A credit score is one of the most important factors lenders consider when determining if you’re a good candidate for credit. A low score can prevent you from getting the financing you need for a home, auto or other financial product.
Your credit score is based on the mix of your credit and how well you manage it. A good mix includes installment loans (like mortgages or car loans) and revolving credit like credit cards.
Overview of a 688 Credit Score
The average 688 credit score is considered “good.” Consumers with this CIBIL Score have access to a range of loan and credit card products, though not at the lowest interest rates available.
There are five primary factors that determine your credit score: payment history, amounts owed, length of credit history, new credit, and credit mix. The more credit you have and how responsible you handle it, the higher your credit score will be.
The most important factor to remember is that a good credit score can be achieved, but only if you take the right steps toward repairing your credit. The most common and effective way to improve your score is by removing negative items from your credit report.
Credit Card Options with a 688 Credit Score
If you have a 688 credit score, you should be able to get approved for a number of different types of credit cards. These include general unsecured cards as well as secured cards.
Some credit cards for this credit score range may also offer 0% introductory APR promotions for the first 12 months or longer after you open the account. These promotions are useful for consumers who want to avoid interest charges on their purchases.
In addition to 0% introductory offers, there are cards for this credit score range with low or no annual fees. These can help you save money, and they may also give you the opportunity to build up a good credit line.
Auto Loans with a 688 Credit Score
With a credit score of 688, you have access to a wide range of auto loan options. Lenders will typically consider your score when approving a loan, although your interest rates may be higher than borrowers with stronger scores.
Your credit score is a measure of your creditworthiness that’s calculated using factors such as your payment history, amounts owed on loans and credit accounts, the length of your credit history, and more. It’s reported on a scale from 300 to 850 points, with higher scores typically indicating better creditworthiness.
A high credit score means you have a low risk of defaulting on your car loan, so lenders tend to offer lower interest rates and more favorable terms than borrowers with poor or fair credit. However, your credit is still susceptible to issues that could negatively impact your score.
Personal Loan Options with a 688 Credit Score
If you have a 688 credit score, there are several personal loan options for you to consider. A good credit score can secure you the best rates, terms and loan amounts for a variety of needs.
Having good or excellent credit means you’re in the prime borrower range, and you can qualify for higher loan amounts, lower down payments and better negotiating power with lenders on your credit card and loan terms. Your score will also help you keep your overall debt-to-income ratio low, which is a key factor for lenders when making their decisions.
Boosting your credit score can take some time, but it’s worth the effort to improve your odds of approval. Start by evaluating your credit report and identifying any negative items that are keeping your score suppressed. If possible, dispute these items to have them removed for good.
Mortgages with a 688 Credit Score
With a 688 credit score, you should be eligible for a variety of mortgage options. You can get a conforming mortgage, which is a conventional loan that meets the standards set by Fannie Mae and Freddie Mac, or an FHA mortgage with a lower down payment.
The best mortgage options for you depend on your situation. If you’re a first-time homebuyer, consider a fixed-rate mortgage.
However, if you’re already in the market for a new home, you may want to choose an adjustable-rate mortgage (ARM). These loans have lower interest rates and longer terms than traditional mortgages.
A 688 credit score should also give you access to a wide range of loan products, though not the lowest-available interest rates. Increasing your score will increase your chances of getting approved for an even greater number, and at more affordable lending terms.