Is 697 a Good Credit Score? What It Means for You

A credit score is a numerical summary of an individual’s creditworthiness, indicating the likelihood of repaying borrowed funds. This number helps lenders assess risk when considering applications for financial products. Understanding your credit score is important, as it directly influences the terms and availability of credit. This article examines the meaning of a 697 credit score and its practical implications.

Credit Score Ranges

Credit scores are categorized into distinct ranges, indicating financial health. While numerical boundaries vary slightly between scoring models, the overall tiers remain consistent. FICO Scores, widely used, range from 300 to 850. Within the FICO model, categories include “Poor” (300-579), “Fair” (580-669), “Good” (670-739), “Very Good” (740-799), and “Exceptional” (800-850). A 697 credit score falls within the “Good” range, indicating to lenders that you are a reliable borrower.

VantageScore, another prominent model, also uses a 300-850 range. Its categories include “Very Poor” (300-499), “Poor” (500-600), “Fair” (601-660), “Good” (661-780), and “Excellent” (781-850). Under VantageScore, a 697 score is also considered “Good.” While these ranges provide a helpful framework, they serve as general guidelines.

Implications of a 697 Credit Score

A 697 credit score positions an individual favorably for various financial products, though it does not secure the best terms reserved for those with higher scores. For credit cards, a 697 score means a good likelihood of approval, including access to cards with rewards and cash-back offers. However, the interest rates or credit limits offered might not be as competitive as those for applicants with “Excellent” credit.

When seeking an auto loan, a 697 credit score places you in the “Prime” borrower category, which leads to competitive interest rates. For new cars, average rates for prime borrowers (661-780) were around 6.87%, and for used cars, about 9.36%, according to recent data. While these rates are favorable, they are not the lowest available, which are found in the “Super-prime” category for scores above 781.

For mortgages, a 697 score is sufficient to qualify for conventional loans, as many lenders require a minimum score of 620 to 640. While approval is likely, the interest rate may be slightly higher than for borrowers with “Very Good” or “Exceptional” credit. For example, a $400,000 30-year fixed mortgage might have an average APR of 6.878% for a FICO score between 680-699, compared to 6.479% for scores between 760-850.

Obtaining a personal loan with a 697 credit score is possible, indicating eligibility for a decent range of options. However, similar to other loan types, the most competitive interest rates are offered to those with scores above 720 or 800. For instance, the average personal loan rate for borrowers with “good” credit (690-719) has been around 14.87%. Beyond traditional lending, a 697 score can also be beneficial in other areas, such as securing an apartment or avoiding utility deposits, as it signals financial reliability to landlords and service providers.

Scoring Model Differences

Credit scores are calculated using various models, with FICO Score and VantageScore being the most recognized. Both models predict credit risk but use different methodologies. For example, a FICO Score requires at least six months of credit history, while a VantageScore can be generated with one month.

These calculation differences can lead to minor variations in the numerical score an individual receives, even with the same underlying credit report data. FICO and VantageScore may weigh factors like credit utilization or hard inquiries differently. This can influence the specific terms offered for financial products.