rates aligning with national averages for your credit tier.

For credit cards, a 692 score allows access to a wide selection. You will qualify for many mainstream cards, though elite cards with extensive rewards or lowest interest rates might be out of reach. For personal loans, a 692 score enables approval, potentially for significant amounts (e.g., up to $100,000) without the highest origination fees. While lowest interest rates may be inaccessible, offered rates are reasonable and avoid the highest tiers.

For auto loans, a 692 score is sufficient for approval. As of mid-2024, “Prime” credit individuals (including 692 scores) could expect average interest rates around 6.87% for new cars and 9.36% for used cars. For mortgages, a 692 credit score exceeds minimum requirements for conventional loans (often 620) and FHA loans (as low as 580). While this score supports eligibility, securing the lowest rates requires 740 or higher. Lenders also evaluate income, employment stability, debt-to-income ratio, and down payment.

Key Elements of Your Credit Score

Credit scores derive from several credit report factors, each with specific weight. Payment history is most significant (35% of FICO Score). This assesses on-time payments; late payments, collections, or bankruptcies negatively impact your score. Consistently paying bills on time demonstrates financial responsibility and contributes positively.

Amount owed, or credit utilization, is another substantial factor (30% of FICO Score). This compares credit used to total available credit. Maintaining a low utilization ratio (ideally below 30%) benefits your score; top scores often show single-digit utilization. High utilization signals increased reliance on credit, viewed unfavorably by lenders.

Length of credit history contributes 15% to your FICO Score. This considers the age of your oldest, newest, and average age of all accounts. A longer history of responsible management indicates greater stability and positively influences your score.

Credit mix accounts for 10% of your FICO Score. This refers to account diversity, such as revolving credit (e.g., credit cards) and installment loans (e.g., mortgages, auto loans). Demonstrating responsible management of different credit types is a positive indicator.

New credit (recent applications) makes up 10% of your FICO Score. Each application results in a “hard inquiry,” which can slightly lower your score temporarily. Multiple inquiries in a short timeframe may suggest higher risk to lenders.

Actions to Strengthen Your Credit Score

Improving your credit score involves consistent, disciplined financial habits. Making on-time payments is most impactful. Setting up automatic payments for at least the minimum due helps ensure bills are paid punctually, preventing late payment marks. Even a single 30-day late payment negatively affects your score and remains on your report for up to seven years.

Maintaining low credit utilization is another effective strategy. Keep revolving credit balances (e.g., credit cards) well below limits. While advised to stay below 30% utilization, aiming for lower, ideally single digits, further benefits your score. Regularly paying down balances before your statement closing date helps ensure a low utilization ratio is reported.

Limiting new credit applications preserves your score. Each hard inquiry causes a small, temporary dip. Only apply for credit when genuinely needed, and consider pre-qualification tools, which use a “soft pull” that does not impact your score. Spacing out applications also mitigates the negative effect of multiple inquiries.

Preserving credit history length is beneficial. Avoid closing old accounts, even if unused, as this reduces average account age and shortens your credit history. Keeping old accounts open, perhaps by making small, occasional purchases, helps maintain a longer history of responsible use. While credit mix diversity is a factor, it is less impactful than payment history or utilization. Focus on responsibly managing existing credit rather than opening new accounts solely to diversify.