680 Credit Score: What does it mean?

A 680 credit score is considered to be good. This means that you can get low interest rates on credit cards and loans. Lenders see consumers with scores in the good range as "acceptable" borrowers, which means they will offer you a variety of credit products.

Let’s get started to understand what it means, what you can get with a 680 credit score and how to improve it.

21% of U.S. consumers have credit scores that are considered "Good."

Is 680 a good credit score?

A 680 credit score is generally considered to be "good." This means that it's relatively easy to get approved for a mortgage, auto loan, or personal loan. Lenders prefer to work with borrowers who have good credit because it's less of a risk for them. And it gets even better: one of the best ways to improve your credit score is by repairing your credit. This will open up even more loan options with better rates that you and your family deserve. In summary, a 680 credit score indicates a good credit rating, many loan options, low loan costs, and minimal credit repair required.

Good range credit scores by age

The fact that nearly one-quarter of people aged 18 to 24 have credit scores of 700+ should give newcomers plenty of hope. Your credit score takes into account the average age of your credit cards and loans, so a high credit score is more likely for older individuals. However, this data should give young people optimism for the future.

Good range credit scores by income

People who earn an annual salary of at least $50K are significantly more likely to have a credit score of 700 or higher. Those who earn between $75K and $100K per year are in the ideal range for a score that begins with a 7 or an 8. However, it is possible to get a score in the 700s even if you earn less money, or to have a much lower score even if you make a lot more. It all depends on spending within your means.

Forty percent of consumers have credit scores that are lower than 680.

How to get a 680 credit score

There is no one specific formula that will guarantee a certain credit score. However, you can aim to get within a general range. Even with the different credit scores and definitions of good credit, there are some general principles that can help you establish and maintain healthy credit. Adhering to these principles over time can gradually improve your scores, making you a more attractive borrower in the eyes of lenders.

Here are some practical tips to help you stay on top of the important factors that can affect your credit:

1. Keep your credit utilization rate low

Your credit utilization rate is the percentage of your available credit that you are using at any given time. It is recommended that you keep your credit utilization rate below 30%. This means that you should be using less than 30% of your available credit at any one time. Generally speaking, the less available credit you use (while still maintaining consistent use to help keep the card active), the better.

If you check your credit reports and find that you have a credit utilization rate higher than 30%, you have options to lower it, such as paying down debt or increasing your credit limits. To increase your credit limits, you’ll need to ask your current lenders for a limit increase. However, be aware that this could result in lenders doing a hard inquiry on your credit when they make their decision.

2. Pay your installments on time

The record of your on-time payments, or your payment history, can be a significant factor in your credit scores. The amount that a late payment can affect your scores varies depending on factors such as how late the payment is and how recently the payment was missed.

However, consistently paying on time can help you build your credit, which could increase your likelihood of being approved for more credit in the future if you need it.

3. Build your credit mix

It is generally not recommended to take out a loan, which could be expensive, simply to improve your credit score. However, having a mix of different types of credit can be beneficial to your score in the long term. Types of credit include revolving credit (such as credit cards) and installment credit (such as auto loans and mortgages).

However, there is a potential downside: Applying for new credit can result in a hard inquiry on your credit reports, which can lower your scores. While the impact of this is typically minor, too many hard inquiries in a short period of time can be a warning sign to lenders. That is why it is important to have a good idea of whether or not you will be approved for a credit card or loan before you apply.

4. Time is needed

The length of your credit history, or how long you have had active accounts open, can also affect your credit scores. A longer credit history can show lenders that you have more experience using credit.

If you have an expensive line of credit open (like a high-fee credit card), you may be looking to close it. But closing a credit card can affect important credit factors like the age of your credit history, so carefully consider your options before cancelling a credit card.

How to improve your 680 credit score

A credit score of 680 gives you access to many different loans and credit card products. However, if you increase your score, you will have a better chance of being approved for even more loans at more affordable terms.

Furthermore, because a 680 credit score is on the lower end of the Good range, it is important to be careful with your score so that it does not drop into the Fair credit score range (580 to 669), which would limit your borrowing options.

Check your credit score regularly: It is advisable that you check your credit score on a regular basis. Doing so can give you valuable insights into your progress as you work to improve your score. It is normal for your score to fluctuate from time to time, but you should look for overall upward trends as you maintain good credit habits. To make the process easier, you may want to sign up for a credit-monitoring service. You might also want to consider an identity theft protection service that can alert you to any suspicious activity on your credit reports.

