Is a 690 Credit Score Good? What It Means For You

Credit scores numerically represent an individual’s creditworthiness, significantly influencing personal finance. Understanding your credit score is important, as it directly affects access to various financial products and their terms. This three-digit number helps lenders quickly assess risk, shaping opportunities for borrowing. A well-managed credit score can lead to more favorable interest rates and terms, while a lower score might limit options or result in higher costs.

Credit Score Fundamentals

A credit score evaluates a consumer’s credit risk, helping lenders determine the likelihood of loan repayment. The two major credit scoring models are FICO Score and VantageScore, both typically ranging from 300 to 850. While their exact algorithms differ, they assess similar aspects of an individual’s credit history.

Credit score calculation is influenced by several factors. Payment history holds the most weight, reflecting whether past credit obligations have been paid on time. Amounts owed, also known as credit utilization, is another significant factor, measuring the percentage of available credit currently being used. Lenders prefer low credit utilization, ideally below 30% of total available credit.

The length of credit history also contributes to the score, with older accounts and a longer overall credit history generally viewed more favorably. Credit mix considers the variety of credit accounts an individual manages, such as credit cards, installment loans, and mortgages. New credit applications and recently opened accounts can temporarily impact a score, as numerous inquiries in a short period may signal higher risk.

The Significance of a 690 Credit Score

A 690 credit score is considered in the “Good” range by most scoring models. For FICO Scores, this range spans from 670 to 739, and for VantageScore, it is from 661 to 780. This places a 690 score slightly below the national average FICO Score.

Lenders view a consumer with a 690 score as a moderate risk borrower. While not in the “Very Good” or “Excellent” tiers that offer the best terms, a 690 score indicates reliable payment history and responsible credit management. Lenders are generally willing to extend credit to individuals in this range.

A 690 score suggests a consistent ability to manage credit obligations, making individuals more attractive candidates than those with lower scores. However, there is room for improvement to access even more favorable interest rates and loan terms. The perceived risk is lower than for those with scores below 670, but slightly higher than for those above 740.

Accessing Financial Products with a 690 Score

Individuals with a 690 credit score are eligible for a wide array of financial products, though not always with the most preferential rates.

Mortgage Loans

A 690 score is generally sufficient to qualify for conventional mortgages, which often require a minimum score of 620. It also allows access to government-backed options like FHA, VA, and USDA loans. However, interest rates might be slightly higher compared to borrowers with “Very Good” or “Excellent” scores (740 and above).

Auto Loans

A 690 credit score usually allows access to competitive rates for auto loans, placing borrowers within the “Prime” category for many lenders. For example, in the first quarter of 2025, the average interest rate for a new car loan for a borrower with a score in the 661-780 range was around 6.70%, while a used car loan could be around 9.06%. Individuals with higher scores, such as those above 780, might secure even lower rates, typically around 5.18% for new cars.

Personal Loans

A 690 score is considered good and generally enables approval for personal loans. Interest rates can vary significantly based on the lender, loan amount, and term. Average personal loan interest rates for consumers with scores between 690 and 719 were approximately 14.48% in the past year, which is higher than for those with scores above 720.

Credit Cards

A 690 score allows access to a good selection of credit cards, including those with rewards programs and reasonable interest rates. While premium travel or cash-back cards with the most lucrative benefits might be reserved for those with higher scores, individuals with a 690 score can qualify for cards that offer valuable perks. It is important to compare annual percentage rates (APRs) and fees.

Strategies for Credit Score Enhancement

Improving a 690 credit score involves consistent financial discipline focused on the factors that influence it.

Prioritize On-Time Payments

On-time payments are the most impactful step, as payment history accounts for a significant portion of the credit score. Setting up automatic payments for all bills can help ensure payments are never missed, avoiding negative marks on your credit report.

Manage Credit Utilization

Keeping credit card balances low, ideally below 30% of the total available credit limit, can significantly boost a score. Consumers with excellent scores often maintain utilization rates in the single digits.

Review Credit Reports

Regularly review credit reports from all three major bureaus—Experian, Equifax, and TransUnion—to identify and dispute any errors or inaccuracies. Correcting mistakes ensures your credit score accurately reflects your financial behavior.

Be Mindful of New Credit

New credit applications can temporarily lower a score. Each hard inquiry for new credit can lower a score by a few points, and multiple inquiries in a short period can be viewed negatively by lenders. Apply for new credit only when genuinely needed and space out applications. Maintaining a diverse credit mix, including both revolving and installment accounts, while keeping older accounts open and active, can also contribute positively to a score over time.