Is 697 a Good Credit Score? What to Know
Decode your 697 credit score. Gain clarity on its standing, what shapes it, and its real-world implications for your financial future.
A credit score is a numerical representation of an individual’s creditworthiness, summarizing their financial reliability. This three-digit number helps lenders quickly assess the risk of extending credit. It influences various financial aspects, from securing loans to determining interest rates, and can impact opportunities for mortgages, auto loans, and credit cards.
Credit Score Fundamentals
A credit score is a three-digit number, typically ranging from 300 to 850, designed to predict a borrower’s likelihood of repaying debt on time. It is derived from information in credit reports maintained by the three major credit bureaus: Equifax, Experian, and TransUnion.
Different scoring models exist, such as FICO and VantageScore. Both models use statistical analysis to evaluate credit behavior and predict default risk. While their precise calculations are proprietary, they provide lenders a snapshot of credit risk at a particular point in time.
Credit Score Ranges and Categories
A credit score of 697 generally falls into the “Good” category across widely used scoring models like FICO and VantageScore. For FICO scores, used by 90% of top lenders, the “Good” range typically spans from 670 to 739.
VantageScore models also categorize 697 as “Good,” with their range extending from 661 to 780. A 697 score sits below the “Very Good” and “Exceptional” tiers. For FICO, “Very Good” starts at 740, and “Exceptional” at 800.
Components of a Credit Score
Credit scoring models, like FICO, weigh various categories of information from credit reports to calculate a score. Payment history is the most influential factor, accounting for approximately 35% of a FICO score. This assesses whether past credit accounts have been paid on time, as consistent on-time payments are a strong indicator of future repayment behavior.
Amounts owed, also known as credit utilization, makes up about 30% of the FICO score. This refers to the percentage of available revolving credit currently being used; a lower utilization rate is viewed more favorably by lenders. The length of credit history contributes around 15% to the score, considering how long accounts have been open. A longer history of responsible credit management can positively impact the score.
New credit accounts for roughly 10% of the score. This factor considers recent applications for credit, which result in “hard inquiries” on a credit report, and the number of newly opened accounts. While a single inquiry typically has a minor effect, multiple new accounts in a short period can signal increased risk to lenders. Finally, credit mix contributes about 10% of the score, reflecting the diversity of credit types an individual manages, such as installment loans and revolving credit. Demonstrating the ability to handle different forms of credit responsibly can be beneficial.
Practical Considerations for a 697 Score
A 697 credit score typically positions an individual favorably for accessing a range of financial products. This score generally allows for approval for various types of loans, including mortgages, auto loans, and personal loans. Credit card applications are also likely to be approved, often with competitive interest rates.
While a 697 score is considered “Good,” it usually does not qualify for the absolute best interest rates or loan terms. For instance, auto loan rates for “prime” borrowers (which includes a 697 score) might average around 6.87% for new cars, whereas “super-prime” borrowers with scores above 780 could see rates closer to 5.25%. Mortgage and personal loan terms may be competitive but not the lowest offered by lenders, who reserve their most advantageous terms for those in the “Very Good” or “Exceptional” credit score tiers.