A 687 credit score is generally considered a “good” credit score. Most lenders will approve borrowers with this score for loans, but they may have higher interest rates and fees than those with better scores.
Your credit score is based on your payment history, debt amount owed, and credit utilization. Pay close attention to these factors and work toward improving them.
Overview of a 687 Credit Score
A 687 credit score is considered Good, and most lenders will approve mortgages, auto loans, and personal loans for borrowers with this score. However, a higher score will lead to better interest rates and terms, so it’s important to work on improving your credit scores before applying for any new loans.
The three major credit bureaus use five different factors to calculate your credit score. These include your payment history, amount owed, credit history, new credit, and credit diversity.
While these factors are all important, the one that affects your score most is how much debt you owe on each of your credit accounts. If you have a high revolving balance on your credit cards, this will lower your overall credit score.
Credit Card Options with a 687 Credit Score
If you have a 687 credit score, you will have plenty of credit card options. Depending on your credit history and spending habits, you might qualify for cards with no annual fee or low fees.
You might also be able to get a credit card that offers rewards or cash back on certain spending categories, like gas, grocery stores and restaurants. These bonuses can be a great way to save money on your purchases and pay off your credit card debt quickly.
You may also be able to find cards that offer 0% interest for a set period of time. These introductory offers can be a great way to save money and build your credit.
Auto Loans with a 687 Credit Score
If you’re in the market for a new car, it may be time to start shopping around for an auto loan. This is an important step because it can help you get a low interest rate and lower your monthly payments.
Credit scores play a major role in determining how much you can borrow and the interest rate you’ll pay on an auto loan. Typically, lenders will use a credit-scoring model like FICO or VantageScore to determine your auto loan risk.
A higher credit score means that you’re less of a risk to lenders, so they’ll be willing to offer you a lower interest rate on your loan. Similarly, a low credit score means that you’re more of a risk to lenders, so they’ll charge you more for your loan.
Personal Loan Options with a 687 Credit Score
A credit score of 687 is considered “good.” It’s still far away from a “Very Good” or “Exceptional” rating, but it can qualify you for personal loans at lower interest rates and better loan terms than scores in the fair or poor range. The minimum credit score you need to be approved for a personal loan largely depends on the lender, says Rod Griffin, senior director of public education and advocacy at Experian.
A good credit score requires removing all inaccurate, negative items from your report, maintaining a good credit mix and having an aged, revolving credit account (such as a 2+ year old credit card). You also want to keep your revolving balance below 30% utilization.
Mortgages with a 687 Credit Score
If you’re looking to buy a home, a 687 credit score should be more than enough to get a mortgage. However, it’s important to know that your credit score is not the only thing lenders consider when deciding whether or not to approve you for a loan.
A mortgage lender will also look at how much total debt you have. This includes both revolving and non-revolving debt.
This type of debt typically has a higher interest rate than revolving loans, so it’s important to pay down any non-revolving debt before applying for a mortgage loan. The lower your overall debt load, the better your credit score will be.