Avoid high credit utilization rates or debt usage: It is best to avoid high credit utilization rates or debt usage. Try to keep your utilization across all your accounts below about 30% to avoid lowering your score.

Seek a solid credit mix: It is prudent to borrow money in a way that promotes good credit scores, by using a mix of installment loans and revolving credit. However, no one should take on more debt than necessary.

According to data from credit reports, 33% of people with a credit score of 680 have at least one late payment (past due 30 days).

Pay your bills on time: One of the best ways to boost your credit score is to pay your bills on time. Find a system that works for you and stick with it. Automated tools such as smartphone reminders and automatic bill-payment services can be helpful for many people. Others may prefer sticky notes and paper calendars. After six months or so, you may find yourself remembering to pay your bills on time without help. Even after you have formed the habit of paying your bills on time, it is still a good idea to keep using the system you have set up in case you forget again.

Strategies to build 700+, 750+ credit score and above

If you have a good credit score (680 or above), you likely already practice good credit habits. But did you know that a "very good" credit score (740 and above) can get you even better interest rates? The good news is, that it doesn't take much to improve your credit when you're already in the good range. Just pay attention to these credit score factors:

Payment history

A single late payment can have a significant negative impact on your credit score. To avoid the risk of making a late payment, you may want to consider setting up autopay for your credit cards and other bills. For a 750 credit scorecard, an "A" grade indicates 100% on-time payments.

For a 750 credit scorecard Debt Load, a grade of "A" means less than a 0.28 debt-to-income ratio.

Credit utilization

If you want a high credit score, aim to use 30% or less of your credit limit. Utilization below 10% is considered excellent by VantageScore, the main competitor to FICO. You could ask your credit card issuer for a higher limit or consider opening a new credit card. In either case, don't increase your spending or you'll lose the benefit of a higher overall limit bringing down your utilization. Having a credit utilization rate of 1-10% is like getting an "A" on your 750 credit scorecard.

By Collections Accounts and Public Records, a credit scorecard for someone with a credit score of 750+ grade A means zero collections accounts and public records.

Length of credit history

The longer you have been using credit, and the longer your average age of accounts, the better it is generally for your score. Remember, credit scores are designed to estimate your risk as a customer, and a long history provides more data to base that estimate on.

Unless there is a pressing reason, like a high annual fee, try to avoid closing credit cards. You can also look into doing a product switch to a more suitable card from the same issuer. On the credit scorecard for account age, a grade of "B" means that the average account is less than 9 years old.

Credit applications

Every time you apply for credit, there is likely to be a hard inquiry on your credit report. Each of those can take a few points off your score temporarily, so it's best to space out applications by about six months. The credit scoring card for hard credit inquiries grade "A" means having fewer than 3 inquiries in the past 24 months.

Credit mix

It is better for your credit score to have a mix of installment loans (with fixed payments for a set time) and revolving credit (like credit cards). For example, a credit scorecard with a 750+ credit score gets an "A" grade for account diversity if the person has 4+ account types or 21+ total accounts.

Maintaining a good credit history

The average American consumer has a good FICO® score. With some time and effort, you can increase your score into the Very Good range (740-799) or even the Exceptional range (800-850). Moving in that direction will require an understanding of the behaviors that help grow your score, and those that hinder growth:

Late and missed payments are some of the most significant negative influences on your credit score. Lenders want borrowers who will pay their bills on time, and research has shown that people who have missed payments in the past are more likely to default on their debt than those who always pay on time. If you have a history of making late payments, you can improve your credit score significantly by breaking that habit. In fact, more than one-third of your credit score (35%) is influenced by whether or not you have any late or missed payments.

Your credit utilization rate is a key factor in determining your credit score. This ratio represents the amount of credit you're using compared to your total credit limit, and it's important to keep it below 30% for optimal credit health. You can calculate your utilization rate for each individual credit card by dividing the outstanding balance by the credit limit and multiplying by 100. To get your overall utilization rate, add up all the balances and divide by the sum of all the credit limits.

Table 1: Utilization rate example

	Balance	Spending limit	Utilization rate (%)
American Express	$1,300	$3,000	43%
Diners Club	$500	$5,000	10%
VISA	$3,000	$12,000	25%
Total	$20,000	$20,000	24%

Credit history: Although other factors play a role, generally speaking, the longer your credit history, the higher your credit score will be. If you're a new borrower, that may not mean much. But if you manage your credit carefully and make all your payments on time, your credit score will slowly start to increase. In fact, the age of credit history can account for up to 15% of your credit score.

