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Congratulations - you’ve set a goal to build up your credit and become a more attractive borrower that qualifies for lower interest rates, larger credit limits, and more enticing perks and bonuses. But is 680 a good enough credit score? While there is still room for improvement, any credit score that falls within the 670 to 739 range on the FICO credit scale is considered to be "good".
Highlights/ Key Takeaways
- Credit scores are calculated based on a number of factors, including your bill payment practices, credit usage patterns, and the length of your credit history.
- A 680 credit score falls in the “good” range (670 to 739) within the standard FICO credit scale of 300 to 850.
- Borrowers with good credit can easily qualify for a variety of personal loans and other financial products with decent rates and terms.
- You can achieve a good credit score of 680 by paying your bills on time and in full, keeping your credit utilization ratio low, and limiting the number of new credit applications.
The Effects of a 680 Credit Score on Financial Decisions
While there is no magic number that will guarantee you better loan rates and terms, higher credit scores are generally associated with more attractive loan offerings and higher chances of approval.
In general, applicants with a good credit score are considered acceptable, as they have a good history of timely bill payments and responsible credit management. As such, traditional banks and credit unions readily extend their product offerings to customers that fall within the “good” credit range, including those who have a 680 credit score.
As a borrower with a 680 to 700 credit score, you can expect decent rates and terms, but nothing out of the ordinary. To unlock even better rates and higher credit limits, you will need to increase your credit rating further into the “very good” or “excellent” range.
“As a borrower with a 680 to 700 credit score, you can expect decent rates and terms, but nothing out of the ordinary.”
Building Up a 680 Credit Score
A credit score is a number ranging from 300 to 850, which is determined by a combination of factors related to your financial history. Anyone can build their credit score up to 680 by following these responsible credit management practices:
- Do not close out old accounts. The age of your credit accounts is an important factor determining your credit score. Keeping old accounts open will ensure that your credit history is as long as possible.
- Use credit responsibly. When using a credit card, make sure you can pay it off in full at the end of the month. If you can’t do so, aim to keep your credit balance under 30% of the total limit and submit at least the minimum payment amount.
- Never miss bill payments. Make it a rule to submit all bill payments on time, without exception. Timely bill payments are among the most important factors contributing to your overall credit score.
- Regularly review your credit report. Use free credit monitoring services like AnnualCreditReport.com to regularly examine your credit report for any errors or fraudulent activity. If you do notice any mistakes, get them fixed as soon as possible.
- Avoid multiple credit applications. Submitting several credit applications in a short period of time can have an adverse impact on your credit score. Stick with one credit card and apply for new loans sparingly.
- Diversify your credit mix. It is recommended to have a mix of different types of credits. For example, one can have a line of credit, a credit card, and a mortgage.
Benefits of a Good Credit Score
Your credit score determines what financial products you qualify for - and how attractive they are. Once your score reaches the “good” range, you will be able to enjoy the following benefits:
- A variety of financial products to choose from. Most banks and credit unions consider applicants with good credit scores “low-risk” and readily extend a variety of product offerings to them.
- Reasonable loan and credit card interest. Unlike borrowers with a poor or fair credit score, good credit applicants qualify for reasonable interest rates and terms.
- Easier approval by landlords. Most landlords use credit scores as part of a tenant screening process. If your credit score falls within the “good” range, it will most likely be enough to secure a rental.
- No security deposit on a cell phone purchase. If you have a “poor” or “fair” credit score, you might be asked to put down a security deposit when purchasing a new phone. With a good credit score, this up-front cost is eliminated.
- Problem-free utility services. A good credit score means that you will have no problems when setting up accounts for utilities like water, gas, and electricity.
Maintaining a 680 Credit Score
Once you reach a 680 credit score, maintaining it should not be difficult. All you need to do is stick to the same responsible credit utilization practices that have built your credit up in the first place:
- Do not close old credit accounts.
- Keep your credit usage below 30% of the total limit.
- Pay bills on time and in full.
- Regularly check your credit report for any possible errors.
- Avoid applying for new credit too often.
- Keep a diverse mix of different credit types.
A 680 Credit Score vs. Other Credit Score Ranges
A 680 credit score falls within the “good” range, which is around the middle of a FICO credit score scale:
- Poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Excellent: 800 to 850
If you’ve achieved a 680 credit score, you have already done an excellent job keeping up with your bills and credit card payments and have proved your creditworthiness. However, there is still room to grow: by elevating your credit score into the “very good” or even “excellent” range, you will be able to unlock some of the most favorable lending rates and terms on the market.
It is worth noting that FICO is not the only credit score model used to evaluate individual creditworthiness. For example, VantageScore assigns different weights to various factors found on one’s credit report, - albeit it still uses the same scale of 300 to 850.
Credit score ranges also differ between FICO and VantageScore. However, the answer to the question “Is 680 a good credit score?” remains the same. With both scoring models, a 680 credit score falls within the “good” range.
Understanding the Demographics of a 680 Credit Score
The average American has a good credit score measuring at 714 points based on the FICO score model. As compared to the general population, individuals in their 20’s have an average credit score somewhat lower: just one point shy of 680. This makes sense: young adults simply do not have a long-enough credit history to reach a higher credit score.
As of 2020, a 680 credit score is also more likely to belong to someone with low- to moderate-income. While you don’t need to have a lot of money to build a good or excellent credit score, high-income individuals are more likely to have higher credit scores.
A 680 credit score is considered “good” based on the FICO score model, but there is still room for improvement. With a good credit score, you will be able to qualify for a range of financial products, - but very good to excellent credit is a must should you wish to enjoy more enticing rates and terms. To elevate your 680 credit score into the “very good” range, you need to continue paying your bills on time and making responsible credit decisions.