675 credit score: A guide to credit scores

Quick insights

• A 675 credit score is considered ”good” by the two main scoring models.
• You may take out loans and apply for/get approved for credit cards with a 675 credit score.
• You may be able to increase your credit score over time by having healthful behaviors, such as paying monthly debts on time and lowering your credit utilization ratio.

Credit score ranges can vary depending on the scoring model used. Additionally, lenders may have their own criteria for what they consider a good credit score. To help you understand what a 675 credit score means for you, we’ll break it down into more detail below.

Understanding a 675 credit score

To help you understand where a 675 credit score falls for both main scoring models, we’ll list out the credit score ranges for you here.

The VantageScore^® credit score ranges are:

• Excellent: 781 to 850
• Good: 661 to 780
• Fair: 601 to 660
• Poor: 500 to 600
• Very Poor: 300 to 499

FICO^® credit score ranges are:

• Exceptional: 800+
• Very Good: 740 to 799
• Good: 670 to 739
• Fair: 580 to 669
• Poor: 579 and below

As you can see, a 675 credit score falls in the good credit score category for both scoring models. This number can imply several different things, such as:

• You might have good credit habits, but might not a robust credit history.
• You may have had some negative remarks in the past but you are working on rebuilding your credit history.
• You’re just starting out on your credit path and need to build up a consistent payment history to enhance creditworthiness.

While a 675 credit score is considered good, it may not qualify for the most favorable interest rates and terms offered by lenders. You may still find several opportunities with this score, as it is still within an acceptable range for many types of credit, but a higher score could give you more options.

Buying a home or car with a 675 credit score

Purchasing a home with a 675 credit score may be possible, but it may be more challenging than if you had an excellent credit score.

Be sure to carefully review and compare different lenders and loan options to find your best fit for your specific circumstances. While important, credit scores are just one of several factors lenders use when approving home loans. In general, some lenders may require a larger down payment, charge higher interest rates or have stricter loan terms for mortgage applicants they may consider in the "good" range.

When it comes to buying a car, it may be possible with a 683 credit score, but different dealerships and lenders may use different credit scoring models and different scales to make their own loan decisions, which could impact your loan terms and approval odds.

Even with a “good” credit score, you may be declined, subject to higher interest rates or need to provide a larger down payment than if you had a higher credit score. To help improve your chances for approval, it is usually beneficial to add a co-signer to the loan—if the lender allows—to share financial responsibility. All applicants should take note that while important, your credit score is just one of several factors lenders take into account when approving a loan.

Factors that contribute to a 675 credit score

A credit score is generated based of many different factors, but the ones you may want to focus on include:

• Payment history—this is your ability to make your monthly installments and credit card payments on time.
• Credit utilization ratio—the amount of credit you use against your total available credit. For example, if you use $2,500 of your $5,000 credit limit, your utilization ratio is 50%.
• Length of credit history—the age of your credit card accounts that have remained opened.
• Derogatory remarks—these are negative items that appear on your report, such as late payments or bankruptcy.

With a 675 credit score, individuals may still be able to qualify for credit cards, loans and mortgages, but they may face higher interest rates and potentially less favorable terms compared to those with higher credit scores. It can be important to continue working on improving your credit score.

Improving a 675 credit score

Thinking about taking your 675 credit score to the next level? You’re in the right place. With some patience and consistency, you could see your credit score improve and may even be able to access new financial opportunities. Below are some ways you can help to improve your 675 credit score.

• Build up your credit mix: You could build on your credit history by taking out a new line of credit such as a personal loan (note this will temporarily hurt your score at first due to your potential lender running a hard inquiry). Diversifying your credit can help build up your creditworthiness as it shows your ability to manage different kinds of accounts.
• Lower your credit utilization ratio: Ideally, this ratio should be at 30% or lower. By adjusting your spending and budget, you may decrease this ratio, resulting in an improved credit score.
• Don’t close old accounts: Logically, it might make sense to close a credit card account that you rarely use. The issue is, if you close it, you could delay improving your score and see your number decrease because it will impact on your credit history length. It could also negatively impact your credit utilization. Consider keeping this account open, using it sparingly and this way you can maintain your credit age.
• Pay off debt: Start by creating a budget and prioritizing debt repayment. Consider using strategies such as the debt snowball or debt avalanche method, where they either focus on paying off the smallest debt first or the one with the highest interest rate, respectively.
• Consider enrolling in Chase Credit Journey^®: This is a free online tool that anyone, including non-Chase cardmembers, can use. This tool comes with several helpful features such as the credit score improvement feature, which means that you can receive a personalized action plan provided by Experian™. It is tailored specifically to your goals and your credit behaviors.
• Monitor your credit report: Regularly reviewing credit card statements for accuracy can be key to maintaining and improving your credit score. If you find an issue with the report, be sure to dispute the inaccuracy with the credit bureau(s) to have the item removed.

In summary

Whether you’re just starting out on your path to credit or wanting to change your current behaviors to improve your credit score, small changes can go a long way. A 675 credit score already puts you in a decent spot for getting approved for loans and credit cards, but if you want access to more opportunities and lower rates, improving your score may be essential. Please note that there are other factors that also come into play. By consistently working on improving your score, you can see the results of your hard work reflected in your score over time.