Is 699 a Good Credit Score? What It Means for Loans
Is 699 a good credit score? Understand its real-world impact on loan applications, interest rates, and your financial future.
A credit score is a numerical representation of an individual’s creditworthiness, typically a three-digit number. It provides lenders with a quick assessment of risk for loan or credit applications, influencing terms and interest rates.
Credit Score Ranges and Classifications
Credit scores are categorized into various tiers, which lenders use to gauge a borrower’s reliability. The two most widely recognized scoring models are FICO and VantageScore, both ranging from 300 to 850. They share similar core factors in their calculations.
Under the FICO scoring system, common classifications include:
- Poor (300-579)
- Fair (580-669)
- Good (670-739)
- Very Good (740-799)
- Excellent (800-850)
A credit score of 699 falls squarely within the “Good” range for FICO. For VantageScore 3.0, a 699 score is also considered “Good” (670-749). A score in the “Good” range indicates to lenders that a borrower is acceptable, signifying a responsible history.
Elements Influencing Your Credit Score
Credit scoring models analyze several categories of information from an individual’s credit report to determine their score. The most impactful factor is payment history, which accounts for approximately 35% of a FICO score and 40% of a VantageScore. This reflects timely and consistent payments, positively affecting the score.
The amount owed, also known as credit utilization, constitutes about 30% of a FICO score. It measures the percentage of available credit used; a lower utilization (ideally below 30%) is viewed more favorably. The length of one’s credit history contributes around 15% to a FICO score. A longer history with established accounts demonstrates more experience managing credit.
The types of credit used, or credit mix, accounts for about 10% of a FICO score. Demonstrating the responsible management of different credit types, such as revolving accounts (credit cards) and installment loans (mortgages, auto loans), can positively influence a score. New credit inquiries make up the remaining 10% of a FICO score. While applying for new credit can temporarily reduce a score, multiple inquiries within a short period may signal increased risk to lenders.
Practical Implications of a 699 Credit Score
A 699 credit score allows access to various financial products, though not with the most preferential terms or lowest interest rates available. Lenders consider borrowers with this score as acceptable, but those with higher scores, particularly 740 or above, qualify for better offers.
Regarding credit cards, a 699 score enables approval for most standard cards, including some with rewards. However, premium credit cards with extensive benefits require scores of 740 or higher for approval. For personal loans, a 699 score makes approval likely, but the interest rates offered might be higher compared to those extended to borrowers with excellent credit.
For auto loans, a 699 score is sufficient for approval. However, a score in the 650-699 range could result in interest rates around 7-9% APR, whereas those with higher scores (750+) might secure rates as low as 3-5% APR. Similarly, a 699 score can qualify an individual for mortgages, including conventional loans which may require a minimum FICO score of 620, or FHA loans with a minimum of 580. A 699 FICO score can lead to a mortgage interest rate around 7.150% APR, while a score in the 760-850 range could see rates closer to 6.751% APR, potentially saving thousands over the loan’s lifetime.
Beyond traditional loans, credit scores can influence other aspects of financial life. Landlords may check credit scores during rental applications, and utility companies might use them to determine deposit requirements. Insurance providers also utilize credit-based insurance scores to set premiums, where a stronger credit rating can lead to lower costs.