Is a 680 Credit Score Good?
In past entries, we have taken a look at a wide range of credit-related issues, including understanding what your FICO credit score actually includes and tips for getting a “perfect” 850 credit score. Today, we are kicking off a new series that will look specifically at tips that apply to you — depending on where you fall on the creditworthiness spectrum. Someone with a very high score, for example, will encounter different opportunities and challenges than someone with a very low score.
To start, we’re going to begin with a score of 680 — this is generally considered “good” credit, as is any score up to about 719; at 720 or above, you are generally considered to have “excellent” credit; 679 or less is “average”-or-below territory.
Life Is Good with Good Credit
Scores are calculated by weighing a variety of factors including, in order of importance: whether or not you pay every single bill on time, how much available credit you have in comparison to your open debts, and whether or not you have recently applied for any new credit.
With a score of 680, you should have no issues applying for and receiving credit. That could include a new credit card, a mortgage or home equity loan, a car loan or refinancing. You might not qualify for the very best interest rates out there. Those ads for zero percent financing on a vehicle purchase or lease or high- or no-limit credit cards are typically reserved for the uppermost credit tier. Moreover, it is also worth keeping in mind that lenders rarely consider your credit score in isolation. They will also look at factors like your capacity to pay your debts, your collateral, and your character when you apply for a loan.
Of course, if you’re at 680, an “excellent” score is not that far off. By making all your payments on time, never overextending your credit, and monitoring your report for inaccurate information — and taking action if you discover any — you could make it to 720 and beyond.
In today’s world, credit scores aren’t just used to decide whether or not you qualify for new credit and determine your interest rate. With your permission, prospective landlords can pull your full credit report to decide whether you can live in their building. In many states, a prospective employer — again, with your permission — can pull a truncated version of your credit report.
With a 680 score, absent any red flags — such as a bankruptcy, foreclosure, eviction or vehicle repossession — your credit history is not likely to cost you a job or an apartment. However, failing to maintain that “good” score can land you in a lower credit tier, adding a significant stress factor to your next search for career advancement or a new home.
A 680 credit score is a tipping point. A lesser score can make life harder in numerous ways, and it is often indicative of bigger problems, including an inability to live within your means or control your spending.
Nice Work. But How Can You Improve Your Credit?
If you have achieved a “good” score after many years of working hard to manage your finances, control your debt, and improve your credit profile, congratulations! Now that you’re here, this might be a good time to consider reevaluating any open loans or credit you might have.
Consider, for example, refinancing that auto loan you secured when you were not yet a member of the 680 Club. Refinancing with the right finance company can lower your monthly payment or reduce your interest rate, quite possibly reducing the total cost of your auto loan. We at Innovative Funding Services (IFS) specialize in auto loan refinance. Learn more about car loan refinancing, see how much you could save with our auto refinance calculator, or apply to refinance now!