688 credit score: A guide to credit scores
Quick insights
- A 688 credit score is considered to be “good” by the major credit scoring models.
- If you’re looking to increase your score, there are strategies you can implement that may help improve your score over time.
- Though a 688 credit score can provide financial opportunities such as various borrowing options, you may be more limited with terms and interest rates than if you had a higher credit score.
No matter what your credit score is, if you don’t understand what it’s trying to tell you about your financial health, the number may not mean much to you. In this article, we’ll explain what a 688 credit score means and suggest some ways you may be able to improve it.
Evaluating a 688 credit score
As a way to help you understand the context of a 688 credit score, let’s break down the credit score ranges as used by both the VantageScore® and FICO® scoring models.
As of May 2024, VantageScore® ranges areexperian-blog-vantage-score:
- Excellent: 781 to 850
- Good: 661 to 780
- Fair: 601 to 660
- Poor: 500 to 600
- Very Poor: 300 to 499
As of May 2024, FICO® score ranges aremy_fico_crd_score:
- Exceptional: 800+
- Very Good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 579 and below
A 688 credit score falls into the good credit score ranges for both VantangeScore and FICO. But what does this mean? Let’s explore this score in more detail.
Buying a car with a 688 credit score
Are you thinking about purchasing your next vehicle? Buying a car may be possible with a 688 credit score; however, it’s important to note that different dealerships and lenders may use different credit scoring models and scales to make their own loan decisions, which could impact your loan terms and approval odds.
Even if you have 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 can be 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.
Buying a home with a 688 credit score
Purchasing a home with a 688 credit score may be possible, though it may be more challenging than if you had an excellent credit score. Whatever you decide, carefully review and compare different lenders and loan options to find your best fit for your specific circumstances. While credit scores are important, they 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 to be in the "good" range.
Improving a 688 credit score
If you’re thinking about improving your 688 credit score—whether to land better rates and terms or simply because you want to improve your overall financial wellness—you're in the right place. There are a few steps you can start taking that can help you improve your score.
- Improve your payment history. Just one late payment can hurt your score, so by continuing to make your payments on time, you may be able to help increase your chances of raising your credit score.
- Lower your credit utilization ratio. This is the percentage of how much credit you use against your total available credit. Lowering this percentage can have a positive impact on your credit score.
- Build up your credit history. The longer your accounts have been opened, the more time you’ve been able to show lenders your ability to manage accounts. When possible, avoid closing old credit card accounts to avoid potential negative impacts to your credit history and score. Issuers often close accounts due to inactivity, so you may keep them open by using them sparingly.
- Prioritize your debts. You can implement a debt repayment strategy that works best for your situation, such as the snowball (paying smaller debts off first) or avalanche (paying off high interest rate debts first) methods.
- Consider enrolling in Chase Credit Journey®, a free online tool anyone can use to check their free credit score and report provided by Experian™. You may want to use the credit score improvement feature to set a score goal and track any progress you make towards it.
Conclusion
Starting out on your path towards financial wellness is a big step, but breaking it down into smaller, digestible parts can help you better understand your credit score, what it means and how to improve it. With the right resources, you can feel empowered to make informed financial decisions which can help improve your overall financial outlook.
