Is a Credit Score of 687 Good? What You Need to Know

A credit score is a three-digit number that evaluates an individual’s creditworthiness and helps lenders assess the risk of extending credit. Understanding your credit score is important for managing your financial well-being.

Understanding Credit Score Ranges

Credit scores are generated by models like FICO and VantageScore, using a range from 300 to 850. A higher score indicates lower risk to lenders. While specific ranges vary between models and lenders, general categories exist for credit quality.

For FICO Scores, widely used by lenders, a score between 670 and 739 is considered “Good.” VantageScore models categorize scores similarly, with “Good” falling between 661 and 780. A 687 credit score falls within this “Good” range, indicating you are seen as a responsible borrower. While not in the “Excellent” tier, it is above the “Fair” or “Poor” categories, suggesting a positive credit history.

Implications of a 687 Credit Score

A 687 credit score allows access to various financial products, including loans and credit cards. Lenders view individuals with scores in this range as acceptable borrowers. You will likely qualify for most credit cards, personal loans, and auto loans.

However, interest rates and terms offered may not be as favorable compared to those with “Very Good” or “Excellent” credit scores. For instance, auto loan interest rates for a 687 score might be higher than for scores above 720. For mortgages, a 687 score meets the minimum requirements for conventional loans, but borrowers with higher scores may secure lower interest rates. Credit card offers may also come with slightly higher annual percentage rates (APRs) or more modest initial credit limits.

Factors Influencing Your Credit Score

Several elements contribute to your credit score. Payment history holds the most weight, accounting for 35% of a FICO Score. This factor assesses whether payments have been made on time.

The amount owed, also known as credit utilization, makes up about 30% of your FICO Score. This considers the proportion of available credit being used. The length of your credit history, reflecting how long accounts have been open, contributes around 15%. The types of credit used, such as a mix of revolving and installment accounts, and new credit applications, each account for about 10% of the score.

Strategies for Credit Score Improvement

Improving a 687 credit score involves focusing on influencing factors. Consistently making on-time payments is the most impactful action. Even a single late payment can negatively affect your score. Setting up automatic payments helps ensure timely submissions.

Reducing your credit utilization is another effective strategy. Keep credit card balances below 30% of your available credit limits. Paying down high balances can significantly improve your score.

Avoiding opening too many new credit accounts in a short period is advisable, as new credit inquiries can temporarily lower your score. Maintaining older accounts, even if inactive, benefits your score by contributing to a longer credit history. Regularly reviewing your credit reports for errors and disputing inaccuracies helps ensure your score accurately reflects your credit behavior.