Is a 690 Credit Score Good? What It Means for Finances

A credit score is a numerical representation of an individual’s creditworthiness. Lenders use it to assess the potential risk of extending credit. Understanding your credit score is important for financial planning, as it influences access to various financial products. This three-digit number provides a snapshot of a consumer’s financial reliability.

Credit Score Ranges Explained

Credit scores are categorized into ranges reflecting different levels of credit risk. The most common systems, FICO and VantageScore, typically use a scale from 300 to 850. For FICO Scores, 670 to 739 is “good,” 740 to 799 is “very good,” and 800 to 850 is “exceptional.” Scores between 580 and 669 are “fair,” and 300 to 579 are “poor.”

VantageScore also uses a 300 to 850 range, with slightly different categories. A VantageScore between 661 and 780 is “good” or “prime.” Scores above 780 are “very good” or “super prime,” and those below 661 are “fair,” “poor,” or “very poor.” A 690 credit score is in the “good” range for both FICO and VantageScore models, indicating a solid credit history. The average FICO Score in the U.S. was 715 as of 2024, placing a 690 score slightly below the national average.

What a 690 Score Means for Your Finances

A 690 credit score, in the “good” range, generally allows access to various financial products, though not always with the most favorable terms. Lenders view individuals with this score as acceptable borrowers. You may qualify for loans and credit cards, but interest rates and conditions might not be as competitive as those offered to borrowers with very good or excellent scores.

For auto loans, a 690 score can lead to approval, but average interest rates may be higher than for those with top-tier credit. For example, in the first quarter of 2025, buyers with a 690 credit score received average interest rates around 6.7% for new cars and 9.06% for used cars. This contrasts with rates for those with scores above 780, who might secure rates around 5.18% for new cars or 6.82% for used cars. The difference in interest rates can add thousands of dollars to the total cost of a loan over its lifetime.

For mortgages, a 690 score is generally sufficient to qualify for many conventional loans, as minimum scores often start around 620. However, lenders may offer higher interest rates or require additional documentation compared to applicants with higher scores. For credit cards, a 690 score makes many options accessible, including some rewards and cashback cards. Premium travel cards or those with the most generous perks might still be challenging to obtain, and approved cards could come with lower credit limits or higher interest rates.

Factors That Build Your Credit Score

Credit scores are calculated based on several factors from your credit report. Payment history holds the most weight, accounting for about 35% of a FICO Score. This reflects your track record of paying bills on time; consistent on-time payments are crucial for a strong score. Even a single payment 30 days or more past due can negatively impact a score.

The amount owed, also known as credit utilization, is another major factor, making up about 30% of a FICO Score. This refers to the percentage of your available revolving credit currently in use. Keeping credit utilization low, generally below 30% of your total credit limit, indicates responsible credit management. Higher utilization rates can suggest greater reliance on credit, potentially lowering your score.

The length of your credit history contributes approximately 15% to a FICO Score. This factor considers how long your credit accounts have been open, including the age of your oldest account and the average age of all accounts. A longer history of responsible credit use generally has a positive influence on your score.

New credit inquiries and recently opened accounts account for about 10% of a FICO Score. When you apply for new credit, a hard inquiry is typically placed on your credit report, which can cause a small, temporary dip. Opening multiple new accounts in a short period might signal increased risk to lenders.

Finally, your credit mix makes up the remaining 10% of a FICO Score. This factor assesses the diversity of your credit accounts, such as a combination of revolving credit (like credit cards) and installment loans (like mortgages or auto loans). Demonstrating the ability to manage different types of credit responsibly is seen favorably by lenders.