Opening new lines of credit or taking on additional debt can have a negative, albeit short-term, effect on your credit score. Credit-scoring systems view this behavior as an increased risk of default and will dip your score accordingly. However, as long as you stay current on your payments, your score will rebound within a few months. It's advisable, then, to space out applications for new credit by six months or more. Additionally, try to avoid opening any new accounts in the months leading up to a major loan application, such as for a mortgage or auto loan. New-credit activity can make up for 10% of your total credit score.

While public records like bankruptcies may not appear on every credit report, they can still have a significant impact on your credit score if they are listed. In fact, one or more negative entries can outweigh all other positive factors and severely lower your score. For example, a bankruptcy can stay on your credit report for 10 years and may prevent you from accessing many types of credit during that time.

If you want to improve your credit score, it's important to have a variety of different types of credit accounts. The FICO® credit scoring system gives more weight to individuals with multiple types of credit accounts, including both revolving credit (accounts like credit cards that let you borrow against a spending limit and make variable monthly payments) and installment loans (e.g., car loans, mortgages, and student loans with set monthly payments and fixed payback periods). Credit mix accounts for about 10% of your credit score, so it's definitely worth considering if you're looking to give your score a boost.

42% of Individuals with a 680 credit score have credit portfolios that include auto loans and 29% have a mortgage loan.

What does a 680 credit score get you?

Credit Cards For 680 Credit Score

Table 2: What can you get with a 680 credit score

Item	Does 680 credit score qualifies?
No annual fee credit card	Yes
Credit card with 0% financing	Yes
Favorite store’s credit card	Yes
No-foreign-fee credit card	Yes
Airline/Hotel credit card	Yes
Initial credit card bonus	Yes
Any credit card	No
Apartment rental	Yes
Personal loan	Maybe
Mortgage loan	Maybe
Auto loan	Maybe

Benefits from a good range credit score

If you have a good credit score, it may mean that you have a relatively short credit history but have managed your credit well. Alternatively, it may mean that you have a longer credit history with a few mistakes, such as occasional late or missed payments, or high credit usage rates. Lenders see people with scores like yours as good prospects for business. Most lenders are willing to extend credit to borrowers with good credit scores, although they may not offer the best interest rates, and card issuers may not offer the most rewarding loyalty bonuses.

Consumers with 680 credit scores have an average of 4.2 credit card accounts.

Can I get a mortgage loan with a 680 credit score?

If you have a credit score of 680, you should be able to easily get a mortgage or home loan. Your current score is considered to be a mid-to-high credit rating. There are multiple types of FICO scores and while mortgage lenders don’t usually use the same one that’s used to make most lending decisions, they will consider a version that doesn’t weigh as heavily on credit utilization. Most lenders will still look at a person’s credit score to evaluate their creditworthiness. A 680 credit score is also good enough to buy a house. You can even find lenders that will consider you for higher-value homes requiring “jumbo” mortgages. Your credit score is one of many factors that determine mortgage interest rates. Getting a good rate can save you many thousands of dollars over the life of your loan.

Can I get an auto loan with a 680 credit score?

If you have a 680 credit score, you will likely qualify for a relatively cheap auto loan. This is because there is less risk for the car lender, which means you get better rates. Taking out an auto loan with a 680 credit score shouldn't be difficult. The best rates for auto loans are usually available to people with good-to-excellent credit, but what counts as "good" credit can vary from lender to lender. In addition to the base credit-scoring models like FICO and VantageScore, there are also industry-specific scores that lenders could check, such as FICO® Auto Scores. As you research the best credit card for your needs, pay attention to the score required. Since each application can temporarily nip a few points off your score, you want to make sure you're likely to be approved. However, you should find plenty of choices of credit cards for a 680 score.

Can I get a credit card with a 680 credit score?

If you have a good credit score, you might qualify for some great credit cards with perks like cash back, travel rewards, or an introductory 0% APR offer. However, the very best and most-exclusive credit cards are usually reserved for people with excellent credit scores. So if that's your goal, there's still room for improvement. A credit score of 680 would still give you access to some good travel rewards credit cards, though you usually need an excellent credit score to get a luxury credit card.

You can get even better terms on your loan or credit card by repairing your credit and waiting a few short months until your score improves.

A 680 score means you likely have a few negative items on your report. Removing any outstanding negative items (or hard inquiries) is usually the quickest way to fix your report.