Your credit score is one of the most important factors that lenders consider when deciding whether to approve a loan or credit card. It can also have a big impact on your ability to buy a house or land an apartment.
Your credit score can determine what type of loans you’re able to get and how much they will cost you. This is why it’s so important to understand what your score means.
Overview of a 686 Credit Score
If you have a credit score of 686, it’s likely considered a Good or Fair score by FICO(r) and VantageScore. This means that you are more likely to be approved for loans and credit cards with favorable terms.
This score also indicates that you have a good credit history and a responsible financial behavior. You should know that your credit score is one of the most important indicators that lenders and future landlords will consider when making decisions about you and your finances.
Credit scores are calculated by weighing five different types of information. These factors include your payment history, amount owed, credit history, new credit and credit diversity.
Credit Card Options with a 686 Credit Score
With a credit score of 686, you have access to a variety of loans and credit cards. However, your interest rates may be higher than those of people with higher credit scores.
You can improve your score to take advantage of lower interest rates and better loan terms. WalletHub offers personalized advice to help you do just that.
A credit card that rewards you for responsible credit behavior is a great option for someone with a 686 credit score. For example, the Capital One QuicksilverOne Cash Rewards Credit Card offers 1.5% cash back on every purchase.
A low interest auto loan is also an option if you have a 686 credit score. You’ll have to compare your options carefully, but it can be a good option if you need a large sum of money.
Auto Loans with a 686 Credit Score
If you have a 686 credit score, there are still several options to consider when it comes to securing an auto loan. Most lenders will lend to borrowers with this credit score, but it is always best to make sure that you are getting the best interest rates available.
A credit score is a number that lenders use to evaluate a borrower’s creditworthiness, and a higher score means better terms on an auto loan. Credit scores range from 300 to 850, with higher scores indicating greater creditworthiness.
A high credit score is a great benefit when it comes to buying a car, as the average auto loan rate for someone with a FICO score of 730 or higher is 5.64%. This is a great rate for someone with good credit, so you may want to work on improving your credit before you apply for a car loan.
Personal Loan Options with a 686 Credit Score
If you have a 686 credit score, you have a fairly good chance of qualifying for personal loans. However, your interest rate may be higher than someone who has a “Very Good” or “Excellent” credit score.
If you want to qualify for a lower loan rate, consider adding a co-signer or applying for a joint personal loan. A co-signer with better credit and a higher income can help you qualify for the lowest interest rate.
You should also keep your credit utilization low by using less than 30% of your credit card limit. This can help raise your credit score and reduce the number of hard inquiries you’ll receive from lenders when you apply for new credit.
While it is still possible to get a personal loan with a 686 credit score, you’ll need to shop around and compare your options carefully. WalletHub’s free pre-qualification tool helps you estimate your approval odds and potential rates with multiple lenders at once, so you can make an informed decision.
Mortgages with a 686 Credit Score
Your 686 credit score puts you right in the middle of what lenders consider good credit. Lenders generally approve mortgages with credit scores between 620 and 580.
But your score isn’t quite high enough to qualify for a lender’s best interest rates or loan terms. So, you’ll want to work on improving your credit before applying for a home loan.
If you have a 686 credit score, you should be able to qualify for a conventional mortgage with a reasonable down payment, assuming your income and assets are sufficient. However, you should also know that lenders typically reserve their top mortgage rates for borrowers with very good or exceptional credit scores.