A 685 credit score falls into the “Fair” category based on FICO and VantageScore models. While it is not considered bad, it does not provide access to the best financial opportunities either. Individuals with this score may still qualify for loans, credit cards, and mortgages, but the interest rates and terms may not be as favourable as those available to people with good or excellent credit scores.
This article will cover:
- What a 685 credit score means
- How it compares to other credit scores
- Loan and credit card approval chances
- Ways to improve a 685 credit score
- Common myths about credit scores
Is a 685 Credit Score Good or Bad?
A 685 credit score is above poor but below good. It falls in the “Fair” range, meaning lenders may approve you for loans, but not at the best rates.
Credit score ranges vary slightly depending on the scoring model, but here’s a general breakdown:
- Poor Credit: Below 580
- Fair Credit: 580 – 669
- Good Credit: 670 – 739
- Very Good Credit: 740 – 799
- Excellent Credit: 800 – 850
A 685 credit score sits in the lower end of the Good category, which means improving it slightly can lead to much better financial opportunities.
Can You Get Approved for Loans with a 685 Credit Score?
Lenders consider credit scores when determining approval for mortgages, auto loans, personal loans, and credit cards. With a 685 credit score, you can qualify for these financial products, but the terms may not be ideal.
Mortgage Approval with a 685 Credit Score
A credit score of 685 is good enough to qualify for a conventional mortgage, but interest rates may be higher. Borrowers with scores above 740 receive better interest rates, which can save thousands of dollars over the life of a mortgage.
If you are applying for an FHA loan, the credit score requirements are lower, and 685 is considered good for this type of mortgage. However, a larger down payment or a lower debt-to-income ratio can increase your approval chances.
Auto Loan Approval
With a 685 credit score, you may qualify for an auto loan, but lenders may charge a higher interest rate compared to borrowers with credit scores in the 700s. Some lenders offer special financing for good credit applicants, and working with a credit union may help secure better loan terms.
Personal Loan Approval
A 685 credit score is high enough to qualify for a personal loan, but the interest rate may be moderate to high. Some lenders require a minimum credit score of 700 for lower interest rates.
To secure better loan terms, consider:
- Reducing existing debt before applying
- Checking for pre-approved loan offers
- Comparing multiple lenders for the best rates
Credit Card Options with a 685 Credit Score
A 685 credit score allows access to decent credit cards, but premium travel or high-reward cards may be out of reach. Many credit card issuers offer cash-back, balance transfer, or low-annual-fee cards for individuals in the fair to good credit range.
Some recommended options for people with a 685 credit score include:
- Cash-back credit cards
- Low-interest balance transfer cards
- Mid-tier travel rewards cards
To improve approval chances, consider keeping credit utilization low and avoiding new hard inquiries before applying.
Factors Affecting a 685 Credit Score
A credit score of 685 is determined by several key factors, including:
1. Payment History
This accounts for 35% of your credit score. A single missed payment can cause a significant drop in your score. Always ensure on-time payments to maintain and improve your score.
2. Credit Utilization Ratio
Credit utilization makes up 30% of your credit score. Keeping your credit card balances below 30% of your limit is essential for maintaining a strong score.
3. Length of Credit History
The longer your credit history, the better. Closing old credit cards can reduce the average account age, which may lower your score.
4. Credit Mix
Having a mix of credit types, such as credit cards, auto loans, and mortgages, contributes to 10% of your score. A diverse credit profile is seen as a sign of responsible borrowing.
5. New Credit Inquiries
Applying for too many new accounts within a short time can lower your score. Hard inquiries stay on your credit report for two years and affect your score for about 12 months.
How to Improve a 685 Credit Score
If you want to move into the Good or Very Good credit range, follow these steps:
1. Pay Bills on Time
Late payments are one of the biggest factors in determining your credit score. Set up automatic payments or reminders to avoid missing due dates.
2. Lower Your Credit Utilization
If your credit utilization is over 30%, pay down existing debt to improve your score. Consider requesting a credit limit increase to help lower utilization.
3. Keep Old Accounts Open
Closing credit card accounts can shorten your credit history length, which may negatively impact your score. Instead, keep older accounts open and active.
4. Avoid New Hard Inquiries
Only apply for credit when necessary. Too many hard inquiries lower your score and make you look risky to lenders.
5. Diversify Your Credit Mix
If you only have one type of credit, such as a credit card, consider adding an instalment loan (like a small personal loan or auto loan) to improve your credit score over time.
Common Myths About a 685 Credit Score
1. A 685 Credit Score Guarantees Loan Approval
While a 685 credit score is not bad, other factors like income, employment status, and debt-to-income ratio also play a role in loan approvals.
2. Closing Old Accounts Will Improve the Score
Closing old accounts reduces your credit history length, which can lower your score rather than improve it.
3. Checking Your Credit Lowers Your Score
Checking your credit score is considered a soft inquiry and does not impact your score. However, applying for new credit does create a hard inquiry, which can lower your score temporarily.
4. A Higher Income Increases Credit Score
Your income does not directly affect your credit score. However, lenders consider income when determining your loan approval and credit limit.
Final Thoughts
A 685 credit score is fair but not great. It provides access to loans and credit cards but at higher interest rates. Improving your score by maintaining good credit habits is important to qualify for better financial opportunities.
By following smart financial practices, you can increase your credit score and move into the Good or Very Good credit range, opening doors to better loan terms, higher credit limits, and lower interest rates.
If you need expert guidance on improving your credit score, Tax USA provides professional financial advice to help you achieve your financial goals.