When you’re deciding which credit card, loan or mortgage to apply for, your credit score can play an important role. Knowing what a 699 credit score means can help you make better decisions.
This credit score falls in the middle of the “fair” and “good” credit tiers. It’s not as high as the “excellent” or “very good” credit tiers, but it’s not low enough to qualify for lender’s best rates and terms.
Overview of a 699 Credit Score
A credit score is a three-digit number lenders use to evaluate your credit history and determine if you’re likely to pay back loans. The three major credit bureaus — Experian, Equifax and TransUnion — collect information from a variety of sources, and use that data to create your score.
Your credit score is based on five factors:payment history, amounts owed, length of credit history, new credit and credit mix. The factors weigh differently for different borrowers.
Having a diverse portfolio of revolving and installment credit accounts promotes a good score, as do prudent borrowing and on-time payments. However, you should avoid taking on too much debt without considering your current financial situation.
Credit Card Options with a 699 Credit Score
There are a wide variety of credit card options available for those with a 699 credit score. These cards generally report payments to all three credit bureaus, offer reasonable terms, and can help you build or rebuild your credit.
Among the most popular options for people with this credit score range are unsecured credit cards. These cards typically have a low annual fee and will usually increase your credit line based on your payment history.
Those with a 699 credit score can also consider secured credit cards, which require a security deposit to open. These cards work just like unsecured ones, except that you will usually pay interest on the balance you carry.
Auto Loans with a 699 Credit Score
Your credit score is a major factor in the interest rates you receive for auto loans. Lenders group borrowers into credit bands based on credit-scoring models like FICO(r) and VantageScore.
A lower credit score indicates higher risk to lenders. A lower score can result from several factors, including late payments or a charge-off.
In addition to the credit score, there are a few other factors that affect your rate for an auto loan. The length of your loan term also has a significant impact on the interest you’ll pay.
Generally, the longer the loan term, the higher your auto loan interest rate will be. However, you can save money in the long run by choosing a shorter-term loan. This can also help you to pay off your loan sooner.
Personal Loan Options with a 699 Credit Score
There are a number of personal loan options available to consumers with a 699 credit score. While these loans usually have less-than-ideal interest rates and terms, they do exist.
One of the best ways to increase your chances of securing a low rate on a personal loan is by increasing your credit score. This will not only help you to qualify for more credit but also secure better lending terms.
You can try to improve your credit score by repairing negative items that may be holding it back. You can do this by evaluating your credit report, disputing any inaccurate information and taking steps to reduce debt.
You can also consider getting a co-signer on your loan. Having a person with good or excellent credit co-sign for you makes the lender more likely to approve your loan. You can also use a credit building tool like WalletHub’s free pre-qualification service to see what your approval odds are and potential rates with multiple lenders at once.
Mortgages with a 699 Credit Score
A 699 credit score makes it easy to qualify for a variety of mortgages. This includes conventional (conventional loans that meet the standards of Fannie Mae or Freddie Mac) and FHA mortgages with low down payments.
However, if you want to qualify for the best interest rates and terms, you should raise your credit score before applying. You can do this by completing minimal credit repair.
The mix of your credit accounts, which includes revolving and installment loans, also plays a role in your credit score. The more diverse your credit portfolio is, the higher your score will be. This includes both revolving credit cards, like those that offer rewards or low APR promotions, and installment loans such as auto and home mortgages.