Is 675 a Good Credit Score?

From qualifying for a wider variety of financial products to receiving more enticing rates and terms, having good credit opens more than one door. Curious to know whether 675 is a good credit score? Any credit score that falls within the 670 to 739 range on the FICO credit scale is considered “good,” even though a score of 675 falls below the U.S. average.

Highlights/ Key Takeaways

• A 675 credit score falls within the 670 to 739 range of the FICO credit scale; therefore, it is considered “good.”
• As of 2022, the average FICO score in the U.S. was 716, with 12.4% or consumers falling in the 650 to 699 range. 
• Credit scores can change over time, depending on a number of factors such as your credit usage practices, timely bill payments, and the age of your credit accounts.
• By continuing to build a good credit score, you will be able to qualify for more attractive financial products and more favorable rates and terms.

How a 675 Credit Score Affects Your Financial Outlook

A 675 FICO score falls right at the bottom of the “good” credit score range (670 to 739). This means that you will likely qualify for most financial products offered by traditional and alternative lenders alike. However, you will be looking at relatively high interest rates and might be faced with lower credit limits. To qualify for better rates and terms, you would need to continue working towards increasing your credit score to 700 or above.

For example, as of 2023, the minimum FICO score required to receive a conventional mortgage is 620. While you may still get a mortgage with a credit score below 700, you will have to pay more interest:

• A borrower with a score of 620 will be looking at a 5.085% APR for a 30-year loan.
• A borrower with a score between 700 and 759 will be looking at a much lower APR of 3.717% for the same 30-year loan.

Strategies for Improving Your 675 Credit Score

A credit score is a dynamic number, which can increase or decrease over time in response to your financial decisions and changes in your credit report. If you have already achieved a 675 credit score, you can improve your credit score further by following these proven strategies:

• Do not close any old accounts to ensure your credit history is as long as possible.
• Use no more than 30% of your total credit limit.
• Aim to pay off your credit card balance in full at the end of the month.
• Pay all the bills on time - pre-authorized payments can help you stay on track with this.
• Regularly check your credit report for possible errors or fraudulent activities.
• Apply for new loans sparingly - too many applications will damage your credit score.
• Keep your credit diverse with a mix of products like credit cards, lines of credit, car loans, and more.

How Long Does It Take to Get a 675 Credit Score?

A 675 credit score is below average, but it still requires time and commitment to achieve. The exact amount of time it takes to get a 675 credit score will depend on where you started out. If your credit score already falls within the “fair” range, you might be able to reach the “good” threshold within several months. If you are starting from scratch, achieving a 675 credit score can take a few years.

All in all, when it comes to raising credit scores, setting exact deadlines is a recipe for failure. Instead, focus on employing good credit management practices on a consistent basis, and your credit will rise up before you know it.

“When it comes to raising credit scores, setting exact deadlines is a recipe for failure.”

A 675 Credit Score vs. Other Credit Score Ranges

According to the FICO scoring model, credit scores fall within the following ranges:

• 300 to 579: Poor. Most traditional lenders will reject credit applications from individuals with poor credit scores.
• 580 to 669: Fair. If you fall within the “fair” range, you will likely need to turn to alternative lending options as well.
• 670 to 739: Good. Consumers with good credit can easily qualify for financial products offered by banks and credit unions. A 675 FICO score falls within this range.
• 740 to 799: Very Good. Borrowers with very good credit are considered “low-risk” and qualify for great rates and terms.
• 800 to 850: Excellent. If your credit score crosses the 800 threshold, you will be able to enjoy some of the most attractive financial product offerings on the market.

While a 675 credit score is still considered “good,” most lenders offer much better rates to applicants with a score of 700 or higher. For example, at this threshold, the average personal loan APR drops to 16.14%, as compared to the fair to poor credit APR of 22.02% to 27.7%.

How to Maintain a Good Credit Score

Maintaining a 675 credit score should not be difficult if you stay consistent with the same healthy credit management practices that helped you get in the “good” range to begin with. Keep your credit utilization ratio low, continue to pay off your bills and credit balances on time, and focus on diversifying your credit mix.

Don’t forget to regularly check your credit report for inaccuracies or errors, as a single negative record can drastically drop your score. You can use free credit monitoring platforms like AnnualCreditReport.com to obtain a copy of your credit report. If you do find a mistake, reach out to the creditor immediately to get it sorted out.

“Don’t forget to regularly check your credit report for inaccuracies or errors, as a single negative record can drastically drop your score.”

How to Scale Up and Achieve an Excellent Score?

Sometimes, all it takes to scale up from a “good” to “very good” to “excellent” credit score is time. If you are already planning your finances well and using your credit responsibly, achieving an excellent score will take no more than patience and consistency.

It is important to note that among all the factors used to calculate credit scores, your payment history and the amount owed carry the most weight. This means that if you wish to scale up your credit score faster, you must focus on keeping your balances low at all times and never missing a bill payment.

Final Word

While a 675 credit score is considered “good” based on the FICO score model, it won’t get you great financial products with attractive rates and terms. Of course, you will be able to qualify for a variety of personal loans for good credit and credit cards from banks and credit unions, but be prepared to pay higher borrowing costs. 

Luckily, with enough patience and commitment, you will be able to increase your credit score further to unlock a plethora of perks and bonuses that come with very good to excellent credit scores.