Is a 695 Credit Score Good? What It Gets You

A credit score numerically represents an individual’s creditworthiness. This three-digit number influences various financial decisions, from loan approvals to interest rates. Understanding your credit score is important for navigating personal finance and achieving financial goals.

Understanding a 695 Credit Score

Credit scores range from 300 to 850, with higher numbers indicating lower risk to lenders. A 695 credit score falls within the “Good” category for both FICO and VantageScore models. FICO scores between 670 and 739 are good, while VantageScore 3.0 places scores from 661 to 780 in its good range. A 695 score indicates reliable borrowing, but may not qualify for the best terms available to those with excellent credit.

While a 695 score is viewed favorably, it is near the lower end of the “Good” range. Minor negative changes to credit behaviors could shift your score into the “Fair” category, which includes scores from 580 to 669 for FICO and 560 to 669 for VantageScore. Lenders may perceive borrowers in the “Fair” range as having a higher risk of future delinquency. Improving your score offers more financial flexibility.

How Your 695 Score Affects You

A 695 credit score influences eligibility and terms across various financial products. For mortgages, while possible to qualify, a 695 score might lead to higher interest rates or require specific loan types, such as FHA loans, which have more lenient credit requirements. Competitive conventional mortgage rates require a higher score.

For auto loans, a 695 score places you in the “prime” borrower category, increasing your chances of approval. While you may not receive the lowest interest rates available to “super-prime” borrowers, you can still access competitive financing options. In the first quarter of 2025, the average new car loan interest rate for prime borrowers (661-780) was around 6.70%, compared to 5.18% for super-prime borrowers (781 or above).

For credit cards, a 695 score allows access to a variety of unsecured cards. You are likely to qualify for many rewards and cash-back cards, though the most exclusive premium cards with the lowest interest rates might remain out of reach. Many personal loan lenders set minimum credit scores from 610 to 640, so a 695 score is usually sufficient for approval for these loans. Beyond loans and credit cards, your score can also affect rental applications and utility deposits, as landlords and utility providers review credit history to assess reliability.

Key Factors in Credit Score Calculation

Several components contribute to a credit score’s calculation, each carrying a different weight. Payment history is the most significant factor, accounting for approximately 35% of a FICO score. This reflects how consistently accounts are paid on time, with late or missed payments having a notable negative impact.

The amounts owed, also known as credit utilization, is a substantial factor, making up about 30% of a FICO score. This refers to the proportion of available credit currently being used. Keeping balances low relative to credit limits is viewed positively, with utilization below 30% recommended.

The length of credit history contributes around 15% to a FICO score. A longer history of responsible credit management is more favorable, as it provides lenders with more data.

New credit, which includes recent applications and newly opened accounts, accounts for about 10% of the score. Applying for multiple new credit accounts in a short period can temporarily lower a score due to hard inquiries.

The credit mix makes up the remaining 10%. This demonstrates an ability to handle various credit forms, such as revolving accounts and installment loans.

Steps to Improve Your Credit Score

Improving your credit score from 695 involves focusing on the factors that influence its calculation. To enhance payment history, making all payments on time is important. Setting up automatic payments for recurring bills helps ensure timely remittances and avoids missed due dates. Even a single reported late payment can negatively affect your score and remain on your credit report for up to seven years.

To address amounts owed and credit utilization, prioritize reducing revolving balances. Aim to keep your credit utilization ratio, the amount of credit used versus available, below 30% on each credit card and across all accounts. Making multiple smaller payments throughout the billing cycle, rather than one large payment at the end, can help keep reported utilization low.

For the length of your credit history, it is advisable to maintain older accounts, even if they are no longer actively used. Closing older accounts can shorten the average age of your credit history and potentially increase your utilization ratio by reducing your total available credit.

When considering new credit, apply only for what is truly needed and avoid opening multiple new accounts within a short timeframe. Each new credit application results in a hard inquiry, which can cause a small, temporary dip in your score.

Regularly obtaining and reviewing your credit reports from the three major credit bureaus—Experian, Equifax, and TransUnion—is an important step. You are entitled to a free copy of your credit report from each bureau annually through AnnualCreditReport.com. Checking these reports allows you to identify and dispute any inaccuracies which could be negatively impacting your score.