Having a credit score of 696 is considered to be “Good.” Most lenders will accept borrowers with this credit score.
A good credit score will help you qualify for a mortgage, auto or personal loan with favorable terms and interest rates. If you are planning on applying for one of these loans, it’s a great idea to begin raising your credit scores so that you can be approved for the best rates available.
Overview of a 696 Credit Score
A 696 credit score is considered fair, and borrowers with this score can find a range of options for loans and credit cards. However, their borrowing options are limited compared to those who have better scores.
A credit score is a combination of five factors: Payment history, amounts owed, length of credit history, new credit and credit mix. While all of these factors are important, the most critical factor to improving your credit score is your payment history.
A positive payment history shows that you have responsibly used your credit in the past. This can help you qualify for more credit and lower your interest rate. Also, a positive payment history is a key factor in getting approved for mortgages and auto loans.
Credit Card Options with a 696 Credit Score
If you’re a 696 credit score owner, your options are somewhat limited when it comes to credit cards. However, if you make payments on time and pay off your balance in full each month, you can quickly build credit.
The best type of credit card to use with a 696 credit score is one that offers ongoing rewards or a low APR promotion. This will help you save money on everyday purchases and avoid costly interest charges.
A credit card that pays 1.5% cash back is a good choice. If you charge an average of $500 per month, that’s an extra $90 a year in rewards/cash back.
Auto Loans with a 696 Credit Score
If you have a 696 credit score, there are several auto loan options for you to consider. These include banks, credit unions, online lenders and loan marketplaces.
One option for people with low credit scores is to ask a friend or family member with a higher credit score to co-sign the loan with you. This strategy reduces the risk to the lender, and can help you get a better rate on your car loan.
Another way to increase your chances of getting an auto loan with a 696 credit score is to shop around for different rates. Whether you go to the dealership or a bank, rate-shopping will give you an idea of what’s available to you and can help you find a better deal on your auto loan.
Personal Loan Options with a 696 Credit Score
When it comes to personal loans, your credit score is one of the most important factors that lenders look at. It shows them how dependable you are as a borrower and how much risk they may face if you default on the loan.
Your credit score will impact your loan eligibility, amount you can borrow, and interest rates. It also determines how long you’ll have to repay your loan.
You’ll want to choose a repayment term that matches your needs. This will help you avoid paying a higher interest rate.
A personal loan can be used to pay for anything from a new car to a home. It can be a good way to get financing when you need it, but keep in mind that the interest you’ll pay over the life of the loan can add up quickly.
Mortgages with a 696 Credit Score
If you have a 696 credit score, you’ll find that mortgages are relatively easy to obtain. Generally, people with these scores receive about 25% to 30% of all first mortgages, depending on the year.
However, you may want to consider raising your credit score before applying for a home loan. If you do, you can qualify for better interest rates and terms.
One way to improve your credit is to make on-time payments with existing accounts. You can also dispute any negative items on your report that are hurting your credit score. Getting these negative items removed is often the fastest way to boost your score. A free consultation with an online credit repair expert can guide you through the process.