What Can I Get With a 685 Credit Score?

A 685 FICO credit score positions an individual within the “Good” credit range, specifically between 670 and 739. This score indicates a history of responsible credit management, though it might reflect some past inconsistencies. Lenders generally consider a 685 score as acceptable, offering broad access to various credit products. While this score provides many opportunities, the specific terms, such as interest rates or credit limits, may not be as favorable as those offered to individuals with “Very Good” or “Excellent” credit scores. The average FICO score in the United States was 715 in 2023, placing a 685 score slightly below the national average but still within a solid financial standing.

Credit Card Options

Individuals with a 685 credit score can generally qualify for various unsecured credit cards. These cards often come with slightly higher Annual Percentage Rates (APRs) and potentially lower credit limits compared to those available to consumers with higher credit tiers. Despite this, many issuers provide options specifically for those with “Fair” or “Good” credit, some of which may include basic rewards programs like cashback.

For those looking to further establish or rebuild their credit, secured credit cards present a viable option. These cards require a refundable security deposit, typically ranging from $200 to $2,500, which usually sets the credit limit. Consistent and timely payments on a secured card are reported to the major credit bureaus, helping to build a positive payment history. Some secured cards even offer a pathway to transition to an unsecured card and have the deposit returned after a period of responsible use.

Personal and Auto Loan Access

A 685 credit score generally facilitates access to personal loans, which can be used for purposes such as debt consolidation, home improvements, or unexpected expenses. While approval is likely, the interest rates offered might be moderate and not the lowest available in the market. Lenders assess other factors like income stability and debt-to-income ratio alongside the credit score to determine loan terms.

For auto loans, a 685 credit score is typically sufficient for approval when financing both new and used vehicles. However, similar to personal loans, the interest rates may be higher than those offered to borrowers with excellent credit. For example, in 2022, the average APR for a 60-month new auto loan for individuals with a FICO score between 660 and 689 was approximately 9.19%, while those with scores of 720 or higher received rates around 5.64%. Similarly, for used vehicles, scores in the high 600s might see average rates near 9.06%. It is advisable to compare offers from several lenders to secure the most favorable terms for a vehicle purchase.

Mortgage and Housing Opportunities

A 685 credit score provides access to various mortgage and housing opportunities. For conventional loans, a minimum credit score of 620 is typically required, making a 685 score eligible. However, borrowers with higher scores often qualify for more advantageous interest rates and may face lower or no private mortgage insurance (PMI) requirements. PMI is an additional cost that can be a factor with conventional loans, especially with lower down payments.

Federal Housing Administration (FHA) loans are another strong option, known for their more lenient credit score requirements. With a 685 score, borrowers are above the typical FHA minimum of 580, qualifying for the lowest possible down payment of 3.5%. FHA loans do require both an upfront mortgage insurance premium, which is 1.75% of the loan amount, and an annual mortgage insurance premium that generally continues for the life of the loan.

For eligible veterans and service members, VA loans offer significant benefits, including no down payment and no mortgage insurance. While the Department of Veterans Affairs does not set a minimum credit score, most lenders typically require a FICO score of at least 620 for VA loan approval. Lenders also evaluate factors such as debt-to-income ratio, stable employment history, and income to assess overall financial stability. A 685 credit score is generally viewed positively by landlords, which can make securing rental housing more straightforward.