What Can I Get With a 675 Credit Score?

Credit scores serve as a numerical representation of an individual’s creditworthiness, influencing various financial opportunities. These three-digit numbers provide lenders and other entities with a snapshot of how responsibly an individual manages their financial obligations. A higher score indicates a lower risk to lenders, potentially leading to more favorable terms on financial products. Understanding your credit score is a fundamental aspect of personal finance, as it directly impacts access to credit and the associated costs.

Understanding Your 675 Credit Score

A 675 credit score falls within the “Good” range for both major scoring models, FICO and VantageScore. FICO scores consider “Good” to be between 670 and 739, while VantageScore places “Good” between 661 and 780. This positioning suggests a responsible credit history, indicating that lenders view individuals with this score as acceptable borrowers.

While a 675 score is considered good, it resides at the lower end of this range, meaning it may not unlock the best interest rates or most exclusive offers available to those with higher scores. Individuals with this score are solid prospects, but there is still room for improvement to access more advantageous financial products. Moving into the “Very Good” range (740-799 for FICO) can lead to lower interest rates and improved borrowing terms.

Accessing Credit Cards

A 675 credit score opens doors to a variety of credit card options, though the most premium cards with extensive benefits might still be out of reach. Many issuers offer cards specifically designed for individuals with good credit, including rewards cards, balance transfer options, and some with lower interest rates. These cards can help further build credit history when managed responsibly.

Initial credit limits for a 675 score might range from $500 to $5,000, depending on the specific card and issuer. Interest rates, or Annual Percentage Rates (APRs), on these cards vary but fall within the average range. For example, average credit card interest rates can be around 19% to 28% for those with good credit, though they may be higher. Paying the full balance each month avoids interest charges entirely, regardless of the APR.

Credit cards accessible with a 675 score include general rewards cards or those from major banks that report to all three credit bureaus, aiding in credit building. Secured credit cards, which require a cash deposit, are also available and can be a good option for solidifying credit, though a 675 score allows access to unsecured cards. Focusing on cards with low or no annual fees and reasonable interest rates can be beneficial.

Securing Various Loan Types

A 675 credit score allows individuals to secure various types of loans, though the terms, such as interest rates, may not be the most competitive compared to those with higher scores. Lenders consider this score acceptable for a broad range of credit products.

For personal loans, a 675 score qualifies an applicant, with interest rates ranging from 8% to 25% APR, depending on the lender and specific loan terms. Loan amounts range from a few thousand dollars up to $50,000 or more, with repayment periods spanning two to five years. These loans are frequently used for purposes like debt consolidation or home improvements.

For auto loans, a 675 score is sufficient for approval, but interest rates will be higher than for borrowers with excellent credit. For new cars, rates average around 6% to 9% APR, while used car rates could be higher, up to 9% to 14% APR. Making a down payment can lead to more favorable terms and lower monthly payments.

For mortgages, a 675 credit score allows access to both Federal Housing Administration (FHA) and conventional loans. FHA loans are government-insured and permit lower credit scores, starting at 580 for a 3.5% down payment. Conventional loans, which are not government-insured, require a minimum credit score around 620, but a 675 score may result in a slightly higher interest rate than for those with scores above 740. Down payments for conventional loans can range from 3% to 20% or more, with private mortgage insurance required for down payments less than 20%.

Impact on Other Financial Opportunities

A 675 credit score influences other financial aspects. Landlords and property managers review credit reports as part of their tenant screening process. A 675 score is viewed positively, falling within the “Good” range that many landlords prefer, looking for scores of 620 or higher. While approval is likely, a higher security deposit may be requested in some competitive rental markets.

Utility companies, such as those providing electricity, gas, or internet services, may check credit scores when a new account is established. A 675 score can help avoid the requirement of a security deposit, which can range from $100 to $300 or more. A good credit history indicates reliability, reducing risk for utility providers.

Insurance premiums, particularly for auto and home insurance, are affected by credit-based insurance scores. These scores are derived from information in credit reports but are not identical to standard credit scores. In most states where it is permitted, a good credit-based insurance score, influenced by a 675 score, can lead to lower insurance premiums. Insurers use these scores to predict the likelihood of future claims, and a higher score suggests a lower risk, resulting in cost savings.